Which is an ideal jurisdiction for company incorporation in Asia? Singapore and Hong Kong have been dominant players in the Asian region, vying for the position of “the best place to do business.” But the crucial questions are, which of these jurisdictions have an edge over the other? Is incorporating a business easier in Singapore or in Hong Kong?
Strategic location and attractive tax benefits make Singapore the most preferred location for the overseas companies to set up their business. Various options are – opening up a Branch Office, a Representative Office or a Subsidiary in Marina Centre . The country also has liberal immigration policies. If the company wants to set up their regional head quarters in Singapore they are also provided with Financial Assistance.
Best Payroll Services In Central, SG
A key determinant for setting up a business in Marina Centre is the tax regime in force. In this regard Singapore boast of being one of the lowest tax jurisdictions in the world. Detailed below is an overview of the tax system and Payroll Services in Singapore.
Tax jurisdiction Singapore: Taxes are levied on a territorial principle i.e. companies and individuals are taxed on Singapore sourced income. In addition, the Foreign sourced income (branch profits, dividends, service income, etc.) are taxed when it is remitted or deemed remitted into Singapore unless the income was already subjected to taxes in a jurisdiction with headline tax rates of at least 15%.
Financial Reporting & Auditing in Singapore
A lot of people who do not understand business will tend to ignore accounting of the business. So why use accounting or accountancy for business?
I have a close friend (with an accounting background) who is married to a man who sells computer components and DIY desktops. She was working in an events management company at first, but because their marriage was on the rocks, she decided to resign from her job to help out with her husband's business.
At first, the computer business was getting less than 20,000 dollars profit per month, but since her entry into the business, the profit began to grow monthly. It eventually exceeded 300,000 dollars profit within her first year of taking over the business. When I asked her how she did it, she answered that all she did was to make sure the accounts was recorded daily. She also ensured that costs were kept under tight control.
Most important of all was that the husband / wife relationship grew as well.
My friend's story taught me a lesson. In running the day-to-day operations of a business, it is necessary to keep track and document all your income and expenses. If marketing and sales activities are always the top priority in any business, then accounting and bookkeeping statements will come as the second most important element.
I have been reading books about entrepreneurs outsourcing accountants and bookkeepers for their business transactions, and this decision has given them a great amount of extra time to focus on the marketing and sales aspects of the business.
Do not even try to Do-It-Yourself by getting accounting software especially so if you do not understand accounting. Even if you do understand accounting, you will not be able to focus on growing you business.
By engaging an outsourced accounting or bookkeeping firm, you will be able to cut down a lot of your costs. At the same time, a third party outsourced firm will be able to verify your business transactions for the whole work year, thus further decreasing the cost in auditing services.
Always have the attitude of outsourcing and not the DIY mentality. While we must try to be an all-rounder in our business, we must also acknowledge the fact that we are not always able to do everything. Instead, delegate tasks that are not directly generating in income to the business.
This is the new generation of doing business - knowing where exactly costs can be easily reduced.
In summary, if you do not take the time to properly analyse your accounts, you will be unable to assess how your business is doing.
With proper bookkeeping to ensure that every transaction is properly filed, you can be assured that generating a quarterly profit/ loss statement and monthly cash-flow statement will be easy and most important of all, accurate and up-to-date.
Benefits of Outsourcing Accounting Services to a Professional Accounting Firm
A lot of companies today fail to succeed primarily because they have done a poor job of keeping their financial records. Keep in mind this is one of the most important aspects of any business, big or small, that should never be neglected. Fortunately, there are a lot of bookkeeping companies which offer quality book keeping and accounting services. By hiring efficient, reliable and honest bookkeepers from these companies, you would be able to feel secure as to where every dollar goes in your business. You would also be able to keep track of all your assets and payables, without having to do a lot of work.
However, the process of choosing a top company who would be able to provide bookkeepers who are organized and experienced could be a bit hard as it would require a careful selection since they would be handling the financial documents and reports of your company. You can hire just one bookkeeper, which would be sufficient if you only require small business accounting or a team of bookkeepers. To check whether they would be competent enough, you can ask for their credentials and experience as well as if they have had any extensive training. You can ask about how long they have been providing bookkeeping services Singapore.
You could check their website for information on what type of services they can provide and you could read any reviews or testimonials that former clients have posted. If there are no reviews on their website, you could ask for the contact information of their current or previous clients to have good idea of what they are capable to do and how they are as a service provider.
You could also check whether or not they are aware of the newest software which are used for bookkeeping and accounting. This is necessary since a lot of the individuals and the companies who are offering these types of services make sure that they are technologically updated in order to stay competitive in the industry.