The Companies Act of Singapore was amended in 2017 under the Companies Act 2017. When the Act was passed, it was passed in an effort to improve the transparency of a business’ ownership and control. The Act was put in place to conform to international norms, and it also: Enhances debt restructuring Improves business operation ease Reduces regulatory burdens Singapore’s lawmakers passed the Act to help make business operations more transparent, lowering the risk of misuse of corporate entities. The Financial Action Task Force recommended the changes that will help with: Threats to business i ..read more

Singapore has multiple business types to choose from when incorporating, but two of the most common business types are: Limited liability company A partnership Limited liability companies are also considered a private limited company or PLC. But, for the purpose of this article, we’ll be using “limited liability company,” or “LLC.” Legal Identity Differences Between an LLC and a Partnership Legal identities are very important because if a company has its own legal identity, it is separate from its shareholders and directors. An LLC is advantageous because a separate legal identity is given t ..read more

One of the biggest challenges start-ups face is acquiring the capital they need to move forward with their operations. Fortunately, government agencies in Singapore provide equity finance schemes and cash grants for eligible startups to help new firms raise capital. SPRING SEEDS SPRING SEEDS, or the Startup Enterprise Development Scheme, offers equity financing options to local startups with innovative ideas and products. As the investment arm of SPRING Singapore, SPRING SEEDS matches investments made by a third-party investor, with a limit of $2 million. The equity is distributed between the ..read more

The world is digital. There's an entire digital economy that the world connects to through personal computers, smartphones, tablets and an array of other devices. Economically, digital capital makes sense. New products and services are created all the time on the digital sphere. And you can break digital capital down into two main categories: Tangible assets Intangible assets Understanding the difference between these two forms of assets is the key to understanding digital capital. Tangible Assets and Digital Capital At the basis of a tangible asset is the ability to hold an item. Tangible a ..read more

Blockchain technology is going to change the way the world does business. The technology was originally designed for Bitcoin implementation, but it is ideal for all business transactions. Blockchain was developed in such a way that it doesn't rely on bitcoin, so it can be utilized with or without the presence of bitcoin. When blockchain is broken down into its most basic form, it's a digital ledger of transactions. Programmers can change blockchain to record anything of value, but for businesses, financial transactions will be the key most important use of blockchain. Distributed Database Stor ..read more

Entrepreneurs and business owners can invest in Singapore or start up a business through the Global Investor Program (GIP). The GIP program also allows investors to apply for Singapore Permanent Residence status. GIP is the brainchild of the Economic Development Board (EDB), and its goal is to encourage those interested in PR status to investment in Singapore. Permanent Residence status will allow investors to remain in the country while tending to their businesses. What Investment Options are Available? GIP offers two investment options: Option A: Invest a minimum of S$2.5 million in a new b ..read more

Thinking of running a business out of your HDB flat? Before you dive in, it’s important to understand what you can ­– and can’t – do. Whether you’re running an online marketing business or hosting tutor sessions from the comfort of your flat, there are rules that must be followed if you want to avoid getting on the wrong side of the law. You Can’t Transform Your HDB Flat Into a Brick and Mortar Shop While it may be okay to run an online store from your flat, running a brick and mortar shop from your living room is off limits. The HDB prohibits the use of flats as shops for the sale of physical ..read more

Self-employment is freeing. Being your own boss allows you to earn more money, and control the resources and growth of your business. But it also requires further diligence on your part. self-employed persons need to maintain strict accounting measures to avoid costly mistakes when filing self-employed income. Singapore requires all self-employed individuals to pay taxes on the net income of their business. Net income can be derived from subtracting business expenses from the company’s gross revenue. Filing taxes on your own can lead to costly mistakes when dealing with the IRAS. The most comm ..read more

The PIC grant often gets a bad reputation, but this useful scheme can help businesses ease their tax burden or take advantage of cash payouts to improve productivity. The Productivity and Innovation Credit, or PIC, grant provides tax deductions, cash payouts and other benefits to Singaporean businesses. The goal is to encourage businesses to try out new technologies or to boost productivity without having to resort to cheaper labor. Under the PIC scheme, businesses can take advantage of 400% tax deductions for qualifying expenses incurred when performing any of the Six Qualifying Activities. S ..read more

Singapore’s rules for real estate investment trusts (REITs) have changed. The Inland Revenue Authority of Singapore (IRAS) released a new guide to help investors understand how REITs will be taxed going forward as Singapore aims to strengthen its position as an REIT hub in Asia. Income Tax on REITs Under the New Guidelines Tax concessions on REITs have been extended through 31 March 2020. The current treatment for REITs allows for all trusts listed on the SGX to benefit from a myriad of tax concessions. A trustee of an REIT that distributes 90% or more of the income earned by the REIT to unit ..read more