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 Ghim Moh . 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 Ghim Moh 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
If you aspire to work in the corporate finance department of an organization, you are part of a team that is involved with collating data that form the solid basis for making capital investment decisions of a company. Some of its primary tasks include supplying figures that will support or oppose investment proposals. A corporate finance job entails management of company assets and liabilities, financial forecasting, inventory control, budgeting, and auditing.
The two key functions of corporate finance include:
- Accounting - this involves recording of the day-to-day transactions of the company. Its tasks include payroll, tracking of company expenses, computation of revenue and balancing of the company's accounting books.
- Finance - this is concerned with the management of the company's assets, liabilities, and investments. It is also responsible for the monitoring of the company's financial performance and analyzing its revenue and expenses in order to ensure that the company's capital is used in the most effective way possible.
Finance and accounting may assume different roles in an establishment, but they are geared towards a common goal which is to maximize the company's potentials for financial advancement.
Primary Requirements of Finance and Accounting Jobs:
Knack for Numbers
Finance and accounting professionals breathe and eat numbers everyday in their professional lives. You should be good in mathematics in order to become an effective member of the finance department.
Strong Analytical Skills
Jobs in finance involve forecasting, analysis, and problem solving. They require you to understand patterns of the company's expenses, debts, receivables, cash flow and profits. These are all represented by numbers. You need to put them together to produce a sound basis of the company's business decisions.
Attention to Details
This is highly necessary because it can help to optimize the company's performance in the management of its finances. The company relies on the numbers you provide as its basis for formulating business plans and decisions.
You should be able to spot errors, unusual costs, and unnecessary expenses. These are important things you can bring to the attention of top management for appropriate action.
A degree in finance or accounting is the basic requirement for a career in corporate finance. If you want to stand out in the profession, you may proceed to advanced studies.
A masters' degree in business administration or a certification in CPA or CFA will help to give you the best in a rewarding career. These will make you more attractive to companies and increase your chances for employment or promotion.
These are some of the essentials for getting a career in corporate finance. Have them and you will discover a world of business and corporate opportunities.
Professional Accounting Bodies In Singapore
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. 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.
Branch Office - Registration of the branch office is done by ACRA and it is treated as an extension of the foreign company. It is the least popular option with foreign companies because
- Head office accounts have to be submitted for taxation purposes. Many companies may not be comfortable doing this.
- Head office bears all the liabilities of the actions of branch office
- Branch office cannot claim local tax benefits
The name of the Branch Office and the foreign office must be same and should be approved by ACRA before registration. Branch office has to appoint two agents that are resident in Singapore. The Branch office can repatriate all its earnings and capital. Only that part of earnings derived from local operations are taxed at local tax rates.
Subsidiary Company - This is the most preferred option for setting up business by the foreign companies because:
- Its liabilities are not transferred to parent company. It is considered a separate company.
- It enjoys the local taxation benefits.
- It can have a local name which is different from the parent company.
One or more directors need to be appointed and at least one director has to be a local resident.
Representative Office - It is used for having a presence in the country while not conducting any business activity. It does not have any legal status and cannot enter into any contracts.
- It can undertake promotional activities for the parent company
- It can negotiate but cannot conclude on deals
- Parent company bears liability for activities of the office.
- It must be staffed by at least one representative from the head office
International Enterprise Singapore (IE Singapore) is the registration authority for Representative Offices for manufacturing, business services, commerce and other sectors. Banking, finance, insurance needs to be registered with the Monetary Authority of Singapore (MAS).