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After dealing with pre-incorporation requirements, Singapore companies will then need to prepare in dealing with post-incorporation matters. The Singapore law states that some companies are required to address some or all of the applicable statutory requirements throughout their entire existence in the country.
Post-incorporation matters are tasks that new companies need to complete before commencing their business activities. These tasks may either be related to regulations or the fundamentals of their operations. Check out our checklist on post-incorporation matters in this article.
A company must appoint a secretary within 6 months of incorporation. Nevertheless, it is best to do this at the time of company incorporation. Normally, one of the company directors can become a secretary. One of the employees from a corporate service provider (CSP) can also take this role.
A company will be only required to appoint an auditor if:
Due to these conditions, you have to think first if your company is actually required to appoint an auditor. Generally, 99% of newly incorporated companies in Singapore do not need to have an auditor.
The first board meeting resolution is typically circulated immediately after company incorporation. This meeting sets the roles and responsibilities of the different people in the company, discusses the company’s next steps, and answers any questions that shareholders may have. This event is important because it clarifies the decisions made by the board of directors.
Companies that are subjected to the regulation of Singapore authorities need to apply for business licenses or permits before fully operating. Examples of these businesses are recruitment firms, travel agencies, insurance companies, telecommunications, construction, hotels, restaurants, spas, medical clinics, event management, real estate, liquor distributors, moneylenders, banks, childcare centers and importers, publishing, and education.
Companies with an expected annual turnover of more than S$1 million and are projected to have the same revenue in the next 12 months must register for Goods and Services Tax (GST). A standard 7% tax rate is imposed on goods imported into Singapore and on the supply of goods and services in Singapore.
It may take some time for this liability to arise. Normally newly incorporated companies are not required to register for GST immediately.
A company needs to register and acquire a Central Registration (CR) number if its business activities include exporting and importing of goods. A CR number is used for all the import and export activities, transshipment permits, and other essential documents that are issued by Singapore customs. In this way, goods can come and go out of Singapore on the company account.
Note that if you are just running an import and export company but goods are not entering Singapore, then you do not need this registration.
The Central Provident Fund (CPF) is a mandatory pension fund scheme. This scheme requires employers to contribute a fraction of their employees’ salaries to their CPF accounts every month to build up their retirement funds. Employer contribution is compulsory for all employees who are Singapore permanent residents or citizens with income of more than S$50/month.
Companies are also required to determine their financial year-end (FYE). An FYE can be on any date within 18 months from the incorporation date of the company.
Keeping track of all the company expenses and income, also called bookkeeping, is required and must comply with the Singapore accounting standards. Bookkeeping can be carried out on a weekly, monthly, quarterly, or yearly basis, depending on the volume of company transactions.
A company must open its corporate banking account with a bank that would serve all its corporate banking needs, such as multicurrency, Letter of Credit, banking hours, bank’s location, and other essential services for its business.
Companies that are going to employ people, even small ones with only 1 or 2 employees, need to maintain a payroll system. The Ministry of Manpower is quite strict about this requirement. There are also some stringent rules about it, like proper printing of payroll slip, distributing it, and more. Moreover, there are many firms that provide this service. So in case you don’t want to do this yourself, you can engage an external service provider.
Keeping record of the income and expenses of a business since it started operating is important, hence the need for an accounting system/service provider. An accounting system/service provider can help monitor and manage the profitability of a business, as well as its financial position. It can also keep accurate records of company transactions, which is the mandate of many countries on tax regulations. It can be conducted monthly or annually.
Setting up an accounting software requires training and prior knowledge. Thus, some small companies seek help from external accounting agencies in outsourcing this function.
Companies that are going to hire foreign employees need to acquire an Employment Pass (EP) for them.
Post-incorporation matters seem difficult or tedious, especially in terms of their legalities. You would also need to ensure that you comply with them on a timely basis to avoid getting fined by ACRA. Therefore, it would be best to seek assistance from CSPs so as to avoid any legal implications or issues with your company. Our friendly and reliable team here at Epica Consulting Pte Ltd can help you accomplish all these post-incorporation requirements for your company. Contact us today!
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