Q. After the Singapore company is formed, is there anything else I need to take care of before I can start my business activities?

A. After your company has been formed, you are ready to start your business activities immediately subject to the following guidelines:

1. If your business requires one or more licenses, you may need to obtain the relevant licences first before you can commence your business activities. Fortunately, very few business activities in Singapore require business licenses. To find out if your particular business requires a license, please visit http://www.business.gov.sg/EN/StartingUp/LicencesNPermits/index.htm. We can assist with application of relevant business licenses if required for your business.
2. You should open a bank account soon after your company formation. This will help you with injecting funds into the company, receiving payments from customers, and paying your company bills. We can assist with the bank account opening process.
3. You will need to decide if should register for Goods & Services Tax (GST). GST registration is not mandatory unless your annual turnover exceeds S$1 million. We can help you register for GST if required.
4. Subsequent to formation of Singapore company, you will need to obtain a Central Registration (CR) number if your company plans to import goods into or export goods from Singapore. The CR number is for use in all import, export and transhipment permits, certificates and any other documents issued by the Singapore Customs. We can help obtain a CR number for your company if required.
5. You should get basic stationary and marketing materials ready for your company as soon as possible. These include such items as business cards, letter heads, website, brochure, etc. If required, we can help you with all these after formation of your Singapore company.
6. If you plan to bring any foreign employees, you will need to apply for their employment pass (EP) before they can commence their employment with your newly formed Singapore company.

Q. We have just completed the Singapore Company Formation procedure. We are now thinking about hiring staff. What kind of deductions are required when paying salary to our employees?
A. See below:

For local employees (Singapore Citizens and Permanent Residents)
You will need to contribute a specified percentage amount of their salaries to Central Provident Fund (CPF). You are required to pay the employer’s and employee’s share of CPF contributions monthly for all local employees at the rates set out by CPF board. You have a grace period of 14 days to make payment of CPF contributions after the end of the month for which CPF contributions are due. For more details, please visit www.cpf.gov.sg.

For Foreign Employees
For foreign employees, CPF contributions are not required. You just need to pay the agreed upon salary to your foreign employees and that’s all.

No tax deductions are required either for local or foreign employees. The employees are directly responsible for their personal taxes.

Q. Do you provide bookkeeping and payroll services?
A. Yes, you can subscribe to our bookkeeping and payroll services after your Singapore company formation is complete. Depending upon the volume of transactions, we can provide bookkeeping either on a weekly, monthly or quarterly basis.

Q. Can we increase paid-up capital after formation of the company?
A. Yes, the paidup capital can be increased anytime after your company formation formalities have been completed and the bank account is open. The procedure for increase of share capital is the following:

• You will need to provide us with evidence (credit advice or bank statement) of capital injection into the company’s bank account.
• You will also need to give us the details of who should be issued the new shares.
• We will prepare the necessary docs and send them to you for signing.
• Upon receipt of the signed docs, we will file the documents with ACRA and update the share register.

Q. Is the paidup capital locked for any period of time after the formation of Singapore company?
A. You can start utilizing the paid-up capital to operate the company immediately. There is no such requirements that it must remain untouched for a specified period of time after the company formation.

For further information or assistance, please call us:

Hong Kong Office: +852 2341 1444
Singapore Office: +65 6295 2884
Shenzhen Office: +86 755 8268 4480
Shanghai Office: +86 21 6439 4114
Beijing Office: +86 10 6874 8420

or send email to enquiries@bycpa.com.