For private limited companies, it is delivered in a paper format whereas public listed companies issue an electronic version. There are many situations in which share certificates are delivered. Among them, it is an important step during the incorporation of a new company or when a shareholder is investing in an existing company. In this article, we aim to provide clarification on various aspects related to share certificates, which include: 

• Share certificates in private limited company   
• Share certificate issuance
  • Share capital increase and allotment of shares  
  • Transfer of shares
  • Loss of the share certificate
• Time limit for the issuance of the certificate 
• Conclusion 
• FAQ

Share certificates in private limited company  

A share certificate is a document issued by the company to its shareholders, that evidences their ownership of shares in the company. In Singapore, it is prepared and issued by the company secretary and often kept at the company secretary offices to prevent their loss. 

It usually contains the company’s name and legal address, the authority under which it is constituted, its registration number, the shareholder’s name and address, the number and class of the shares that are being issued, the date of issuance of the certificate, and whether the shares are fully or partly paid up (and the unpaid amount if any). Therefore, a shareholder does not necessarily need to directly pay the full amount of shares to have a certificate. 

Share certificates are not required since 31 March 2017 to use the common seal to be executed in Singapore (41A Companies Act), if the procedure in section 41B of the Companies Act (CA) is followed. Instead Under section 41B, a company may execute documents only by signature: 

• On behalf of the company, by a director of the company and a company secretary; 
• On behalf of the company, by at least 2 directors of the company; or 
• On behalf of the company by, a director of the company in the presence of a witness who attests the signature. 

Share certificate issuance 

Share certificates are generally issued on 3 occasions: the allotment of shares, the transfer of shares, and the loss of the share certificate, with different procedures for each. 

Share capital increase and allotment of shares 

To increase its share capital, a company issue new shares to existing or new shareholders.  The board of directors must first get the shareholders’ approval in a general meeting before issuing the shares.  

After the approval, the company secretary must prepare the relevant documents, lodge the record with the Accounting and Corporate Regulatory Authority (“ACRA”) within 14 days, and then prepare the new share certificate(s) with details about the shares allotted (number of shares, amount paid or unpaid, class of the shares, personal information of the company’s shareholder(s)). 

Transfer of shares 

A shareholder may transfer or sell their shares to an individual, a corporation, or back into the company, either wholly or partly. In the first case, the shareholder will cease to be a shareholder, and in the second, he will remain a shareholder but with fewer shares.  

The company secretary will have to prepare the board resolution, the instrument of transfer and the stamp duty acknowledgment from the Inland Revenue Authority of Singapore (“IRAS”). The secretary will also lodge the record with the ACRA, before canceling the original share certificate(s) and preparing the new one(s). If only a portion of shares is being transferred, the original certificate will be replaced by two new share certificates, one for the transferor and the other one for the transferee.  

Loss of the share certificate 

In the case of loss of the share certificate, the shareholder must inform the company by submitting a statutory declaration. The company secretary can then provide a duplicate copy of the share certificate, after preparing a board resolution to record the loss and canceling the previous one.  

If the value of the shares is greater than S$500, there are additional requirements for the shareholder, such as publishing an advertisement in the newspaper stating the loss of the certificate and that the owner will apply for a new one within 14 days, and providing a bond for an amount equal to the shares’ current market value to indemnify the company against loss if the original certificate is produced. 

Time limit for the issuance of the certificate 

The time limit depends on whether the certificate is issued after an allotment of shares or after a transfer of shares. In the first case, the share certificate must be delivered to the shareholder within 60 days after the shares are allotted. In the second case, it must be delivered to the shareholder within 30 days from the date the transfer was lodged with ACRA. 

Non-compliance with these deadlines constitutes an offense under the Companies Act, resulting in a fine not exceeding 1,000 SGD and a default penalty. 

Conclusion 

A share certificate is first issued when incorporating a company. Thereafter, it can be issued during a share capital increase with allotment of new shares or during a transfer of shares. If an existing share certificate is lost or destroyed, the company secretary can also provide a duplicate copy. The issuance of such a document is important because it constitutes proof that a shareholder is the owner of the whole or part of the shares in a company. 

FAQ 

1. What kind of shares can be issued by companies? 

A corporation has the option to issue various kinds, or “classes,” of shares. These can include: 

• Ordinary Shares: Common type with voting rights but no guarantee of dividends. 
• Preference Shares: Offer fixed dividends, priority in dividend payments, and capital return during liquidation. 
• Redeemable Preference Shares: Can be repaid by the company on a specified date or at directors’ discretion, typically using proceeds from fresh share issues. 
• Convertible Preference Shares: Can be converted into ordinary shares at a predetermined price, usually after a fixed term. 
• Treasury Shares: Owned by the company but can’t be voted or receive dividends. Limited to 10% of total ordinary shares; excess must be disposed of within 6 months. 

2. Who prepares the share certificates in a company? 

The company secretary handles share certificate preparation, maintains the shareholders’ register, and ensures legal compliance. 

3. When do I need to issue share certificates? 

Besides the initial incorporation of the company, share certificates are issued in the following instances: 

• When shareholders transfer shares internally. 
• When shareholders transfer shares externally. 
• When the company issues new shares. 
• When a shareholder misplaces their share certificate. 
• When a shareholder unintentionally damages the share certificate. 

4. What details does a share certificate have? 

The certificate generally contains information such as the company’s name, registration number, address, the shareholder’s name and address. Additionally, it outlines the class and category of shares owned, along with their corresponding nominal value

5. Do share certificates in Singapore have to be physical documents? 

While it’s not legally required, companies commonly choose to issue physical share certificates to serve as tangible proof of ownership. 

6. How many share certificates do I need? 

In Singapore, every shareholder has the right to obtain a minimum of one share certificate representing their entire holdings. However, it’s advisable to provide multiple copies for convenience or in cases involving multiple shareholders. 

7. Do I have to pay for all shares upfront? 

Not necessarily. 

