This article will explain what the EP Eligibility Calculator is, how it works, the key requirements, and how you can use it to assess your EP application chances.

Overview:

• What is the EP Eligibility Framework?
• How to Use the EP Eligibility Calculator?
• Reviewing Your Results
• Benefits of Using the EP Eligibility Calculator

What is the EP Eligibility Framework?

To qualify for an Employment Pass (EP) in Singapore, applicants need to satisfy two main requirements:

1. EP Qualifying Salary

The first requirement is meeting the minimum qualifying salary, which is adjusted by age and sector. This salary threshold is based on the top third of local PMETs’ salaries by age:

– The minimum salary starts at $5,000 for younger applicants, increasing with age, up to $11,500 for those aged 45 and above.

Note: The salary should reflect your fixed monthly salary, exclusive of bonuses, overtime, or any other non-fixed components.

What is a PMET employee in Singapore?

PMET means Professionals, Managers, Executives and Technicians, but factually refers to all (local or foreign) employees earning at least SGD 3,150 per month.

2. COMPASS (Complementarity Assessment Framework)

After meeting the salary requirement, candidates must pass COMPASS, a points-based system that evaluates individual and company attributes. COMPASS ensures that EP holders bring skills that complement Singapore’s workforce.

To pass COMPASS, candidates need at least 40 points from multiple criteria.

How to Use MBiA EP Eligibility Calculator

Our EP Eligibility Calculator is designed to make it easy to assess your qualifications based on the COMPASS framework. Follow these steps to get your eligibility score:

To begin, input the following information into the calculator:

• Your Age
• Educational Qualifications (such as bachelor’s degree or higher)
• Proposed Monthly Salary
• University Attended
• Job Sector
• Company’s Workforce Size
• Job Role (particularly if it’s on the Shortage Occupation List for a skills bonus)
• Company’s Workforce Diversity

The calculator will assess your profile based on the following COMPASS criteria:

Salary Benchmark (C1)

The salary is based on the MOM’s definition of Fixed Monthly Salary in Singapore dollars, which consist of your basic monthly salary and your fixed monthly allowances.

Your salary is compared to sector-specific benchmarks. Higher salaries relative to the sector average can earn up to 20 points.

Qualifications (C2)

Points are awarded based on your educational level and the reputation of your institution. Higher degrees from recognized universities can contribute up to 20 points. If your university is not listed in the drop-down menu, select “Other Universities” to continue the assessment.

Note: Candidates without degree-equivalent qualifications can still pass COMPASS by earning at least 40 points from other criteria. This means you can make up for a lower qualification score by performing well in other areas like salary or workforce diversity.

Also, it does not make a difference if your highest degree is a Bachelor, Masters or PhD, since they all award a total of 10 points by default.

Workforce Diversity (C3)

Companies with a diverse workforce, especially in terms of nationality, score higher. A diverse workplace can add up to 20 points to your eligibility score.

Share of PMETs from Specific Nationality = (Total Number of PMETs/Number of PMETs from Specific Nationality) ×100

Small companies with less than 25 PMETS, will score 10 points by default on this criterion.

Local PMET Share (C4)

Companies with a higher percentage of local (Singaporean and PR) PMET employees earn more points, reflecting a commitment to supporting local talent. This criterion compares your company’s share of local PMETs to others in the same sector:

• 50th Percentile and Above: 20 points (your company has a higher share than 50% of others in the sector).
• 20th to Less Than 50th Percentile: 10 points (your company has a moderate share, below the top half).
• Below 20th Percentile: 0 points (your company has fewer local PMETs than 80% of others in the sector).

This can contribute up to 20 points toward your overall COMPASS score.

Small companies with less than 25 PMETS, will score 10 points by default on this criterion.

Skills Bonus (C5) If your role is on the Shortage Occupation List (SOL), you may receive bonus points, up to 20 points. These roles address critical skills gaps in Singapore.

Strategic Economic Priorities Bonus (C6) An additional 10 points may be awarded if your company is involved in programs supporting Singapore’s strategic economic goals and conducted in partnership with Singapore public agencies. These benefits industries contributing to long-term growth.

Once you enter all the information, the calculator will total your points and indicate if you meet the minimum 40 points required by COMPASS.

Reviewing Your Results

After generating your score, you can easily see if you meet the requirements for an Employment Pass:

• Stage 1: Does your salary meet the EP qualifying salary for your age and sector?
• Stage 2: Do you have at least 40 points across the COMPASS criteria?

If you meet both requirements, you should be eligible to apply for an Employment Pass in Singapore. If not, the calculator will highlight areas where you can improve, whether by adjusting your salary, enhancing qualifications, or joining a company with a more diverse workforce.

Benefits of Using the EP Eligibility Calculator

Quick and Accurate: Get instant results on your EP eligibility, without waiting for official responses.

Transparent: The calculator is based on the COMPASS points system applied by Singapore’s Ministry of Manpower, ensuring results you can trust.

Guidance for Improvement: If you don’t qualify, the calculator helps you pinpoint areas to focus on, such as increasing your salary or upgrading your qualifications.

Ready to Check Your EP Eligibility?

Try our Employment Pass Eligibility Calculator today to see if you qualify. Simply enter your details, and the tool will provide a clear, detailed assessment of your eligibility for an EP in Singapore.

Don’t wait—start your journey toward securing your Employment Pass in Singapore now!

Eligible? Contact MBiA to assist with your EP application!

MyBusiness in Asia Pte. Ltd. is an authorised filing agent in Singapore. This means that MBiA can apply for Employment Passes in other visas for your company and ensure to leverage extensive experience and secure your candidate’s next visa.

Further understand COMPASS and EP requirements

• Understanding the COMPASS Framework: Learn the full details of the COMPASS system and how each criterion is scored.
• COMPASS: The New Employment Pass regulation in Singapore: A closer look at the regulation changes, requirements, and what foreign professionals should know.

The post Evaluate Your Employment Pass (EP) Eligibility with MBiA COMPASS Calculator appeared first on MyBusiness in Asia.

After incorporating in Singapore, a company must choose a FYE. A Financial Year End (FYE) can align with various periods, such as the 12-month calendar year, financial quarter-ends, the company’s incorporation anniversary, seasonal cycles, or specific business cycles.

In this article, MyBusiness in Asia will explore the importance of selecting an appropriate Financial Year End (FYE) for a company and the key factors to consider in making this decision.

Overview:

• What is a business FYE and why is it important?
• How to choose your company’s FYE
• How to change your FYE
• IRAS Requirements for Fiscal Years
• Let MyBusiness In Asia help
• Summary

What is a business FYE and why is it important?

