Evaluate the budget

 

Regardless of the structure (Representative Office, Private Limited…) considered, it is necessary to evaluate the budget needed to run it.

 

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The Representative Office (RO) is the most economical solution. Indeed, the costs of a RO are limited to the placement of your employees in a Business Centre or domiciliation fees, and also registration and management fees. Furthermore, the Representative Office has no legal obligation in accounting, and no tax obligation due to zero reserve.

 

The Private Limited requires the following fees:

  • A Company Secretary: every Private Limited must benefit from the services of a Company Secretary in charge of the company’s administration. He is responsible for the statutory records, meeting minutes and judicial proceedings for the company. He prepares directors’ resolutions, annual and extraordinary general meetings’ (AGMs and EGMs) reports and the filing of annual tax returns documentation.
  • A Local Director: he must live in Singapore and may be an employee of the local structure, or a service provider who represents his client towards the Singapore authorities. He is in charge of the local entity’s strategy and management.
  • Bookkeeping: a Private Limited must have a complete accounting to justify the records’ accuracy. In Singapore there is no obligation to outsource this service, nonetheless, companies must respect a standardised format imposed by the authorities: the ‘’Annual Statutory Report’’. It includes financial statements (balance sheet, income statement and cash flow statement) and a report from the accountant summarizing the year’s activity.
  • You can also consider outsourcing:
  • The staff register for the calculation of each employee’s salaries and the preparation of pay slips.
  • The calculation of your company’s contribution - for your Singapore employees or PRs (Permanent Residents) - to the CPF (Central Provident Fund, equivalent of social security and pension).
  • The preparation of the ‘’Annual Return of Employee’s Remuneration’’ (report and calculation of income taxes).
  • The preparation and report of the corporate tax.
  • Registration and quarterly filing to the GST – Goods and Services Tax (equivalent to the French VAT- Value Added Tax) when the company reaches a turnover of 1 million SGD or before, on a voluntary basis.
  • Auditing is compulsory when the Singapore company is not considered as a “Small Company” or part of a “Small Group”. To be qualified as a “Small Company”: a private company needs to meet at least 2 of the 3 following criteria for each of the 2 financial years immediately before the current financial year:
  • i. Total annual revenue ≤ $10million;
  • ii. Total assets ≤ $10million;
  • iii. No. of employees ≤ 50.
  • If the company belongs to a group, criteria are the same but evaluated to the group’s level (consolidated financial statements).

 

 

To accurately estimate the budget, feel free to contact us for a personalised study.

 

 

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Human Resources in Singapore >>

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