Shareholders can choose to pay for shares either fully or partially. If fully paid, the shares belong entirely to the shareholder. However, even if only a portion of the total shares is paid for, the shareholder still receives a share certificate indicating the total shares purchased. The certificate must specify the payment status to minimize misunderstandings and legal consequences. 

The post Share Certificates in Singapore: Overview and Legal Considerations  appeared first on MyBusiness in Asia.

Returning to France this time, Maxime J. and Bérangère BASSEN had the pleasure of representing MBiA, connecting with French companies, and sharing their perspective and insights on Singapore’s thriving business landscape.

Accompanied by co-speakers from the French Chamber of Commerce in Singapore (FCCS), and the Singapore Economic Development Board (EDB), the presentations shed light on the opportunities to do business in Singapore and Southeast Asia: by 2040, ASEAN is set to drive over 50% of global GDP, fueled by a digitally connected, and youthful population, leading to significant growth in the middle and affluent classes.

Individual B2B meetings were also organised to advise local French companies interested in exporting and expanding their businesses into new markets!

A big shoutout to Région Pays de la Loire, CCI Pays de la Loire, CCI International Nouvelle-Aquitaine, and CCI Bordeaux Gironde for their warm welcome and great organization.

Stay tuned for more adventures ahead!

The post Business trip to France: Exploring Business Opportunities in Singapore and Southeast Asia appeared first on MyBusiness in Asia.

Singapour est un pays dont la stabilité économique et politique ainsi que le droit des affaires sont parmi les plus favorables aux entreprises.  

Singapour est aussi l’une des destinations les plus attrayantes pour les entreprises et les investisseurs, grâce à son taux d’imposition des sociétés faible et compétitif, à son vaste réseau de conventions fiscales et à ses diverses incitations et exonérations fiscales.  

Dans cet article, nous présentons une vue d’ensemble du système d’imposition des sociétés à Singapour, couvrant les principaux aspects et caractéristiques qui affectent les entreprises locales et étrangères opérant dans la ville-État. 

Taux d’imposition des sociétés et calcul 

Le taux de l’impôt sur les sociétés à Singapour est de 17% sur les profits d’une société. C’est-à-dire que l’impôt s’applique sur le profits nets après déduction de toutes les dépenses et pertes admissibles.  

Taux d’imposition unique de 17% 

Ce taux s’applique aux sociétés résidentes et non résidentes, indépendamment de leur taille ou de leur secteur d’activité. Toutefois, certains facteurs peuvent réduire le taux d’imposition effectif d’une entreprise, tels que l’exonération partielle d’impôt, le dégrèvement d’impôt et les incitations fiscales. 

L’exonération d’imposition partielle : 

Elle permet à une entreprise d’exonérer 75% des premiers 10 000 dollars singapouriens et 50% des 190 000 dollars singapouriens suivants de son revenu imposable, ce qui se traduit par un taux d’imposition inférieur de 8,5% pour les premiers 200 000 dollars singapouriens de revenu. 

Les incitations fiscales : 

Services des régimes spéciaux qui accordent un taux d’imposition inférieur ou nul à certains types d’entreprises ou d’activités, tels que les start-ups, la recherche et le développement, les services financiers, le secteur maritime et les sièges régionaux. L’éligibilité et les conditions de ces incitations varient en fonction de la nature et de l’étendue de l’activité. 

Abattement d’impôt sur les sociétés à Singapour pour 2024 (CIT Rebate & CIT Gash grant) 

Annoncé dans le Budget 2024 de Singapour, un abattement d’imposition sur toutes les sociétés de 50% et une subvention de 2 000 SGD pour les entreprises avec des employés locaux sera disponible pour l’année fiscale 2024. Le maximum d’abattement et de subvention sera de 40 000 SGD pour cette année fiscale, le minimum sera de 2 000 SGD. 

Abattement fiscal de 50% sans contrainte de résidence fiscale

Exemptions du taux de l’impôt sur les sociétés 

Outre les incitations fiscales, certains revenus de source étrangère sont exonérés de l’impôt sur les sociétés à Singapour : 

• Les dividendes, les bénéfices des succursales et les revenus des services provenant de l’étranger. Ces revenus peuvent être exonérés s’ils sont transférés à Singapour et s’ils remplissent les conditions du régime de l’exonération des revenus provenant de l’étranger. Les dividendes reçus de sociétés résidentes de Singapour sont exemptées. 

• Les plus-values, telles que les gains provenant de la vente d’actifs immobilisés, d’actions ou de biens immobiliers, à moins qu’elles ne proviennent d’activités commerciales ou qu’elles ne soient considérées comme des revenus par nature. Pourtant, ce régime a été durci en 2024 pour les groupes de société. 

• Les intérêts, à moins qu’ils ne proviennent d’un commerce ou d’une entreprise ou de dépôts auprès de banques ou d’institutions financières agréées à Singapour. 

Domiciliation des sociétés à Singapour et impact sur la fiscalité 

La domiciliation d’une société fait référence à son statut de résident fiscal, qui détermine ses obligations et droits fiscaux à Singapour.  

Une société est considérée comme résidente fiscale à Singapour si son administration et son contrôle sont exercés à Singapour, ce qui est généralement déterminé par le lieu des réunions de son conseil d’administration (siège de direction effective). 

La résidence fiscale d’une société est déterminée en fonction de son lieu d’administration et de son contrôle à Singapour 

Les principaux avantages d’être résident fiscal à Singapour sont les suivants : 

• Accès aux conventions fiscales que Singapour a signé avec plus de 90 pays, qui permettent d’éviter la double imposition et de réduire l’imposition de certains revenus. 

• Accès au régime d’exemption des revenus de source étrangère. 

• L’éligibilité aux incitations fiscales et aux subventions disponibles pour les entreprises résidentes, telles que l’abattement de l’impôt sur la création d’entreprise (pour les 200 000 premiers SGD de profits) et le crédit d’impôt pour la productivité et l’innovation. 

• Bénéficier de crédits d’impôts. 