Simply put, the Financial Year End (FYE) marks the last day of a company’s accounting period, recurring every 12 months. In Singapore, the Companies Act does not mandate a specific FYE date, allowing businesses the flexibility to choose their own.

The FYE is crucial for meeting key legal requirements, such as filing annual returns with the Accounting and Corporate Regulatory Authority (ACRA) and submitting corporate tax returns with the Inland Revenue Authority of Singapore (IRAS). It also sets the cut-off for important business activities, including:

• Estimated Chargeable Income (ECI) filings: An estimate of taxable profits for a Year of Assessment.
• Annual General Meeting (AGM): Where financial statements are presented to shareholders.
• Annual Returns (AR) filing: Companies need to prepare financial accounts soon after FYE.

The chosen FYE date can also influence the types of tax exemption available to the company.

How to choose your company’s FYE

The Companies Act in Singapore outlines specific conditions for businesses when selecting their Financial Year End (FYE) as following:

• The fiscal year must start from the date of incorporation and end on the chosen FYE date.
• The first financial period should not exceed 18 months, unless special approval is granted.
• Each subsequent fiscal year must begin immediately after the previous financial year and must span exactly 12 months, unless otherwise approved by the Registrar.

Companies can adjust their Financial Year End (FYE) for the current or previous financial year if statutory deadlines remain open. Common choices for FYE are 31st December, 31st March, or 30th June. However, selecting a date involves more than simply choosing one that’s easy to remember – it’s essential to consider the company’s specific financial and operational needs.

To maximize company tax exemptions, MyBusiness in Asia recommends choosing your Financial Year End (FYE) strategically rather than opting for an easily remembered date. Ideally, set the first assessment period to be as long as possible within the initial 12 months for optimal benefits.

For example:

• Your company’s incorporation date: 10 August 2024
• Add one year to it: 10 August 2025
• Subtract a month: 10 July 2025
• Pick the last day of that month as your company’s FYE: 31 July 2025

How to change your FYE

To change its Financial Year End (FYE), a company must notify ACRA through the BizFile+ portal, free of charge. The FYE can only be adjusted for the current or previous financial year.

However, changes are not permitted if statutory deadlines for the Annual General Meeting (AGM), Annual Returns filing, or financial statement submission have passed. Additionally, approval from ACRA is required if the FYE was changed in the last five years or if the change would extend the financial year beyond 18 months.

IRAS Requirements for Fiscal Years

In Singapore, the Inland Revenue Authority of Singapore (IRAS) manages annual tax filing requirements, and companies must consider the following for fiscal years:

1. Fiscal Tax Year: Companies choose their fiscal tax year, which doesn’t have to align with the calendar year. The start and end dates are flexible within the tax year.
2. Consistency: Once set, the fiscal year is expected to remain stable. Changing it may need IRAS approval and requires valid reasons.
3. Duration: Typically, the fiscal year spans 12 months, but a first fiscal year may vary based on incorporation date.
4. Filing Deadlines: Submission deadlines for financial statements, annual reports, and tax filings depend on the fiscal year-end. IRAS specifies due dates, and companies must meet these to ensure compliance.
5. Tax Assessments: After filing, IRAS assesses tax payable based on the submitted financials. Discrepancies could lead to audits or reviews.

Staying informed about IRAS requirements and deadlines is essential for compliance. Consulting accounting professionals or IRAS directly can provide guidance for any specific needs.

Let MyBusiness In Asia help

Simplify your Financial Year End (FYE) management by letting MyBusiness In Asia handle the details for you. We’ll take care of document collation, legal compliance, and strategic decisions, allowing you to focus on your core business. Avoid the hassle, ensure smooth operations, and make cost-effective choices effortlessly. Contact us today to get started!

Contact Us

Summary

In short, your Singapore company’s financial year end can be tailored to suit your unique needs—that’s one of the many advantages of incorporating a business in this incredible country! Consider your industry, your incorporation date, and what timing works best for your operations. For expert guidance on setting up the right financial year end, reach out to one of our advisors.

You might also be interested

• Good accounting practice for the end of your financial year
• How to file Financial Statements in XBRL format?
• Accounting services in Singapore

The post How To Choose Financial Year End (FYE) In Singapore appeared first on MyBusiness in Asia.

This article will explain what a Nominee Director is, their responsibilities, who qualifies for the role, how to appoint one, and the potential risks involved.

• Who is a Nominee Director
• What are the roles and responsibilities of a Nominee Director
• Eligibility criteria for a Nominee Director in Singapore
• What differentiates a Nominee Director from an Executive Director
• Steps to appoint a Nominee Director
• Risks of hiring a Nominee Director

What is a Nominee Director

Under Singapore’s Company Act, every company incorporated in Singapore must have at least “one local resident director on its company’s board at all times” for compliance purposes.

These directors are responsible for overseeing and ensuring that companies established by foreigners comply with Singapore’s local laws.

A local resident director is defined as an individual who physically resides in Singapore (verified by proof of a local residential address) and is not disqualified from holding a directorship role.

If the company’s beneficial owner or appointed directors are not residents of Singapore, they may appoint a Nominee Director to meet this requirement.

The term “Nominee” signifies that this director role is strictly non-executive within the company. The primary function of a Nominee Director is to represent the appointing party without holding shares or having executive directorial responsibilities.

Hence, if you plan to incorporate a company in Singapore without a local resident director, you will need to appoint/hire a Nominee Director to complete the incorporation process successfully.

What are the roles and responsibilities of a nominee director

The roles and responsibilities of a Nominee Director in Singapore generally include:

• Meeting Legal Requirements: The primary role of a Nominee Director is to satisfy the legal obligations under Singapore’s Companies Act, which requires all companies registered in Singapore to have at least one resident director.
• Compliance: Ensuring the company adheres to all relevant laws, regulations, and corporate governance standards in Singapore. This includes filing annual returns, maintaining statutory registers, and meeting tax obligations.
• Fiduciary Responsibility: The Nominee Director represents the appointing party on the company’s board, upholding their interests within the legal framework of Singapore. They must also maintain strict confidentiality regarding company matters and sensitive information, safeguarding the appointing party’s interests.

Overall, the Nominee Director acts as a local representative to facilitate the company’s smooth operation within Singapore’s regulatory framework, ensuring compliance and protecting the appointing party’s interests.

Eligibility criteria for a Nominee Director in Singapore

According to the Singapore Companies Act, a nominee must be:

• A citizen or permanent resident of Singapore or a holder of an Entrepass work visa with a permanent Singapore address; and
• At least 18 years of age and
• Has a clean criminal record with no disqualifications

What differentiates a Nominee Director from an Executive Director

While nominee directors and regular directors share similar obligations, there are key differences between the two roles. Nominee Directors do not hold executive authority or engage in the company’s management, whereas regular directors have an executive role that includes making management decisions and overseeing daily operations. This distinction is crucial as it clarifies the roles and responsibilities of each type of director, ensuring effective and compliant company operations.

