Given its robust economy and educated talent pool, Singapore has been crowned as one of the most attractive nations for foreign direct investment (FDI) at a global scale. Notably, the country is also constantly ranked as one of the easiest places to do business. Moreover, it is common for major global organizations to establish their headquarters here.
Registering a Company and Establishing an Entity in Singapore
All businesses in Singapore must be registered with the Accounting & Corporate Regulatory Authority (ACRA). In particular, foreign companies setting up brands for their business in Singapore have to appoint two local representatives to act on its behalf. In addition, these representatives must be Singapore citizens, permanent residents, or foreigners with employment or dependent passes.
Foreigners do not have to obtain government approval to do business in Singapore. In addition, the Singapore government permits foreign companies to have 100% ownership. However, banks and other financial institutions will require approval from the Monetary Authority of Singapore (MAS).
The Companies Act (CA) governs all businesses registered in Singapore. By and large, businesses that operate in banking, insurance and stock broking industry and several others would require special licenses.
It is not necessary for companies to pay employees or authorities though a local bank account.
Working Hours in Singapore
Singaporeans usually practice Monday to Friday work days in a week, with an eight hours a day and 40 hours a week. However, some companies operates a 5.5 day week, from Monday to Saturday.
Facts about Singapore
Full Name: Republic of Singapore
Population: 5.40 million (Google, 2017)
Official Languages: English, Mandarin, Malay, Tamil
Religions: Taoism, Buddhism, Islam, Christianity, Hinduism
Monetary Currency: Singapore dollar, SGD
Internet Domain: .sg
International Telephone Code: +65
Income Tax & Social Security in Singapore
Various provident funds have made up Singapore’s social security system. As such, all employees must leave aside certain percentage of their earnings. Moreover, employers also have to contribute to this sum, where it is ultimately distributed to the employee personal protected account—in which they are only used for specific purposes.
Tax Authorities, Inland Revenue Authority of Singapore (IRAS) is a statutory board under the Ministry of Finance of Singapore. It is responsible for collecting personal income tax, corporate tax, property tax, goods & services tax, betting taxes and stamp duty.
Different tax rates apply to tax-resident and non-resident individuals in Singapore. Nonetheless, all of them are required to file a separate tax return every calendar year on all his or her income. This includes gains or profits from a trade or profession and earnings from employment.
Furthermore, the law requires all employers to prepare tax forms for all employees employed in Singapore by March 1 annually.
The latest legislative information is continually updated on Juztalent ePayroll. All in all, we ensure that our clients stay worry-free from statutory compliance. This is not to mention that our employee management and payroll services are timely, accurate and customer-oriented.
For more details, do contact our sales team at +65 6532 2467 or [email protected]