Impôts sur les dividendes et autres paiements aux actionnaires, directeurs et personnes physiques 

Certains dividendes peuvent être exemptés d’impôts. De façon générale les résidents singapouriens sont plus souvent exemptés de retenue à la source mais sujets à l’imposition à titre des revenues personnels. Les règles générales sont les suivantes : 

• Les dividendes versés par les sociétés résidentes de Singapour ne sont pas soumis à la retenue à la source ou à l’impôt sur le revenu au niveau de l’actionnaire, car ils sont issus d’un profit déjà imposé à Singapour. 

• Les dividendes versés par des sociétés non-résidentes sont soumis à une retenue à la source dans le pays d’origine, à moins qu’une convention fiscale ne la réduise ou ne l’élimine. Ils sont également soumis à l’impôt sur le revenu à Singapour, sauf s’ils sont exonérés en vertu du régime d’exonération des revenus de source étrangère. 

• Les intérêts, les redevances et les frais de gestion (pour des emprunts) versés à des actionnaires, des administrateurs ou des personnes physiques non-résidents sont soumis à une retenue à la source de 15% à Singapour à moins qu’ils ne soient réduits ou éliminés par une convention fiscale. 

• Les royalties pour l’utilisation de biens mobiliers (incluant les propriétés intellectuelles) sont soumises à une retenue à la source de 10% à Singapour lorsque versées à des non-résidents. 

• Les jetons de présence à des directeurs non-résidents ou à des personnes physiques sont soumis à l’impôt sur le revenu à Singapour à un taux de retenue à la source de 24%. 

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À propos de MyBusiness in Asia – MBiA

MBiA est un cabinet de conseil multidisciplinaire fournissant des services en comptabilité, fiscalité et secrétariat d’entreprise pour les entrepreneurs, start-ups et PME couvrant tous les besoins d’entreprises.

Nos experts vous aident à comprendre les aspects et enjeux des affaires commerciales en Asie, et en français si besoin.
N’hésitez pas à nous contacter pour en savoir plus.

The post Tout comprendre sur fiscalité des entreprises à Singapour en 2024  appeared first on MyBusiness in Asia.

Ranked 5th out of 63 by The International Institute for Management Development (IMD) World Competitive Yearbook 2022, Hong Kong stands tall as a global business powerhouse. Due to its advantageous geographic position, robust economic development, and business-friendly policies, it comes as no surprise that many entrepreneurs opt to establish their startup operations in Hong Kong to broaden their global reach into the Asian market. Besides its enduring commercial benefits, Hong Kong’s well-known entrepreneurial spirit and dynamic environment offer an ideal backdrop for initiating a business venture. 

Why is Hong Kong an exceptional destination for expanding your startup? Let’s delve into the unique circumstances that make now the perfect time to invest and grow your venture in this dynamic market. 

• A supportive government
• Low, simple, and competitive tax system
• Strong network of incubators and accelerators
• Proximity to mainland China and APAC markets
• Diverse and wide-ranging startup and SME ecosystem
• Language
• Conclusion

A supportive government

Embracing its role as a catalyst for progress, the Hong Kong government is committed to fostering growth and innovation across various sectors. Through the initiatives outlined in the Hong Kong Budget 2024, the government aims to drive the city forward to achieve new milestones of success. From strengthening green finance to providing vital support for SMEs and promoting international trade, these initiatives reflect Hong Kong’s commitment to maintaining its position as a leading global hub. 

Innovation and Technology 

• In 2024, the Greater Bay Area International Clinical Trial Institute will be established in the Hetao Shenzhen Hong Kong Science and Technology Innovation Co-operation Zone. 
• The New Industrialization Acceleration Scheme will be launched in 2024, offering enterprises up to HK$200 million in matching funds. 
• HK$200 million is allocated to support incubation and acceleration programs for startups in Hetao engaged in life and health technology. 
• HK$3 billion is set aside to launch the Frontier Technology Research Infrastructure Support Scheme. 

Assisting Small and Medium Enterprises 

• Extending the application period for 80% and 90% Guarantee Products under the SME Financing Guarantee Scheme until the end of March 2026. 
• Injecting HK$500 million into the BUD Fund alongside the launch of “E-commerce Easy,” offering up to HK$1 million per enterprise for the implementation of e-commerce projects in Mainland China. 
• Launching the Digital Transformation Support Pilot Programme, inviting SMEs in the F&B and retail sectors to choose from ready-to-use solutions starting in early 2024. 

Trade 

• Establishing a multinational supply chain management center offering consulting services, trade financing, and corporate training. 
• Investigating the feasibility of creating a trade single window to offer comprehensive services to enterprises. 
• Encouraging Mainland manufacturing enterprises to establish offshore trading management headquarters in Hong Kong. 

Exploring new markets 

• Exploring the possibility of setting up Economic and Trade Offices in Riyadh, Saudi Arabia, and Kuala Lumpur, Malaysia. 
• Planning to host the “Belt and Road Festival” and the “Belt and Road Initiative Tax Administration Cooperation Forum” in 2024. 

Low, simple, and competitive tax system 

In the realm of taxation, Hong Kong stands out as a beacon of simplicity and generosity. With just three direct taxes to contend with, complemented by a wealth of allowances and deductions, navigating the tax landscape becomes a rewarding endeavor.  

The three taxes are: 

• Corporations enjoy a two-tiered profits tax system in Hong Kong, with the first HK$2 million of profits taxed at a rate of 8.25 percent, and profits exceeding that amount taxed at a rate of 16.5 percent. Unincorporated businesses, such as partnerships and sole proprietorships, have corresponding tax rates of 7.5% and 15%. 
• The standard rate for salaries tax stands at 15%. 
• Property tax is set at a flat rate of 15%. 

