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 Punggol New Town . 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 Business Registration In North-East, SG
A key determinant for setting up a business in Punggol New Town 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 Business Registration 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 Registration Options in Singapore
The Accounting and Corporate Regulatory Authority (ACRA) of Singapore regulate the businesses, public accountants, and the accounting services in Singapore. ACRA, unlike other government regulators, also facilitates for the promotion of these entities.
As a national regulator, ACRA demands strict statutory compliance from these entities. For this reason, Singapore businesses are better off with the assistance of accounting services in Singapore.
Compared to other countries, it is easier, seamless and effortless to open a company in Singapore. Although it depends on individual choices, ACRA advises foreigners to take assistance from external firms offering Singapore company registration services. There are many firms in Singapore offering incorporation services along with many other corporate business services like, accounting, auditing and taxation to different national and international clients.
Accounting Services for Small and Medium Enterprises in Singapore
Singapore's taxation year or the Year of Assessment (YA), starts on 1 January and ends on 31 December. However, in case of many Singapore companies, the end of their financial year does not coincide with stipulated date, i.e., 31 December.
These business entities still have to complete their financial reporting and tax filing, as per the due dates issued by ACRA and IRAS (Inland Revenue Authority of Singapore). They need to host an annual general meeting and table their financial statements for the review and approval of their shareholders.
Genuine and accredited accounting firms in Singapore assist its clients to maintain their books of accounts, by offering their flawless and punctual bookkeeping services. These firms ensure that each and every financial transaction is entered and accounted for. These firms also offer preparation of bank reconciliation, XBRL, and directors' reports, along with the financial analysis on weekly, monthly, quarterly and annual basis.
The well-known CPA firms, while preparing the financial statements of clients prepare a balance sheet, profit and loss statement and cash flow statement. The 'books of account' maintained by the client, plays a major role in preparing these statements. Most of the entries and inputs in these statements are retrieved from what is found in the client's books of accounts. These financial documents are prepared in compliance with the Singapore Financial Reporting Standards (SFRS). In addition to that, different types of transactions are treated as per the set principles and governing practices of the governing bodies.
In order to offer unmatched and high-quality accounting and auditing services to the clients, firms offering accounting services employ only experienced and certified auditors. These professionals are trained to structure their auditing reports on the data contained in the books of accounts, submitted by clients for inspection. After the auditing reports are prepared and authenticated by the prime service provider, these reports are submitted to shareholders, investors, employees, management and the government regulators for analysis and approval. A comprehensive auditing report serves as a definitive medium for the client, to take speculative decisions about the future course of their business. Therefore, preparing such report, from a well-known and qualified audit firm in Singapore is much more necessary.
After understanding the importance and necessity of well-structured audit report, business management proceeds to hire an external auditing firm for conducting internal audits of their company. The reports generated, allow them an insight into the effectiveness of processes, internal checks and methods that are in place in the organization. On the other hand, the shareholders of the company are also empowered to hire audit services in Singapore, for conducting parallel external audits for them.
The meticulously prepared financial reports are essential for gauging the financial health of a company. These reports also reveal its weaknesses and help the management in taking preventive measures against them. Remember, apart from exempted companies, every single Singapore business must file their financial statements with the ACRA.
It is the duty of the corporate business services firms based in Singapore to advise and help their clients with accurate Singapore tax filing. ACRA specifically mandates; that it is a duty of the business service-providing firm to educate and advise its clients on GST registration in Singapore, GST filing, ECI filing, Withholding tax and other taxes. Most importantly, it assists the client in the careful preparation of its corporate income tax.
The CPA's working at these firms usually takes into account the tax rebates, incentives, deductions and exemptions that client qualifies for, to incorporate those relevant details in the financial statements. The firm also assists Singapore businesses in complying with the ACRA's XBRL filing requirements, by converting their business data into the XBRL format.
Why Use Out Accounting Or Accountancy For Business?
Business disputes are an inevitable fact of life. In a competitive world-be it with local business transactions or on the other side of the world in Singapore-business law is a necessary tool for running an enterprise. A small business attorney is often as much a partner to a corporation as are tax accountants, marketing consultants, and human resource recruiters.
In the U.S., business law is largely the same. Business laws are written to establish fairness and a means of resolving disputes. The process is orderly and predictable, even if the outcomes are not always assured. Following is the process your attorney guides you through in business-to-business litigation:
- ADR (Alternative Dispute Resolution) - This is a court-supervised approach to avoiding litigation, seeking to resolve the dispute in a speedy, efficient and inexpensive way. Both parties must agree to participate in this process.
- File the claim - Your attorney formally makes this filing to the court and the defendant, stating your dispute and asking for a specific settlement.
- Discovery - Both plaintiffs and defendants must be amenable to allowing business records to be examined by the other party in gathering evidence. Employees and agents may be required to provide testimony in advance as well.
- Proceed to trial - If pre-trial attempts at settlement are unsuccessful, the plaintiff and defendant must meet in court to make their arguments. The court will render its judgment at the close of the trial.
- Appeals court - If a matter of how the trial was conducted is in dispute, or new evidence surfaces that is germane, a higher court can rule on the judgment. At times, decisions can be reversed.
Note that the ADR approach comes with its own set of rules. Impartial, neutral parties that include mediators, case evaluators, and arbitrators must facilitate the discussions and resolution. The mediation focuses on needs and interests instead of rights and positions, whereas the settlement is ultimately voluntary. Non-binding arbitration results in rendering a decision, but either party can reject the decision and choose instead to pursue a trial in court.