A lot of both local and foreign entrepreneurs chooses to form a Singapore company for several reasons.
A Singapore company offers several benefits to owners, or more correctly referred to as shareholders, especially when it comes to tax advantages, bankruptcy protection, and limited liability to business-related debts.
While incorporating a company in Singapore provides countless of advantages, it is important to note that shareholders are required to perform certain legalities and formalities in order to prevent financial abuses particularly by the management, tax evasion, and other unscrupulous dealings.
These are the legal formalities which must be performed by any Singapore corporation:
* Appointment of at least one director who is a local resident
While there are no limits on the number of directors, it is a requirement for any corporation to appoint at least one director who is a local resident or holder of Singapore Employment Pass, Singapore EntrePass, or Singapore Dependant Pass.
* Appoint a qualified company secretary
Within six months of incorporating a company, shareholders should appoint a qualified secretary who must be a local resident and has a professional knowledge in compliance matters stated by the Singapore Companies Act.
* Submission of the directors' report
This report consists the directors and shareholders' interests and accounts; the accounting policies adopted by the corporation; disclosure of the company's operation; and financial statements (such as income statement, balance sheet, etc.).
* Submission of the corporation's financial year-end documents
According to Rikvin, which is the leading Singapore business solutions provider this document will be used as the basis for the deadline for the submission of the accounting documents and financial statements.
* Annual returns
This document, which consists of a corporation's financial accounts, must be submitted to the Accounting and Corporate Regulatory Authority (ACRA) one month after the annual general meeting of a company.
* Annual general meeting
This meeting must be held within 18 months of incorporating a Singapore company. After this, the succeeding meeting must be held once every fiscal year (but should not be more than 15 months apart).
* Tax returns
This should include the directors' report, certain tax computations, and "Form C" which must be submitted earlier than 31 October.
* Form C
This form must be submitted every June after the end of a fiscal year. But this deadline can be extended until December if a corporation will submit its ECI within three months after the accounting period has ended.
* Estimated chargeable income (ECI)
In order to submit this requirement, a corporation should provide these following reports: financial year-end, estimated profits, and estimated revenue. By sending such information, the authorities can estimate a corporation's chargeable income for the "year of assessment."
* Audited or unaudited accounts
The Inland Revenue Authority of Singapore (IRAS) allows a private limited company with less than $S5 million of turnover to submit its unaudited accounts. But for the branch offices of foreign-owned companies, they are required to submit even the parent's audited financial statements.
* Registration number
A company will have a specific registration number issued by ACRA which must be present on its letterheads, invoices, billings, and documents used for communications.
AsiaBiz is a Singapore company registrar and has successfully helped foreign and local entrepreneurs register a Singapore company.