Here are the taxes that Hong Kong DOES NOT impose: 

• Sales tax or VAT 
• Withholding tax on dividends and interest 
• Capital gains tax 
• Tax on dividends 
• Estate tax 

Strong network of incubators and accelerators 

In the fast-paced environment of entrepreneurship, the early stages often make or break a startup’s success. This is where the support of incubators and accelerators becomes invaluable. For those opting for Hong Kong as the base for their business venture, this is indeed the optimal decision, as the city’s programs stand out not only for their abundance but also for their effectiveness in nurturing innovation and propelling startups toward success. 

How do startups in Hong Kong benefit from Accelerators? 

• Gain mentorship and sponsorship support, receiving valuable guidance, expertise, and knowledge to navigate startup challenges effectively. 
• Connect directly with investors interested in discovering promising startups through accelerator programs, potentially opening doors to funding opportunities. 
• Tap into the wealth of experience and skills accumulated by mentors and accelerator managers, accessing invaluable insights and information to accelerate startup growth. 
• Benefit from the diverse and encouraging environment of Hong Kong’s accelerator programs, which offer flexibility and adaptability, fostering an atmosphere conducive to startup success. 

How do startups in Hong Kong benefit from Incubators?  

• Cultivate relationships and exchange information with professionals and fellow entrepreneurs to foster business growth. A strong network provides valuable connections for both short-term and long-term success. 
• Gain access to essential resources like education, software, and workshops covering various topics such as business fundamentals and funding acquisition. These resources support startup development and growth. 
• Access affordable workspace options, akin to coworking spaces. Ensure they offer essential amenities like centralized printing and conference room access while exploring potential incubators. 

Proximity to mainland China and APAC markets 

Situated strategically in Asia, Hong Kong serves as a gateway for businesses to seize the myriad opportunities available in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and beyond. 

Since the signing of the Mainland and Hong Kong Closer Economic Partnership Agreement (CEPA) in 2003, collaboration between Hong Kong and Mainland China has flourished. This landmark agreement not only simplifies access to the vast mainland market for Hong Kong products and services but also surpasses China’s commitments under the World Trade Organization (WTO). By eliminating tariffs and providing preferential access to certain service sectors, CEPA paves the way for enhanced economic ties between the two regions. 

The unveiling of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) outline in 2019 marks a significant boost to the relationship between Hong Kong and the mainland. With nine bustling cities in Guangdong province alongside Hong Kong and Macao, the GBA emerges as a vibrant economic powerhouse within the Pearl River Delta. Notable cities like Guangzhou and Shenzhen, renowned for their manufacturing and technological prowess, underscore the region’s economic significance. Hong Kong’s seamless integration into the GBA opens doors for both local and international investors to dive into the boundless economic potential of Mainland China. 

Diverse and wide-ranging startup and SME ecosystem 

According to InvestHK’s 2023 Startup Survey, a remarkable surge was witnessed in both the number of startups and employed staff. With 4,257 startups employing 16,453 staff, Hong Kong’s resilience and growth are undeniable. 

Meanwhile, the SME sector continues to play a pivotal role in Hong Kong’s economic rebound, representing 98% of all businesses and employing 44% of the private sector workforce. As the backbone of the economy, SMEs contribute significantly to driving growth and innovation. 

Dive deeper into Hong Kong’s vibrant startup and SME ecosystem with our infographic, offering a comprehensive look at the dynamic landscape and a window of opportunities awaiting entrepreneurs and investors. 

Language  

When contemplating global expansion, language often poses a significant obstacle. It can be challenging to grow your startup in a new country when effective communication with potential investors, partners, or staff is hindered. However, for many foreign startups in Hong Kong, this is not a concern.  

With English, Cantonese, and Mandarin being the three main languages in Hong Kong, entrepreneurs proficient in either English or Cantonese should encounter no hurdles in connecting with potential stakeholders and enhancing their brand presence. 

Conclusion 

As Hong Kong is entering a truly golden age of innovation and technology, the outlook for 2024 is promising. Stepping into this Dragon year, Asia is set to lead the world in GDP, with Hong Kong playing a central role in this development. 

The city offers a supportive environment for ambitious entrepreneurs, with a vibrant ecosystem, clear regulations, and access to a diverse talent pool. As a key player in the global tech scene, Hong Kong presents excellent opportunities for entrepreneurs to turn their ideas into reality and succeed. 

For those with ambitions to grow on a global scale, now is the ideal time to begin this journey with a “Grow Fast Go Beyond” mindset. 

The post Is Now the Perfect Time to Invest and Expand Your Business in Hong Kong? appeared first on MyBusiness in Asia.

• Deciphering Singapore’s Work Permit Quota
• Deconstructing the Foreign Worker Quota
• Cracking the Quota Calculation Conundrum
• Eligibility Criteria for Foreign Workers
• Embracing Diversity: The Key to Success
• Concluding Insights

Deciphering Singapore’s Work Permit Quota

At the heart of Singapore’s labor policies lies the Work Permit Quota, a mechanism devised to maintain equilibrium in the workforce by balancing local and foreign talent. Spearheaded by the Ministry of Manpower (MOM), this quota system delineates the permissible ratio of foreign workers across various industries. The rationale is clear: to mitigate over-dependence on international labor while nurturing domestic talent.

The determination of your business’s Work Permit Quota hinges on several factors, including industry classification, company size, and the Dependency Ratio Ceiling (DRC). The DRC serves as a crucial metric, representing the maximum proportion of foreign workers permitted relative to the total workforce. While stringent regulations govern the employment of foreign workers, MOM offers avenues for flexibility through schemes such as Dependency Ratio Ceiling Exemptions and Sectoral Manpower Plans. These initiatives cater to the nuanced needs of businesses while upholding regulatory integrity.

Mastering the nuances of Singapore’s Work Permit Quota empowers employers to navigate hiring practices adeptly, fostering a symbiotic relationship between local talent and international expertise to propel Singapore’s economic trajectory forward.

Deconstructing the Foreign Worker Quota

The Foreign Worker Quota in Singapore serves as a linchpin in the nation’s labor framework, orchestrating the balance between domestic and foreign employment. But how does this intricate mechanism operate? Each sector is allocated a specific quota, delineating the permissible percentage of foreign workers vis-a-vis the total workforce. Employers must meticulously calculate their quota, factoring in variables such as DRC and sector-specific requisites. 