In essence, nominee directors act as a local presence for foreign entities in Singapore, assisting them in navigating the legal and regulatory landscape and establishing a local foothold. Conversely, regular directors are more actively involved in the company’s daily operations and decision-making processes, guiding its strategic direction and growth.

Outsourcing Nominee Director services is often one of the first recommendations for foreign companies looking to expand into Singapore, especially if the business owner does not yet possess an Employment Pass. MyBusiness In Asia is proud to offer a team of Nominee Directors in Singapore who can help ensure your business is set up successfully and all local compliances are met.

Steps to appoint a Nominee Director

The process of appointing a Nominee Director in Singapore typically involves the following steps:

1. Identify a Suitable Nominee: Select an individual who meets the eligibility criteria to serve as a nominee director. This person should be a resident of Singapore with a clean record and a solid understanding of the role.
2. Agreement: Reach an agreement with the chosen nominee director regarding their appointment. This agreement should outline their responsibilities, remuneration (if applicable), and any other relevant terms.
3. Documentation: Prepare the necessary documents to formalize the appointment. This may include a director’s consent form, an indemnity agreement, and any other required legal documentation.
4. Submission to ACRA: Submit the relevant forms and documents to the Accounting and Corporate Regulatory Authority (ACRA) of Singapore. This usually involves filing the necessary forms online through ACRA’s BizFile+ portal.
5. Payment of Fees: Pay any applicable fees for the appointment of the nominee director. These fees may vary depending on the service provider and the complexity of the appointment process.

Once the appointment is processed and approved by ACRA, the nominee director will be officially added to the company’s board and can begin fulfilling their legal duties and responsibilities.

Risks of hiring a Nominee Director

Hiring a Nominee Director for your company in Singapore comes with certain risks and considerations, including:

• Confidentiality Concerns: The Nominee Director may have access to sensitive company information, raising concerns about confidentiality and potential misuse. It is essential to establish clear confidentiality agreements and safeguards to protect your company’s interests.
• Legal Liability: Even though they serve as a Nominee Director, they may still be held legally liable for the company’s actions. If the company engages in unlawful or improper activities, the Nominee Director could face accountability, which could lead to legal consequences.
• Reputation Risk: Should the Nominee Director’s reputation suffer or if they become involved in controversies, it may negatively impact your company. This could affect your business relationships, credibility, and overall reputation in the market.

To minimize these risks, it is crucial to choose a capable and trustworthy Nominee Director who understands well Singapore’s Companies Act and local laws and regulations. Collaborating with reputable nominees, establishing clear agreements and safeguards, and maintaining open communication can help mitigate these risks and ensure compliance with applicable laws and regulations.

Summary

In conclusion, appointing a Nominee Director is essential for foreigner aiming to incorporate a company in Singapore. Nominee Directors play a vital role in ensuring compliance with local laws, providing a local address, and acting in the best interests of the company. By understanding the eligibility criteria, roles and responsibilities, and the appointment process, you can effectively navigate the complexities of appointing a nominee director in Singapore.

Moreover, seeking professional assistance can help ensure adherence to local laws and regulations, thereby mitigating potential risks and challenges. Remember, the success of your company in Singapore largely depends on the competence and reliability of your Nominee Director, so it’s important to choose wisely.

The post What Is A Nominee Director In Singapore appeared first on MyBusiness in Asia.

Overview:

• What is a Contact Address?
• Differences Between Contact and Personal Addresses
• Who Needs to Update Their Address?
• Why Register a Contact Address?
• How to Update Your Contact Address with ACRA
• Important Deadlines for Updating Addresses

What is a Contact Address in Singapore?

A Contact Address (or Alternate Address) is a publicly available address that company officers (directors, shareholders, secretaries) can register to protect their Personal Address (residential address) from being displayed in ACRA’s public records.

ACRA introduced this option to give company officers greater control over their personal privacy, while still ensuring that they can be contacted for official business purposes.

Key Features of a Contact Address:

• Publicly Displayed: The Contact Address will appear in public business profiles available through ACRA’s BizFile+ portal.
• Physical Address: It must be a valid physical address, such as an office or a corporate service provider’s address. P.O. Boxes are not allowed.
• Same Jurisdiction: The Contact Address must be in the same jurisdiction (country) as the officer’s residential address.

Example of Jurisdiction Requirement:

If a company director’s residential address is in Singapore, their Contact Address must also be in Singapore. For example:

• Acceptable Contact Address: “123 Robinson Road, #xx-xx, Singapore.”
• Not Acceptable: A Contact Address located in Malaysia, or another foreign country, would not meet ACRA’s jurisdiction rule.

This ensures that the officer can be reliably reached at a valid address within the country.

Differences Between Contact and Personal Addresses

It is important to understand the distinction between these two address types, as each serves a different purpose in ACRA’s records:

Who Needs to Update Their Address?

Any company officer in Singapore — including directors, shareholders, and secretaries — can choose to update their public address to a Contact Address. This option is available to those who wish to protect their Personal Address from public visibility.

By the end of 2024, company officers who wish to replace their Personal Address with a Contact Address must update their records with ACRA to avoid public disclosure.

Why Register a Contact Address?

Registering a Contact Address offers several practical benefits:

1. Protect Your Privacy: By providing a Contact Address, company officers can keep their Personal (Residential) Address private. This prevents unsolicited contact or unwelcome visitors and ensures personal privacy.
2. Avoid Overwhelming Mail at Home: Using your home address for business purposes can result in a flood of business-related mail and documents being delivered to your residence. By registering a Contact Address, you can direct business correspondence to a more appropriate location, such as your company office or service provider.
3. Professional Image: A Contact Address that’s linked to a business location (like an office or corporate service provider) presents a more professional appearance when displayed on the BizFile+ profile.
4. Compliance: Registering a Contact Address ensures that you remain fully compliant with ACRA’s regulations, while also offering flexibility in how you manage your contact information.
5. Public Accessibility: Anyone who pays SGD 5.50 to download your company’s business profile from ACRA’s BizFile+ portal will see your Contact Address instead of your Personal Address, ensuring that personal details are kept confidential.

How to Update Your Contact Address with ACRA

Updating your Contact Address is straightforward and can be done online through ACRA’s BizFile+ portal. Here’s how:

Step 1: Log in to BizFile+
Access BizFile+ using your CorpPass or SingPass.

Step 2: Navigate to the “Update Address” Section
Once logged in, find the section for updating the officer’s address. Select the relevant company officer whose address you want to update.

