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 Chinatown . 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 Tax Advisor In Central, SG
A key determinant for setting up a business in Chinatown 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 Tax Advisor 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%.
Company Incorporation - Singapore Vs Hong Kong
The main purpose of any business is to make profits and not have any losses. Therefore, it is important to ensure a cost effective accounting system is in place. Handling accounts, transactions and other financial details is not an easy task but with the services of outsourced small business accounting services these can be achievable. Hence, looking for outsourced accounting services would be positive to the business.
Sometimes running a small business can become burdensome at times and this is why small business accounting services can lower costs and yet remain effective for the business owner. It also offers accounting software that eases the whole process of making records and tallying them over and over again. However, we also know that most of the small business owners or for that matter any other business owner is not a qualified accountant, and that is why they need to hire the services of a professional to handle this. And small business accounting services is the right choice as it not only reduces time but also personnel resources.
Small business accounting services have professionals who specialize in providing business accounting services support to clients. The outsourced accountant will handle the small business accounting work of your business. As the business owner, you will like to be informed about all the work that is being done with regard to accounting and bookkeeping of your business, so that you know where your business is heading and if you are making any profits or not.
Having a professional accounting or Certified Public Accountant will help to ensure that your business' financial statements or books will be properly kept for tax purposes. In Singapore, you will need to file your financial statements with the authorities. Inadvertently, these financial statements will be used to assess your company tax. Surely you do not wish to run afoul of the law. Therefore, it would be wise to ensure your company accounts are properly kept.
The whole purpose of having a professional from small business accounting services will make things easier for you, so that you pay your tax on time. Besides taxes, the outsourced accountant also keeps track of all transactions which have taken place. The information will then be provided to the business owner who can use it for making informed and strategic decisions pertaining to the business.
Professional Accounting Bodies In Singapore
For some business owners, a third party accountant just seems like a waste of time and money. Sure, they can minimize the amount of time you spend calculating taxes and duties, but when you're high on time and short on financial resources, the overall cost of an accountant can seem to be too high to have any purpose. While this is sometimes true, for the vast majority of businesses accounting services have the exact opposite effect; you actually end up saving money by using them.
There are several different types of business currencies out there. Of course, money is known as the universal business currency, and it is for trading and purchasing. However, there's another currency that's worth just as much to millions of businesses: time. Without time, there's no way to achieve your annual sales goals, grow your business and meet your business targets. While the global recession has made more businesses starved for money, even during points of economic prosperity businesses are troubled by limited time.
This is where accounting services can prove highly useful. Hiring in-house accountancy staff is incredibly expensive, especially when you take the health costs, legal hiring expenses and time costs into account. While having extra employees adds manpower and time to your business, the cost associated with it is often too high. Accountancy services can save you both time and money in this regard. By minimizing the accountancy workload for your team, you can focus on more direct and important goals. Of course, by using an outside contractor rather than an internal employee, the amount of paperwork surrounding your accountancy dealings decreases tremendously.
Of course, the benefits of using accounting services for your business aren't just limited to time. Many people associate outside contractors and services with extra costs, but for accountants this can be a misguided and inaccurate way to judge them. Accountancy services can save you money, and the cost of using an accountancy firm is easily made up in the amount that you'll save on taxes, duties and government rates. Think about it this way - when you're taking care of your own taxes, you're in a financial world that's completely foreign. As such, some things get passed over and some boxes are left un-ticked. However, by using accounting services to manage and calculate your taxes, you're putting the job in the hands of an experienced specialist, who knows exactly what they need to do to save you money.
It's the old cost vs. time dilemma, and a lot of business owners fall for the wrong metric. Time saved is money saved, regardless of whether it comes with a direct cost or not. If your business has the potential to earn $1000 per hour with your full attention, spending your time on accountancy tasks that can be outsourced for just a fraction of that is a waste of both time and money. Opportunity cost factors for a lot in business, and by focusing on what is important you'll end up saving a bucket load of income.
So next time you're about to embark on a complicated tax mission using your internet employees, or even your own time, think about the opportunity cost involved. Juggling taxes and payments with a major project could end up costing you the quality of both, which means extra costs on both sides. Whenever possible, stick to the direct services of your business, and let your accounting services provider take care of the rest. You'll save money, save time, and grow your business without having taxes, payments and accounts bother you.