Once the quota threshold is reached, companies are precluded from recruiting additional foreign workers unless stringent criteria are met or requisite approvals secured. 

Here’s an example based on a company operating in the Service industry.  

Currently, the DRC, or quota, the maximum ratio of foreign workers to the total workforce that a company in the service sector is 35%. In addition, the number of DRC Work Permit holders hirable is limited by a DRC sub-quota capped at 8% of the total workforce (in the service sector)   

The company’s current workforce is composed of 12 Local Employees, 1 S Pass holder, and 4 Malaysian/NAS Work Permit holders. In this scenario, the company is allowed to hire 1 work Permit Holder before maximizing its quota. Before hiring another talent under the quota scheme, the company will need to increase the number of local employees.  

The data contained in this image is sourced from Ministry Of Manpower.

Cracking the Quota Calculation Conundrum

For small businesses in Singapore, computing the Foreign Worker Quota is akin to navigating a labyrinthine puzzle. The formulaic derivation necessitates a comprehensive assessment of local and foreign employee counts vis-a-vis the DRC.

By meticulously computing the DRC and Total Workforce Count, businesses can ascertain their available quota for recruiting foreign workers. This iterative process demands annual recalibration to accommodate workforce fluctuations.

By wielding a nuanced understanding of quota calculation methodologies, small enterprises can seamlessly harmonize regulatory compliance with strategic workforce management.

Here is the current quota requirement in Singapore for the different sectors:

MOM will use the information from the company’s CPF accounts to compute the exact number of local employees at any point in time. Via the CPF account the MOM is able to assess the social contributions paid by the company for its employees; thus it’s crucial to declare their salaries and CPF contributions accurately, and on time. 

For the quota calculations, A Singaporean or Permanent Resident employee is considered as: 

• 1 local employee if they earn at least $1,400 per month; or 
• 0.5 local employee (0.5 LQS count) if they earn half the LQS of at least $700 to below $1,400 per month. 

Eligibility Criteria for Foreign Workers

Unlocking the gateway to foreign talent necessitates adherence to stringent eligibility criteria. Businesses must secure a valid Work Permit quota before embarking on recruitment endeavors, ensuring alignment with government-mandated thresholds. Transparent advertising of job vacancies on national portals is mandated to uphold fair employment practices and foster inclusivity. Furthermore, employers must exhibit a commitment to nurturing local talent, offering competitive remuneration packages and robust training frameworks. By adhering to these eligibility prerequisites, businesses fortify their commitment to cultivating a diverse workforce.

Embracing Diversity: The Key to Success

A balanced workforce is the cornerstone of small business success, epitomizing inclusivity and innovation. Embracing diversity catalyzes creativity, fosters customer-centricity, and enhances employee retention rates. By harnessing the collective prowess of a heterogeneous workforce, businesses in Singapore can chart a trajectory towards sustained growth and resilience. 

Concluding Insights

Navigating the labyrinth of Work Permit Quotas in Singapore demands unwavering diligence and strategic foresight from small business owners. By aligning with regulatory mandates and fostering diversity, enterprises can sow the seeds of sustainable success in Singapore’s vibrant economic landscape. 

The post Work Permit Quota System in Singapore: A Concise Guide for Small Business Owners appeared first on MyBusiness in Asia.

In acknowledgment of these mounting pressures, we have forged a strategic partnership with ResGuard Solutions, an esteemed industry leader renowned for its expertise in data protection and cybersecurity. Together, we aim to alleviate the burdensome complexities of achieving PDPA compliance, offering SMEs a comprehensive solution to navigate this regulatory landscape with confidence and ease. 

In this article, we will cover:

• What is the Personal Data Protection Act (PDPA) in Singapore? 
• The Collaborative Offering of MBiA & ResGuard Solutions
• Conclusion 

What is the Personal Data Protection Act (PDPA) in Singapore? 

The Personal Data Protection Act (PDPA) of Singapore serves as a regulatory framework governing the management of personal data, encompassing its collection, utilization, and disclosure. Under the PDPA, personal data refers to information, irrespective of its accuracy, that can identify an individual. This legislation not only grants individuals certain rights concerning their personal information but also imposes obligations on organizations to ensure the safeguarding of collected data. 

Who is covered under the PDPA? 

The PDPA has broad coverage and generally applies to all private organizations and the personal information they collect. However, there are a few exceptions: 

• Any individual acting in a personal or domestic capacity 
• Any employee working in the course of their employment with an organization 
• Any public agency 

What are the requirements & obligations 

1. Mandatory according to PDPA

• Every registered company in Singapore must appoint a DPO 
• Data Protection Policies and SOPs must be in place 
• Documentation of the Data Inventory and compliance with the obligations must be ensured 
• Individuals must be able to exercise their User Rights 
• The awareness of the employees must be raised 
• Data Breach Response Plan must be in place 

2. Possible fines and reactions in case of non-compliance 

• Financial penalties of up to 1 million Singapore dollars or 10% of annual turnover (whatever higher). 
• Directions and Warnings from authorities in case of noncompliance. 
• Damage to reputation through publication of the offense and the penalty. 
• Audit of the entire business due to a complaint to the authority

The collaborative offering of MBiA & ResGuard Solutions

ResGuard Solutions, headquartered in Singapore, specializes in software and consulting services focused on data protection, cybersecurity, and compliance. Leveraging a digital As-a-Service Management Platform, we assist small and medium-sized enterprises (SMEs) in meeting compliance standards and enhancing internal processes. 

In alignment with our shared objective of assisting SMEs in adhering to regulations and improving privacy practices, MBiA collaborates with ResGuard Solutions to deliver a comprehensive range of services. Our tailored offerings address the challenges posed by increasingly stringent regulations and growing privacy concerns, providing expertise and solutions for seamless navigation of PDPA compliance complexities. 