Step 3: Enter the New Contact Address
Input the new Contact Address (e.g., the company office address or the service provider’s address). Remember, it must be a physical address within the same jurisdiction as the officer’s Personal Address.

Step 4: Submit the Change and Verify
Review the information, submit the update, and verify the changes. If you complete this before November 30, 2024, there will be no filing fee.

Important Deadlines for Updating Addresses

• No Filing Fee Until November 30, 2024: Officers who update their Contact Address before this date will not incur any charges.
• Filing Fee After November 2024: Starting December 1, 2024, a filing fee of SGD 40 per officer will apply for updating addresses in BizFile+.

It is advisable to update your Contact Address before this deadline to avoid extra fees.

Conclusion

Registering a Contact Address is a simple yet important step for company officers who want to maintain privacy, project professionalism, and comply with ACRA’s regulations. By switching from a Personal Address to a Contact Address, officers can protect their residential details from public exposure, avoid receiving business-related mail at home, and ensure they are accessible for official matters. Be sure to update your Contact Address before the deadline to avoid unnecessary fees.

The post Understanding the Contact Address and Personal Address in Singapore: A Complete Guide appeared first on MyBusiness in Asia.

In this article, we will explore the key tax benefits of incorporating in Singapore, focusing on the Start-Up Tax Exemption (SUTE) and Partial Tax Exemption (PTE) schemes, among others, which make the country an attractive destination for entrepreneurs.

Overview:

• Understanding Singapore Corporate Tax Exemptions
• Start-up Tax Exemption (SUTE)
• Partial Tax Exemption
• Corporate Income Tax (CIT) Rebate
• Foreign Sourced Income Exemption Scheme (FSIE)
• Pioneer Certificate Incentive (PC)
• Development and Expansion Incentive (DEI)
• FAQ
• You might also be interested in

Understanding Singapore Corporate Tax Exemptions

Singapore’s corporate tax is set at a flat rate of 17%, designed for simplicity and clarity for investors.

However, there is much more to it. To promote entrepreneurship and attracting foreign investments, Singapore government have established legislations to provide many tax benefits for companies incorporated in Singapore.

Start-up Tax Exemption (SUTE)

The Start-Up Tax Exemption (SUTE) is an excellent example of Singapore’s strong commitment to supporting new businesses. Eligible start-ups under SUTE can benefit from a 75% tax exemption on the first S$100,000 of chargeable income, followed by a 50% exemption on the next S$100,000 for the first three consecutive Years of Assessment (YAs) from incorporation, as outlined in the 2024 regulations.

This exemption applies to the company’s first three consecutive YAs, beginning from the first YA, regardless of whether the company has generated chargeable income. Therefore, if a company only begins earning chargeable income in its third YA, it will still qualify for a single year of tax exemption under SUTE.

To qualify for SUTE, start-ups must meet the following criteria:

• Be incorporated in Singapore
• Be a tax resident in Singapore for the relevant financial year
• The company’s total shareholding is held by no more than 20 shareholders during that financial year, where:
  • All shareholders are individuals, or.
  • At least one shareholder is an individual holding a minimum of 10% of the issued ordinary shares.

Qualifying start-ups incorporating from 2020 onwards will have SUTE applied as such:

Partial Tax Exemption

After the initial three years of Start-Up Tax Exemption (SUTE), new companies and start-ups can still benefit from the Partial Tax Exemption (PTE). Even companies that do not qualify for SUTE can take advantage of the PTE, provided they meet the eligibility criteria.

As of 2020, qualifying companies can enjoy:

• A 75% tax exemption on the first S$10,000 of chargeable income.
• A 50% exemption on the next S$190,000 of chargeable income.

Corporate Income Tax (CIT) Rebate

As of 2024, this CIT rebate has been phased out, meaning businesses will no longer receive the annual rebate they once enjoyed.

Foreign Sourced Income Exemption Scheme (FSIE)

While foreign-sourced income is generally subject to tax for Singapore companies, the Foreign-Sourced Income Exemption Scheme (FSIE) offers significant relief by mitigating tax liabilities in this area.

To qualify for FSIE, the foreign income must meet two key conditions:

• It must have already been taxed in the source country at a minimum corporate tax rate of 15%.
• It must be deemed beneficial to the Singapore-resident taxpayer.

A Singapore-incorporated company can benefit from FSIE on the following types of foreign income:

• Foreign-sourced service income: Income earned by a resident taxpayer for providing services to a foreign country.
• Foreign branch profits: Profits earned by a Singapore-incorporated company that operates as a branch of a foreign entity. Non-business or non-trade income from a foreign branch does not qualify.
• Foreign-sourced dividends: Dividends paid by a foreign company to a Singapore resident, deposited into a foreign custodian account before remittance into Singapore. These dividends must be brought into Singapore within one year of their transfer to the custodian account.

By meeting these criteria, Singapore companies can effectively reduce their tax obligations on foreign-sourced income, supporting global business expansion efforts.

Pioneer Certificate Incentive (PC)

The Pioneer Certificate Incentive (PC) is designed for companies recognized as pioneers in their industry, typically because their expertise or activities are more advanced than what is currently available in Singapore.

Qualifying companies under the PC can benefit from a concessionary tax rate of 5% on their qualifying income for up to five years. This incentive supports innovative businesses, encouraging them to contribute to Singapore’s economic development by introducing cutting-edge activities or technologies.

Development and Expansion Incentive (DEI)

The Development and Expansion Incentive (DEI) offers a reduced tax rate of 5% for up to ten years to companies that commit to significant growth and contribute positively to Singapore’s economy. This incentive is designed to encourage businesses to invest in local development and expansion activities that generate broader economic benefits.

While this article provides a glimpse into some of the key tax incentives available in Singapore, the full range of financial advantages for businesses in this dynamic city-state is vast. Numerous other tax exemptions and incentives exist for savvy investors who know how to navigate the system effectively.

If you’d like more detailed guidance from our expert team of lawyers, bankers, and accountants, feel free to contact us. We can help you unlock the full benefits of Singapore’s business landscape, saving you time, money, and unnecessary complications.

FAQ

You might also be interested in

• Making Sense of the Dividends Taxation and Regulations in Singapore
• Navigating Singapore’s E-commerce Tax Regulations: A Comprehensive Analysis
• What is GST in Singapore?

The post What are tax benefits of incorporating in Singapore appeared first on MyBusiness in Asia.

