Post Incorporation Considerations
What to Know After Incorporating Your Business
Congratulations on your new Singapore incorporated company!
After successfully incorporating your company in Singapore, there are certain things that you need to know further about the post-incorporation phase of your company. This guide serves as an overview of the important information you need to know after incorporating your business in Singapore:
Registered Office Hours
You must have a registered office address, and your office must be open to the public for a minimum of three hours per day during normal business hours on weekdays.
Your business registration number issued by ACRA must be on all letterheads, invoices, billings or other documents used for official business communications.
If your business activities involve import, export, and transshipment in and out of Singapore, you will need to register your company with the Singapore Customs and obtain a CR Number or commonly known as Custom Registration. The central registration number is mandatory for Singapore companies or organisations engaged in trading activities.
Opening a Corporate Bank Account
Once your company is successfully incorporated, you can open a corporate bank account with any of the major banks in Singapore. Most of these banks require you to be present when you open an account with them. If you’re unable to be present for this administration, you should choose a bank that allows you to open a corporate bank account without your visit to Singapore.
You should explore the features and facilities offered by different banks and decide on the one that best meet your business needs.
The bank you chose will require your company M&A, and incorporation certificate. Some banks, however, may require further documentation such as bank reference and proof of residence.
Increasing Paid-Up Capital
Paid-up capital is the total share capital of the company which as been paid in full and issued to shareholders. You can increase your company’s paid-up capital anytime after your Singapore company incorporation.
To do so, you’ll first need to raise desired funds and place it into your company’s bank account and send us a copy of the bank deposit slip reflecting the capital injection.
Once we receive the proof of capital injection, we’ll prepare the documents for you to be signed and lodge them with ACRA. You’ll then receive an updated company profile showing the revised paid-up capital for your Singapore company.
Non-cash considerations such as fixed assets can also be used if you have sufficient evidence of valuation of the assets provided.
Licences and Permits
Some business activities in Singapore are subject to regulation by government authorities. Even if your company has been registered, you cannot begin operating a business in Singapore unless you have the necessary approval or licence from relevant government authorities.
Private schools, video companies, travel agencies, liquor distributors, moneylenders, banks, financial advisers, childcare centres as well as importers, wholesales and retailers of liquor licenses, among others, are some examples of business that need permits to operate.
Goods and Service Tax (GST) Registration
Goods and Services Tax (GST) is a tax on the supply of goods and services made in Singapore by a taxable person in the course of any business carried on by him, and on the importation of goods into Singapore.
Every Singapore business must register for GST if their annual taxable turnover is more than SGD 1 million, or they are currently making taxable supplies and the annual taxable turnover is expected to be more than SGD 1 million.
Goods and services provided in Singapore, as well as goods and services provided to Singapore from overseas are regarded as taxable supplies. A Singapore business must register for GST within thirty days from the day the annual taxable turnover is more than SGD 1 million.
You can also choose to voluntarily register for GST and enjoy the benefits of claiming input tax incurred during the course of your business, particularly when your business involves export goods and services (otherwise known as zero-rated supplies).
After registration, businesses must charge and account for GST at the prevailing rate, known as an output tax. GST-registered businesses can also claim the GST incurred on their goods and services purchased under certain conditions.
GST is also levied on the import of goods from overseas, which also claimed as input tax. Singapore Customs is responsible for collecting the import GST.
If your newly incorporated company will be engaged in export, import, or transhipment activities in Singapore, you’ll have to register the company with the Singapore Customs as an importer, exporter, common carrier, or others.
The Singapore Customs will issue a Central Registration (CR) number for your company. This CR number is mandatory for all Singapore companies and organisations engaged in trading activities.
The Customs Account is valid for as long as the entity remains registered with the Issuance Agency. There is no need to renew registration. When company closes or ceases its operation the registration must be duly cancelled.
Central Provident Fund (CPF) Registration
The Central Provident Fund, or CPF, is a compulsory pension fund scheme in which the employer and employee contribute a percentage of the monthly salary to the fund. CPF contribution by the employer is mandatory for all local employees who are Singapore citizens or permanent residents earning more than S$50 a month.
The maximum CPF contribution rate for employer and employee is 14.5% and 20% respectively. This percentage can be lower depending on certain factors such as the employee’s age, permanent resident status, etc. CPF contribution for foreign employees is not required.
Skills Development Levy (SDL)
The Skills Development Levy (SDL) is collected for the Skills Development Fund and used by the Singapore Workforce Development Agency (WDA) to provide training incentives for companies to improve their employees’ skills.
All companies required to contribute a fee to the skill development fund. SDL contribution is payable by employers for all employees up to the first $4,500 of gross monthly remuneration at the rate of 0.25% or $2, whichever is higher.
Employers must also pay SDL for all casual, part-time, temporary, and foreign employees. In the event of late payment, a penalty of 10% per annum is imposed on the outstanding amount.
You can conveniently pay your SDL together with your CPF contributions as the CPF Board collects the levy on behalf of WDA. All payments must be made by the 14th of the preceding month.
SDL takes a very serious view on this training fund, therefore employers who falsify or mislead information relating to the payment of the levy will be fined, imprisoned, or both.