By choosing MBiA as your partner, you’re not just securing maximum operating efficiency – you’re also ensuring strict compliance with data protection regulations. This entails entrusting all internal complexities to us, allowing you to concentrate solely on propelling your business forward and fostering growth. 

Here’s what we’ve got you covered:  

Outsourced Data Protection Officer (DPO) service 

We appoint a certified data protection expert as your DPO 

• Implementation of Data Protection Framework (including Policies & SOPs, Data Inventory, Data Breach Response Plan, Employee Awareness) 
• The DPO performs ongoing duties throughout the year such as handling of User Rights and requests from authorities. 
• Access to the digital Data Protection Manager to monitor the progress and keep track of the next steps. 

DPO support package 

For clients who opt to appoint an internal DPO, we offer comprehensive support in setting up their data protection framework to align with PDPA compliance standards. Through engaging online workshops and personalized guidance, we ensure that clients’ internal DPOs are equipped with the requisite knowledge and tools to effectively discharge their duties. Moreover, clients gain access to our cloud-based data protection portal, facilitating seamless collaboration and resource management. 

Provision of mandatory data protection documents such as Policies and SOPs 

We provide essential documentation essential for PDPA compliance, including: 

• Data Protection Policy (internal) 
• Data Protection Notice (to be published on the website) 
• Data Subject Request Procedure 
• Personal Data Breach Procedure 
• PDPA Employment Consent 

Digital action plan 

Conducting a thorough gap analysis is a crucial first step in the journey towards PDPA compliance. Our ‘Digital action plan’ takes this assessment a step further by providing SMEs with a detailed roadmap for achieving compliance objectives. Based on the results of the gap analysis, our experts generate a tailored action plan that outlines specific tasks, timelines, and responsible parties.  

From conducting staff training sessions to implementing technical controls and reviewing existing policies, each action item is carefully prioritized and sequenced to ensure maximum efficiency and effectiveness. By following this structured approach, SMEs can systematically address compliance gaps and mitigate risks while working towards their ultimate goal of achieving PDPA compliance. 

Conclusion 

Achieving PDPA compliance isn’t a one-time task but an ongoing journey that requires continual vigilance, dedication, and a proactive approach from businesses. In a rapidly evolving digital landscape, the challenges of safeguarding personal data are ever-present and demand a robust response. By embracing the guidance and support provided by MBiA and ResGuard Solutions, businesses can navigate these challenges effectively.  

Through adherence to the PDPA and leveraging the expertise offered by our partnership, organizations can mitigate the risks associated with non-compliance, safeguard their brand reputation, and cultivate trust among customers, partners, and the wider community.

The post Navigating PDPA Compliance: Comprehensive Package by MBiA & ResGuard Solutions Partnership appeared first on MyBusiness in Asia.

The recent CFO Breakfast Session, co-hosted by Deel and MBiA – MyBusiness in Asia, was a great success, bringing together Deel’s Global Payroll Professional Andrew Knell and RBA’s General Manager Pierre Vanrenterghem

Attendees got an exclusive look into HR and payroll best practices in M&A. They also received expert guidance on executing financial due diligence in M&A transactions.

3 key takeaways:
Key aspects of different valuation methods in Financial DDs
The ins and outs of EBITDA/Revenue Normalization
Consider HR strategy alignment and employee transfer before the M&A for seamless Post-Merger Integration

But it wasn’t just about presentations, the breakfast networking sparked lively conversation among CFOs. They actively shared experiences and swapped invaluable insights, creating a collaborative atmosphere that was truly inspiring.

Did you miss out? Stay tuned for future events by Deel and MBiA designed to equip you with the tools to excel in today’s dynamic business landscape.

The post CFO Breakfast | Payroll Compliance and Financial Due Diligence in M&A appeared first on MyBusiness in Asia.

In this article, we will provide a simplified summary to help you understand how these measures will impact businesses:

• Introduction
• Bolstering Confidence
  • Strategic Partnerships Enhancing the Small Business Landscape
  • Attracting Global Talent and Business Re-domiciliation
  • Enhancing Liquidity and Financial Assistance for SMEs
  • Accelerating Digital Transformation and Online Expansion
  • Revitalizing Tourism and Sector-Wide Benefits
  • Tax Reductions, Incentives, and Business Support
• Accelerating High-quality Development
  • Investment in Future Growth and Innovation
  • Responding to Changes in Global Trade Dynamics
• Conclusion

Bolstering Confidence

Strategic Partnerships Enhancing the Small Business Landscape

The announcement by the Finance Chief of over ten strategic enterprises partnering with The Office for Attracting Strategic Enterprises (OASES) signifies a major advancement in enriching Hong Kong’s business ecosystem. Anticipated to introduce over $40 billion in investments and generate around 13,000 jobs (including 30 companies from the initial batch), this initiative nurtures a dynamic and supportive environment for businesses. It offers SMEs opportunities for new collaborations, broader network access, and the chance to tap into the innovation and market prospects brought by these strategic enterprises to Hong Kong.

Attracting Global Talent and Business Re-domiciliation

The proactive measures of the government have welcomed over 140,000 applicants through talent admission schemes to Hong Kong, with more than 100,000 already establishing their new residence in the city. This significant influx of skilled professionals is crucial for companies in search of expertise and significantly contributes to the vitality of the local economy.

Enhancing Liquidity and Financial Assistance for SMEs

Recognizing the essential role of SMEs, which account for more than 98% of all local businesses, the Hong Kong budget prolongs the application period for the 80% and 90% Guarantee Products under the SME Financing Guarantee Scheme by an additional two years until March 2026. This move, coupled with a $10 billion increase to the existing $280 billion fund, is intended to facilitate easier access to government-backed loans at preferential rates.

Accelerating Digital Transformation and Online Expansion

The budget emphasizes the importance of digital transformation for SMEs via the Digital Transformation Support Pilot Programme, specifically designed to help SMEs in the retail and food service sectors to integrate digital technologies, with the expectation of aiding over 8,000 businesses. Moreover, the “E-Commerce Easy” program, part of the BUD Fund, seeks to enable firms to enter the Chinese e-commerce market, offering up to HK$1 million in support for each qualifying company.