Overview:

• The Importance of Company Name Checks in Singapore
• Steps to Check Your Company Name Availability in Singapore
• How To Change Your Company Name
• You might also be interested in

The Importance of Company Name Checks in Singapore

Before you register your business in Singapore, it’s critical to verify that your preferred company name is available and compliant with ACRA regulations. Choosing the right name helps you speed up the registration process by a long shot.
Once your name application is approved, ACRA will reserve the name for 120 days. If you don’t register your business or incorporate the company within this timeframe, the reservation will expire, and the name will become available for others to register.
In some cases, name applications may need approval from Referral Authorities. For instance, if your proposed business name contains the word “school,” it may be referred to the Ministry of Education. The processing time for these referred applications can range from 14 to 60 days.
Changing your company name after registration will trigger the entire name approval process (and included fee) again. This means you will have to submit a new name application, which could delay your operations and incur additional fees. Therefore, choosing the right name from the start is essential to avoid these complications.

Steps to Check Your Company Name Availability in Singapore

Step 1: Some considerations before choosing a company name in Singapore

ACRA will refuse a business name application if it is:

1. Identical to an already existing business
2. Identical to an already reserved name
3. Undesirable
4. Prohibited by order of the Minister for Finance

For more details on points 1 and 2, continue reading Step 2. For guidelines on points 3 and 4, you can refer to the detailed instructions on ACRA’s website or download the guide directly here.

Step 2: Name research on Bizfile+

There is a shortcut to check if your chosen name is not yet taken or reserved. It is to do a search on ACRA’s Bizfile+ website.

After running the search, the system will display a list of names that are identical or similar to your chosen name. This helps you quickly identify any potential conflicts and decide whether to adjust your proposed name to avoid rejection.

Step 3: Once you have chosen an appropriate company name, register and incorporate your company!

Congratulations, you’re almost there! Now that you’ve checked your name, you can proceed with the business registration process in Singapore.
At MyBusiness in Asia (MbiA), our team of dedicated professionals is here to assist you with incorporating your company entirely online. If you’re looking for a reliable corporate secretarial service provider in Singapore, you’ve come to the right place! Contact us today for an instant callback and let us help you get started!

How to change your company name

Once you register a name for your company, there’s still optional for you to change it. MyBusiness In Asia has already posted another article providing guidance of how to change your company name.

You might also be interested in

• What is ACRA in Singapore?
• What is SSIC in Singapore?
• What is Bizfile+ and how to use it?
• What are the tax benefits of incorporating in SG?

The post How to Check Your Company Name Availability in Singapore appeared first on MyBusiness in Asia.

In this article, we will walk you through the process of how to change your company name in Singapore: 

• Steps to change company name in Singapore
• Public disclosure of changes
• The role of the Company Secretary

Steps to change company name in Singapore

Selecting a New Company Name

When your business grows and evolves over time, there may be a need for a new name that reflects a fresh outlook and its achievements. However, renaming is not just a brainstorming session – it’s crucial to choose a name that not only sounds great but also follows legal guidelines. 

In order to ensure compliance with Singapore Companies Act, selecting a new name for your company must fulfill the following criteria: 

• Avoid similar, identical, or phonetically matching names in Singapore ACRA’s reserved company name list. 
• Do not infringe reserved trademarks or brand names. 
• Avoid offensive names, connections to religious names or government entities. 
• Avoid names prohibited by the Minister of Finance (e.g. “Temasek”). 

To verify your company name availability, you can consider utilizing BizFile+ – an ACRA’s filing platform that allows company directors to check business name eligibility and make all their changes online. 

Applying for approval of the new name with ACRA 

Once a new name is chosen, the next step is to submit a “Change in Company Information” form with the details of the proposed name to the Accounting and Corporate Regulatory Authority (ACRA), accompanied by a nominal fee of $15. To submit the application online, you can log in to the BizFile+ website using CorpPass. Upon ACRA’s endorsement, the new name is reserved for 120 days. 

Passing a resolution for the new company name 

One crucial step in changing a company’s name in Singapore is to necessitate the passing of a special resolution during a general meeting to formalize the change. This resolution must be duly prepared, and shareholders notified at least 14 days in advance. The meeting can also be held at shorter notice with flexibility for shorter notice periods upon agreement from most voting rights holders. 

During the meeting, securing approval from shareholders holding at least ¾ of the voting rights is imperative. Subsequently, a notice of resolution must be promptly filed with ACRA within 14 days. Upon receipt, ACRA issues a notice certifying the name change, the new name therefore taking effect. 

Public disclosure of changes 

Following the successful name change, diligent communication with stakeholders is essential. This includes customers, suppliers, and partners, ensuring they are promptly informed. Moreover, updating all marketing collateral, such as social media profiles, websites, letterheads, business cards, signage, brochures, and rubber stamps, is imperative to reflect the new identity accurately. 

The role of the Company Secretary  

In Singapore, the company secretary plays a crucial role in ensuring compliance with the Companies Act, serving as a conduit between the board of directors and the shareholders of a company, and the authorities. Their responsibilities encompass various administrative and reporting tasks, including those pertinent to a company name change.  

Our dedicated team specializes in facilitating seamless and expedient company name changes, by providing the services of a company secretary. From verifying regulatory compliance to preparing requisite documentation, notifying stakeholders, and overseeing the procedural aspects until ACRA’s final approval, we offer comprehensive support throughout the entire process. Trust us to navigate the intricacies, ensuring a swift and efficient transition for your company’s new identity. 

If you would like to learn more about Company Secretary in Singapore, here is the related article that you might find helpful: Corporate secretarial services in Singapore

The post The process of changing a company name in Singapore  appeared first on MyBusiness in Asia.

Our following in-depth guide provides a concise and simplified approach that empowers you to navigate the incorporation process in Singapore with confidence:

• Steps To Incorporate A Company In Singapore
• Documents To Prepare
• Other Considerations For Foreigners
• Frequently Asked Questions

Steps To Incorporate A Company

Before diving into the process of company incorporation, it is essential to gain a better understanding of the mandatory steps for getting your company successfully incorporated in Singapore.

1. Pick Your Company Name

Companies incorporated in Singapore must have their name proposed in accordance with the general requirements and restrictions. The proposed name must be in English, and terms such as “bank,” “insurance,” “university,” and “education” should be used with careful consideration. Additionally, the proposed company name should not duplicate or resemble existing names listed by Singapore’s ACRA, names prohibited by the Minister, or names that infringe on reserved trademarks or brands.

2. Choose The Registered Address

An incorporated company in Singapore must have a registered office within the region. Here are some key considerations for your company’s registered address:

• It must be a physical address situated within Singapore, a P.O. Box or virtual office is not eligible.
• It must be open and available to the public for at least three hours each business day during normal business hours.
• Individuals’ residential addresses are permitted.

