Since the last decade, Singapore has been quite a popular destination amongst the entrepreneur community. And that’s mostly because of how well the business ecosystem of the nation works.
Because of this reason, the World Bank had ranked Singapore in second place in their “Ease of Doing Business” list in 2019. However, here’s the thing.
Even though Singapore offers an excellent platform to incorporate your business, you will still need to ensure that you’re following all the regulations.
Or else, the authority of the nation might get your business license revoked. And in most cases, you will also be denied the opportunity to open yet another business in the country.
So, it’s best to know the technicalities before delving in the deep waters.
Business Laws in Singapore
In this section, we’ll talk about three different business laws in Singapore and how they tend to work in the entire ecosystem. So, let’s get to it.
1: Filing an Annual Return Documentation
The ‘Annual Return’ is a type of information documentation that you need to lodge in an yearly manner with ACRA. It will contain some of the important elements of an organization, like –
- The name of the secretary, director, and the shareholders.
- The date when the final financial statement was released.
- The types of insurances you have implemented.
This type of documentation is, in general, submitted by an officer designated by your company. But, if you don’t have anyone else to take care of it, your registered filing agent can do it too.
2: Filing All of Your Taxes
The taxation system of Singapore is extremely efficient and business-oriented. The rates of the same are quite low, and you can get a range of various incentives too. Furthermore as it follows a single-tier business tax system, it doesn’t come with any technicalities either!
However, if you want to stay away from the crude eyes of the Singapore government, be sure to file your taxes quickly. This should be done in a yearly manner. Make sure that you are offering the taxes at the right time and keeping them on your records accordingly.
3: ECI or Estimated Chargeable Income
Every Singaporean organization should file their ECI (Estimated Chargeable Income) within 3 months after the financial year ends. And this should be done each and every year accordingly.
ECI, in essence, is the estimated income of an organization after the tax has been deduced from their overall revenue. You should submit the same through an IRAS-provided ECI form.
The Singaporean law will exempt your company from reporting your ECI if –
- The ECI is nil or non-existent.
- Your average revenue has not and does not exceed USD one million.
In most cases, the entire process is done with an accountant, as it requires you to consider all of the technicalities of the financial department. And there’s no room to make any mistakes here.
The Final Say
When it comes to opening a business and growing accordingly, nothing else can be as useful or beneficial as Singapore as a business-focused nation. Yes, the laws are quite stringent here.
But, in most cases, they tend to work in your favor and help you grow your business. Anyway, we will still ask you to take the help of an organization, like MBIA.
With their knowledge regarding the technicalities, they can comfortably help you with what you are dealing with and take care of everything.
The amount they might charge for offering their services is quite low as well. Therefore, if you are looking for some help, don’t think twice before opting for them.