Revitalizing Tourism and Sector-Wide Benefits

In an effort to rejuvenate the economy and various sectors, the government plans to organize over 80 major events in the first half of 2024, with a commitment of $100 million for event promotion over the next three years. Alongside the Tourism Board’s introduction of seasonal festivals and thematic tours, these initiatives are aimed at revitalizing tourism and sparking demand in retail, hospitality, catering, and transport sectors.

Tax Reductions, Incentives, and Business Support

The Hong Kong budget introduces several tax reductions, incentives, and support for businesses for the fiscal years 2023/24 and 2024/25.

For the fiscal year 2023/24, it offers a total, 100% exemption on both salaries tax and personal assessment tax, limited to $3,000, which will be reflected in the final tax bill for the 2023/24 assessment year, benefiting approximately 2.06 million taxpayers.

It also proposes a one-time 100% profit tax rebate for 2023-24, capped at $3,000, expected to assist around 160,000 businesses. The budget also allows for tax deductions on expenses incurred to reinstate leased commercial premises and makes allowances for industrial buildings and structures effectively claimable by new owners upon ownership changes.

For the fiscal year 2024/25, it plans a rate concession for non-domestic properties for the first quarter, from April to June 2024, with a cap of $1,000 per rateable property, which is anticipated to assist about 430,000 non-domestic properties.

Accelerating High-quality Development

Investment in Future Growth and Innovation

The Hong Kong government commits HKD 10 billion to the New Industrialisation Acceleration Scheme (NIAS) to attract high-value-added manufacturing in areas such as biotechnology, artificial intelligence, and green technology. This initiative complements previous investments, such as the Hong Kong Growth Portfolio’s backing of tech firms and startups, focusing on the Strategic Tech Fund for local startups.

The government continues to support startups through incubator programs, accelerator schemes, and access to venture capital. The collaborative efforts of the Hong Kong Science Park, Cyberport, and InvestHK to draw international startups demonstrate the government’s dedication to creating a thriving startup ecosystem. Additionally, sectors expected to experience growth, including green finance, the digital economy, and advanced manufacturing, will receive policy enhancements and financial backing, further enriching the business environment.

Responding to Changes in Global Trade Dynamics

Hong Kong is actively refining its trade and economic strategies to better align with the evolving global trade landscape, emphasizing an uptick in exports to burgeoning markets such as ASEAN and the Middle East. With the globalization of Mainland manufacturing enterprises, Hong Kong is positioning itself as a premier hub for multinational supply chain management, offering extensive professional services. This strategic pivot is supported by the expansion of Hong Kong’s economic and trade network overseas, reinforcing its role in the international business arena. Efforts to encourage Mainland manufacturing firms to set up their global or regional headquarters in Hong Kong highlight the city’s ambition to become a central node for global business activities.

In conclusion, the 2024-25 Hong Kong budget establishes a solid groundwork for business resurgence and economic renewal. Concentrating on SME empowerment, digital transformation, tax incentives, and investments in sectors with high growth potential, the government is dedicated to fostering a business-friendly climate that propels companies towards success and cement Hong Kong’s position as a frontrunner in innovation and economic progress. The strategic efforts to attract worldwide talent and simplify business re-domiciliation further bolster Hong Kong’s competitive advantage, rendering it an appealing choice for both businesses and professionals.

The post Hong Kong Budget 2024: Empowering businesses for new opportunities appeared first on MyBusiness in Asia.

In this article, we will cover:

• Introduction
• Key Components of Singapore’s Income Statement
• Implications for Businesses in Singapore
• Unlocking the Potential of Singapore’s Income Statement with MBiA

Key Components of Singapore’s Income Statement

1. Revenue Insights: Revenue serves as the lifeblood of any business, and dissecting its sources is crucial for understanding growth trajectories. Our analysis delves into revenue streams, market trends, and sales dynamics, offering valuable insights into customer behavior and market demand.

2. Cost Breakdown: A detailed examination of cost components is essential for optimizing operational efficiency and maximizing profitability. From variable costs to fixed expenses, our analysis uncovers cost drivers, identifies inefficiencies, and suggests strategies for cost containment.

3. Gross Margin Analysis: Gross margin analysis provides a deeper understanding of a company’s profitability by examining the relationship between revenue and cost of goods sold. We analyze gross margins to assess pricing strategies, product profitability, and overall business viability.

4. Operating Expenses Evaluation: Operating expenses encompass various expenditures, including marketing, administrative, and research costs. Our analysis scrutinizes expense allocation, identifies areas for optimization, and helps businesses streamline operations for enhanced efficiency.

5. Net Income and Earnings Per Share (EPS) Dynamics: Net income and EPS are critical metrics for evaluating a company’s bottom-line performance and shareholder value. Our comprehensive review of these metrics offers insights into profitability trends, financial health, and investor confidence.

Implications for Businesses in Singapore

• Strategic Planning: Insights derived from the income statement inform strategic planning initiatives, enabling businesses to align their goals with market dynamics and competitive pressures.

• Performance Evaluation: Monitoring key financial metrics derived from the income statement facilitates ongoing performance evaluation, allowing businesses to identify areas of improvement and drive operational excellence.

• Investor Confidence: Transparent and accurate financial reporting builds investor confidence and trust. By presenting a clear picture of financial performance through insightful income statement analysis, businesses can attract and retain investors.

• Regulatory Compliance: Compliance with regulatory requirements and accounting standards is essential for maintaining transparency and credibility. Our analysis ensures businesses adhere to Singapore’s financial reporting regulations, fostering trust among stakeholders.

Unlocking the Potential of Singapore’s Income Statement with MBiA

Navigate the complexities of Singapore’s business landscape with confidence and precision. MBiA offers unparalleled expertise and actionable insights into the intricacies of the income statement, empowering businesses to thrive in the competitive Singaporean market.