👉 Read our related article for further information: Registered office address for companies in Singapore

3. Decide On Key Personnel And Share Capital Structure

Key Personnel

• According to the Companies Act 1967, every Singapore company is required to have at least one resident director on its board all the time. However, it is often challenging for companies to find a local person in Singapore to act as a resident director, especially for offshore companies with primary operations in another country. As a result, using Nominee Directors will be an alternative solution to ensure incorporation requirements and Singaporean regulations compliance.
  • A resident director (or local director) can be either a Singapore citizen, permanent resident, or work pass (e.g. Employment Pass, EntrePass) holder.
  • A nominee director is a member of the board of directors who does not involved directly in the company’s operating activities. However, they still hold the same legal responsibilities as a resident director and must ensure the company at hand remains compliant with Singapore law (holding AGM on time, maintaining company registers, filing annual returns,…)
• Shareholder: A registered company must have at least 1 shareholder and a maximum of 50 shareholders. Shareholder(s)’ information, including full name, residential address, and ID documents (passport scan, FIN, NRIC number, etc.) should be provided. If the shareholder is a corporate entity, make sure you also have its business profile outlining the shareholder structure, and an authorized representative’s name & ID document.
• Company Secretary: The company secretary must be an individual residing in Singapore, not a corporation, and cannot be the sole director/shareholder. The requirements for detail provision are similar to those for directors.

Share Capital Structure

Your company constitution will need to include the following share details:

• Number of shares
• Type of shares (ordinary or preference shares)
• Share capital to be issued and currency

4. Register Your Company In Singapore

To register a company in Singapore, you must first secure approval for your company name from the Singapore Registrar of Companies.
Provide your agent with 3 potential names, and they will verify their availability through the ACRA’s BizFile+ portal, reserving them for 60 days. If necessary, you can extend the reservation for another 60 days while completing your application.

Once your company’s name is approved, you’ll need to gather and submit various documents to ACRA for the registration process.
Upon submission, ACRA typically processes your application within an hour. Once your company is successfully registered, ACRA will issue an e-Certificate of Incorporation [view sample], and a Business Profile.

👉 If you’re unsure about eligibility, explore the detailed article we have crafted on how to register a company in Singapore: Register a business in Singapore

5. Set Up A Corporate Bank or Business Account

Depending on the bank opted for account opening, you may go through the procedure either online or in-person. Some documents typically required to set up a corporate bank accounts are Board resolution with clear indication of any appointment of signatories, Certified copies of directors’ and authorized signatories’ NRICs or passports, an ACRA Business Profile Search, and Company’s incorporation certificate.

If you do not require credit features such as loan, credit revolving and credit card (a debit card is enough for you), then you can consider the opening of a business account. These accounts are offered by payment service providers, regulated by the Singapore MAS. They are easier to open and effective for SMEs unable to fulfill the high requirements of banks in Singapore.

👉 Find more information about business accounts:

• Singapore Business Account to Supplement Company’s Operations
• Open a Business Bank Account in Singapore
• The Ultimate Guide to Company Bank Account Opening In Singapore

6. Secure Necessary Business Licenses Or Permits

Most businesses in Singapore do not require a business license.

Depending on the type of activity, obtaining a business license may be required before beginning operations. Businesses such as clubs, employment agencies, market places, bars, food and beverage establishments, private educational institutions, telecommunications and InfoCom-related enterprises, manufacturing plants, healthcare providers, and trading entities are among those typically required to apply for licenses.

7. Apply For Employment Passes For Relocation To Singapore

The Employment Pass enables foreign professionals, managers, and executives to work in Singapore, provided they earn a minimum monthly salary of $5,500. Employers are required to demonstrate fair consideration of all job applicants as part of the application process for the Employment Pass.

👉 The eligibility for the Employment Pass is strict yet transparent, if you are not sure where to get started, consider reviewing the different work permits and visas available in Singapore: All you need to know about Work Passes in Singapore

Or, you can also reach out to MBiA’s team to have their advice on which visa would fit your qualifications experience the best!

II. Documents To Prepare

Various documents will be required when you incorporate a company in Singapore, which can be complex and time-consuming. Our overview provides a clear understanding of the essential documents and requirements, empowering you to navigate the process and meet your obligations confidently:

• Constitution of the company
• First director resolution
• Appointed company secretary documents
• Register of Registrable Controllers of the company
• Brief details of your business profile and activities
• Company registered address
• Details and identification documents (including proof of address) of shareholders (including corporate shareholders, if any), directors and company secretary

Ensure all documents are accurately prepared, signed, and submitted through your appointed agent, who will initiate the incorporation procedure via ACRA’s BizFile+ portal. Additionally, if any of your documents are not in English, you should have them translated and certified.

III. Other Considerations For Foreigners

Foreigners interested in registering a company in Singapore should consider the following:

1. Professional assistance required: Foreign individuals or entities cannot self-register their company in Singapore. Hence, a professional service provider is needed to handle the registration process, at least at the beginning.
2. No need for special visa: If you are not planning to relocate to Singapore, foreigners can still own a Singapore company and operate it remotely.
3. Requirement for local director: Even if no one from the company moves to Singapore, there is still a mandatory requirement to have a local director.
4. Bank account setup: Depending on the bank chosen, foreigners may need to travel to Singapore to set up a corporate bank account, or they can opt for a business account for simplicity.

If you are thinking of starting your own business in this city-state, look no further! Partner with MBiA and explore what you’ve got in an MBiA’s Singapore-incorporated service package.

MBiA’s Singapore Pre-incorporation Checklist

It takes a painstaking amount of time, effort and attention for a smooth company incorporation – but it doesn’t have to be. We have already created a concise and action-oriented checklist for pre-incorporation. This handy guide provides a clear roadmap for all the essential steps to successfully launching your Singapore business.

The checklist includes many crucial prerequisites covering foundation steps, corporate and legal representatives, share capital structure, and after-incorporation steps-related documents.

Ensure you are well-acknowledged and fully prepared to meet the requirements. Feel free to contact us for any guidance or support needed regarding incorporation.

Get our Pre-incorporation checklist for Singapore now!

In our latest articles, we’ll break down everything you should know before starting a company in Singapore!

• STARTING – My Business in Singapore
• RUNNING – My Business in Singapore
• Launch Your Business With Ease: Startup Incorporation Services In Singapore
• The Best Reasons to Incorporate a Holding Company in Singapore
• 5 good reasons to register a company in Singapore
• Open a Business Bank Account in Singapore
• How to check your company name availability in Singapore

FAQ

1. How long does the company registration process typically take in Singapore?

Applications are typically processed within a few hours minutes after the application is submitted. However, if the application requires approval or review from another agency, the processing time can be significantly longer, ranging from 14 days to as much as 2 months. It is important to plan accordingly and factor in this potential delay when scheduling your company’s incorporation timeline.

2. How much does the company registration process typically cost in Singapore?

To register a private limited company in Singapore, there will be two types of government fees: Name reservation fee and Company reservation fee. ACRA charges a S$ 15 fee for name reservation application and a S$ 300 registration fee.