With our guidance, decode the language of finance and unlock the potential for sustainable growth and success in Singapore’s dynamic business environment. Trust MBiA to be your partner in navigating the intricacies of the income statement and achieving your business objectives with clarity and confidence.

If you appreciate our content, you will also appreciate our other articles:

• Navigating AI and Personal Data: Singapore PDPC Proposed Advisory Guidelines
• You need to prepare the GST rate change of 2024 now!
• 3 Reasons Why Regular Bookkeeping is Beneficial for your Company
• Payroll services Singapore
• The Best Reasons to Incorporate a Holding Company in Singapore

The post Demystifying Singapore’s Income Statement: A Comprehensive Guide for Business Success appeared first on MyBusiness in Asia.

• Introduction: The Rise of E-commerce in Singapore
• Goods and Services Tax (GST) in E-commerce
• Cross-border E-commerce Transactions
• Compliance Challenges and Opportunities
• Conclusion

Introduction: The Rise of E-commerce in Singapore

With the proliferation of digital platforms and the increasing adoption of online shopping, Singapore has emerged as a regional hub for e-commerce. The city-state’s strategic location, robust infrastructure, and tech-savvy population have contributed to the rapid growth of the e-commerce sector. According to recent data, Singapore’s e-commerce market is expected to reach USD 6.63 billion by 2025, driven by factors such as rising internet penetration, changing consumer preferences, and the growing popularity of mobile shopping.

However, amidst this rapid growth, businesses operating in the e-commerce space must navigate a complex regulatory environment, particularly concerning taxation. Singapore’s tax regulations governing e-commerce transactions are multifaceted, encompassing various aspects such as Goods and Services Tax (GST), import duties, and cross-border transactions. Understanding these regulations is crucial for e-commerce businesses to ensure compliance, mitigate risks, and seize opportunities for growth.

Goods and Services Tax (GST) in E-commerce

One of the key considerations for e-commerce businesses in Singapore is the applicability of Goods and Services Tax (GST) on their transactions. Under Singapore’s GST regime, goods and services supplied in Singapore are generally subject to GST at a standard rate of 9%. This includes goods and services sold through e-commerce platforms, regardless of whether the seller is based locally or overseas.

For e-commerce businesses operating in Singapore, compliance with GST regulations involves several key steps:

1. GST Registration: E-commerce businesses that exceed the GST registration threshold must register for GST with the Inland Revenue Authority of Singapore (IRAS). The current GST registration threshold is SGD 1 million in annual taxable turnover.

2. GST Collection and Reporting: Registered e-commerce businesses are required to charge GST on taxable supplies made to customers in Singapore. This includes both goods and services sold through online channels. Additionally, registered businesses must file GST returns with IRAS on a regular basis and remit the GST collected to the tax authorities.

3. Import GST: In addition to GST on domestic transactions, e-commerce businesses may also be liable for import GST on goods imported into Singapore. Import GST is payable at the point of importation and is generally collected by Singapore Customs.

Cross-border E-commerce Transactions

In an increasingly globalized marketplace, cross-border e-commerce transactions have become commonplace, presenting both opportunities and challenges for businesses. Singapore’s tax regulations governing cross-border e-commerce transactions are designed to ensure a level playing field for domestic and overseas sellers while facilitating international trade and commerce.

Key considerations for cross-border e-commerce transactions in Singapore include:

1. Customs Duties and Taxes: Goods imported into Singapore are subject to customs duties and taxes, including GST and/or duty, depending on the nature and value of the goods. E-commerce businesses involved in cross-border transactions must familiarize themselves with Singapore’s customs regulations and ensure compliance with applicable duties and taxes.

2. Low-Value Goods (LVG) Relief: To facilitate the importation of low-value goods, Singapore has implemented LVG relief, which exempts goods with a total value not exceeding SGD 400 from GST. However, LVG relief is subject to certain conditions and does not apply to certain categories of goods, such as alcohol, tobacco, and controlled goods.

3. Overseas Vendor Registration (OVR): In a bid to level the playing field between local and overseas vendors, Singapore has introduced the Overseas Vendor Registration (OVR) regime. Under this regime, overseas vendors that make significant supplies of digital services to customers in Singapore are required to register for GST and charge GST on their sales.

Compliance Challenges and Opportunities

While Singapore’s e-commerce tax regulations are designed to promote fairness and transparency in the digital economy, they also present challenges for businesses, particularly small and medium-sized enterprises (SMEs) and startups. Compliance with complex tax rules, GST registration requirements, and cross-border tax obligations can be daunting for businesses with limited resources and expertise.

However, amidst these challenges lie opportunities for businesses to streamline their operations, enhance their competitive advantage, and drive growth. By leveraging technology, automation, and expert guidance, e-commerce businesses can optimize their tax compliance processes, minimize risks, and capitalize on emerging opportunities in the digital economy.

Conclusion

In conclusion, navigating Singapore’s e-commerce tax regulations requires a comprehensive understanding of GST requirements, cross-border transaction rules, and compliance obligations. MBiA provides businesses with the expertise, insights, and resources needed to navigate the complex regulatory landscape effectively and capitalize on the opportunities presented by Singapore’s burgeoning e-commerce market.

With our in-depth analysis and strategic guidance, e-commerce businesses can ensure compliance, mitigate risks, and unlock the full potential of Singapore’s dynamic digital economy. Trust MBiA to be your partner in navigating the complexities of e-commerce taxation and achieving sustainable growth and success in Singapore’s competitive marketplace.

If you appreciate this content, you might be interested in our other articles:

• Navigating AI and Personal Data: Singapore PDPC Proposed Advisory Guidelines
• You need to prepare the GST rate change of 2024 now!
• 3 Reasons Why Regular Bookkeeping is Beneficial for your Company
• Payroll services Singapore
• The Best Reasons to Incorporate a Holding Company in Singapore

The post Navigating Singapore’s E-commerce Tax Regulations: A Comprehensive Analysis appeared first on MyBusiness in Asia.