All in all, if you’re wondering how much it costs to register a company in Singapore, the simple answer is at least S$ 315 to which you can add fees for your service provider.

3. Can I change my company’s business structure after registration in Singapore?

Yes, you have the option to update your company’s business structure using the BizFile+ system, which provides a convenient platform for making such adjustments. Depending on the nature and extent of the changes you wish to make, it may also be necessary to revise your business constitution accordingly. This process ensures that all legal and operational aspects are aligned with your updated business structure, providing clarity and compliance as your company evolves.

4. What is the minimum capital requirement for registering a company in Singapore?

When registering a company in Singapore, you only need a minimum paid-up capital of S$ 1. However, certain work visa applications may require you to maintain a specified minimum paid-up capital amount.

The post How To Incorporate A Company In Singapore appeared first on MyBusiness in Asia.

As a business, it is imperative to always gear up for busy seasons and ensure you have the necessary resources to achieve your highest sales. Adhering to key compliance deadlines is important because failing to meet regulations can result in significant penalties for non-compliance.

In this article, we will provide a simplified summary to help you easily keep track of important compliance deadlines in Singapore:

• Corporate compliance deadlines in Singapore
• What are the common penalties for non-compliance?
• What is a Compliance Calendar?
• Why is Compliance Calendar important?
• MBiA’s Singapore Compliance Calendar

Corporate compliance deadlines in Singapore

Success in Singapore requires understanding and adhering to their established regulations. To stay on track with regulations and keep things running smoothly, there are some key deadlines all corporations need to be aware of. Here is a breakdown of these essential compliance deadlines:

Holding Annual General Meeting (AGM)

All companies (except private dormant companies) must hold an Annual General Meeting (AGM) with shareholders within 6 months after their financial year end (FYE). However, there are some AGM exemptions that companies can get:

• Private companies can skip the AGM if they send their financial statements to shareholders within 5 months of FYE.
• However, the exemption does not cover cases where shareholders request an AGM within 14 days before the end of the sixth month after FYE.

Filing Annual Returns with ACRA

The date on which your business is required to file Annual Returns is any time within:

• For non-listed companies: 7 months after the FYE
• For listed companies: 5 months after the FYE

In addition, there is also a secondary factor to consider when filing Annual Returns, which is shareholder approval. Regardless of listing status, you can also file your annual returns one month after the date your shareholders approve the company’s financial statements. This can be a helpful option if your shareholder meeting falls a bit later in the year, but it is important to ensure both the meeting and filing occur within the designated timeframe.

File Estimated Chargeable Income (ECI)

Estimated Chargeable Income (ECI) is an estimate of a company’s taxable profits after deducting allowable expenses. Companies that don’t meet exemption criteria must report their ECI to the Inland Revenue Authority of Singapore (IRAS) within 3 months of their financial year-end. Companies typically receive a notification from IRAS to file their ECI in the last month of the financial year. This reporting requirement ensures companies estimate and remit their tax obligations in a timely manner.

Corporate tax return filing for previous YA (Form C-S/C)

Form C-S/C is the tax declaration form companies in Singapore must use to report their income to the IRAS. Companies are required to file either the shorter Form C-S or the more detailed Form C, depending on their revenue and eligibility for the simplified filing option.

The government introduced Form C-S to streamline the tax filing process, particularly for smaller companies. Starting on YA 2021, the deadline for filing Form C-S/C is 30th November of the year following the financial year.

IR8A filing/AIS submission

Form IR8A, also called the Return of Employee’s Remuneration, is a mandatory document that employers must submit to the IRAS on an annual basis to report the annual earnings of their employees. IR8A must be submitted to IRAS by 1st March following the end of the calendar year for which income is being reported. Failing to submit before the deadline may lead to fines under Section 94 of the Income Tax Act.

Auto Inclusion Scheme (AIS) is an arrangement by the Inland Revenue Authority of Singapore (IRAS) that allows employers to submit the income details of their employees electronically to a centralized digital platform. By automatically incorporating the information submitted by companies or employers through AI, this scheme aims to simplify income tax calculations for employees in Singapore As an employer, you must prepare all the employment income information, and submit the information using AIS software by March 1st.

For a quick overview of key compliance deadlines specific to non-listed companies, take a look at the following table:

What are the common penalties for non-compliance?

Failure to adhere to these regulations can result in significant consequences, impacting both the organization’s financial health and its reputation. Understanding the common penalties for non-compliance is essential for employers to proactively manage their obligations:

Keeping track of compliance deadlines requires investing significant time and resources. To optimize workflow and avoid resource strain, it is essential to make use of effective supporting tools.  Among these, a compliance calendar can be a game-changer for your business. 

What is a Compliance Calendar?

A compliance calendar is a critical tool that keeps track of all your important business obligations, deadlines, and regulations. It helps you ensure your company has all the information you need and file everything on time to avoid any fines or penalties due to missing information or late filings.

Why is Compliance Calendar important?

• Increase transparency: A compliance calendar enables effortless progress tracking, keeping stakeholders well-informed and reducing compliance uncertainty.
• Improve efficiency: Compliance calendars streamline recurring task fulfillment by storing key details (instructions, past learnings, required documents,…), which simplifies revisiting tasks and delegation.
• Circulate compliance information throughout the organization: Proactive management of regulations allows for planning, data gathering, resource allocation, and employee education, reducing non-compliance risks,…
• Circulate compliance information throughout the organization: Proactive management of regulations allows for planning, data gathering, resource allocation, and employee education, reducing non-compliance risks,…
• Take a proactive stance on regulatory measures: Compliance calendars allow organizations to plan ahead for compliance needs, rather than reactively addressing issues as they arise.

Compliance calendars play a pivotal role in managing legal requirements and ensuring regulatory compliance. An effective compliance program can bolster and reinforce your company’s values and desired culture.

MBiA’s Singapore Compliance Calendar

To assist busy business owners in navigating their compliance requirements, we’ve crafted a detailed and concise checklist of crucial due dates. This calendar visualizes a representation of all important compliance deadlines, offering a big picture of financial operation guidelines for businesses.

The calendar covers the 5 most crucial corporate compliance deadlines (AGM, ECI, Annual Returns, Corporate Tax Return, IR8A filing/AIS submission).

It is designed for companies with 4 different financial year-ends on 31st December, 30th June, 30th September, and 31st March.

Download our compliance calendar for free!

FAQs

1. What should I do before beginning my annual tax filings?

You can’t accurately do your annual tax filings without first completing some important preparatory tasks:

• Keep a complete record of sales income and operating expenses: Bookkeepers are responsible for regularly “balancing” the books , ensuring that debits and credits in the accounts are equal. If these numbers do not align, it is necessary to review past documentation to detect any inconsistencies, miscalculations, or other errors, and complete the process again.
• Account for employee costs during the year: Companies calculate employee costs by adding up all relevant costs associated with an employee throughout the year and dividing the sum into an annual, monthly, or hourly rate. The costs largely include gross salary and employer payroll contributions.
• Confirm the amount due from customers and the amount due to suppliers: This involves reviewing invoices, payment records, and outstanding balances to ensure all accounts receivable and accounts payable are accurately reported.
• Ensure accurate inventory management: Make sure your inventory records are precise and up-to-date. This includes raw materials, work-in-progress, and finished goods. Regular inventory counts and valuations help provide an accurate picture of your assets, which is essential for both financial reporting and tax purposes.

2. Which financial statements do I need to prepare?

Every company must submit annual financial statements in accordance with the Financial Reporting Standards of Singapore, unless they are exempted. These statements typically include:

• Profit and Loss Statement: The Statement of Comprehensive Income provides a summary of your company’s total revenue and expenses for the financial year. It indicates whether your company made a profit or incurred a loss, detailing the key drivers behind these financial outcomes.
• Balance Sheet: The balance sheet lists all your company’s assets, liabilities, and stockholder equity. It is essentially a measure of your firm’s net worth and long-term financial health.
• Cash Flow: This document lists your firm’s cash inflows and outflows and shows if you’re generating enough cash from business activities to fund your daily operations.
• Statement of Changes in Equity: The Statement of Changes in Equity informs you about changes in the beginning and ending balances of your company’s equity during the financial year.

3. Do My Financial Statements Have to Be Audited?

Your company, at consolidated level is required to have its financial statements audited if it meets any two of the following conditions:

• Your total annual revenue exceeds S$10 million
• Your total assets are greater than S$10 million
• Your company has more than 50 employees

4. Can tax exemptions be carried forward to subsequent years if there is no profit in the first 3 years?

No. If during any of the first three tax years, your company incurs losses or it has no income (e.g. business has not commenced), your chargeable income and tax payable will be zero. Therefore, the company cannot benefit from the tax exemption scheme for new start-ups for that tax year. However, that particular tax year will still be included in determining the first three consecutive tax years.

5. What if I disagree with the Notice of Assessment issued by the Inland Revenue Authority of Singapore (IRAS) for my company?

The company must file an objection to the IRAS within 2 months from the date of the Notice of Assessment. If no objection is received within that period, the assessment will be treated as final.

6. For how long can the company’s losses be carried forward?

If your company experiences business losses in a tax year and these adjusted losses exceed its other sources of income, or if there are no other sources of income to offset the trade losses, you will have unutilized losses (unutilised capital allowances, trade losses and donations) for that tax year. These unutilized losses can be carried forward to offset against your company’s taxable income in future tax years, provided the company passes the Shareholding Test. This test requires that there be no significant changes in the company’s shareholders and their shareholdings as of the relevant dates determined by the authorities. Unutilised capital allowances can only be applied to future income if the company remains operating in the same trade or business for which the allowances were originally given.

The post Singapore Compliance Deadlines appeared first on MyBusiness in Asia.

ESG proposes several initiatives and programs to enterprises; however, we will focus only on two of them:

• The enterprise financing scheme – Project Loan (EFS-PL)
• Market Readiness Assistance (MRA) Grant
• Case study

The enterprise financing scheme – Project Loan (EFS-PL)

The Enterprise Financing Scheme – Project Loan finances the fulfillment of secured overseas projects. There are multiple supportable loans, including:

• Working capital loan
• Factory/ Building/ Land (including Purchase/ Renovation/ Construction)
• Equipment/ Machineries/ Vessels/ Other Fixed Assets/ Machinery Hire Purchase
• Guarantees

The maximum loan is S$50 million per borrower for overseas projects and S$30 million per borrower in case of a domestic project: the amount of the latter will have a 50% reduction (S$15 million) from the 1^st of April 2024 to the 31^st of March 2025. The borrowers, which are subject to the same limits in the borrower group, have a repayment period of up to 15 years, requiring an underlying contract, secured sales order, or specific project tie-in.

ESG will bear 50% of the overall risk with financial institutions, a percentage that can be increased to 70% in case young enterprises or enterprises operating in a challenging market. Borrowers are still considered responsible for the overall repayment of the loan amount, and, in case of default, the participating financial institutions will follow their standard commercial recovery procedure, including the realization of security before claiming the unrecovered amount from EnterpriseSG based on the risk share. The financial institutions are also involved in the assessment of the interest rates, considering the level of risk involved.

The eligibility terms for this initiative are the following:

• Business Registration: must be a business entity registered and operating in Singapore.
• Eligible Entities: ACRA-registered Sole Proprietorships, Partnerships, Limited Liability Partnerships, and Companies.
• Loan Approval: subject to the assessment of the participating Financial Institution.
• Ownership Requirements: at least 30% local equity held by Singaporeans and/or Singapore Permanent Residents, determined by ultimate individual ownership.
• Financial Threshold: Group Annual Sales Turnover must not exceed S$500 million.
• Industry-Specific Eligibility: enterprises with SSIC codes starting with 41, 42, or 43 can apply for the enhanced EFS-PL for domestic projects.
• Usage of Funds:
  • For acquiring fixed assets to discharge a contractual obligation under a project
  • Must be tied to secured sales orders and/or projects, not for general working capital or operating expenses.

Market Readiness Assistance (MRA) Grant

The Market Readiness Assistance (MRA) Grant provides financial support of up to S$100,000 per company (per new market) to help cover 50% of the costs for companies expanding into new overseas markets. This amount will be split into the following activities:

• Overseas marketing promotions (capped at S$20,000): includes Overseas Marketing & PR, and Overseas Physical & Virtual Trade Fair.
• Overseas business development (capped at S$50,000): includes identification of Potential Overseas Partners, In-Market Business Development, and Overseas Marketing Presence.
• Overseas market set-up (capped at S$30,000): includes Market Entry and FTA & Trade Compliance Consultancy.

Each application is limited to one activity in a single overseas market and must be made by a single company (group applications are not allowed) no more than 6 months before the project’s start date. Each project shall not exceed 12 months.

In terms of eligibility for the MRA Grant, the company must meet the following criteria:

• Business Registration: must be a business entity registered and operating in Singapore.
• Ownership Requirements: at least 30% local equity held by Singaporeans and/or Singapore Permanent Residents, determined by ultimate individual ownership.
• Target overseas: the company’s annual sales in the target market must not have exceeded S$100,000 in any of the preceding three years.
• Size: the company must have a Group Annual Sales Turnover of no more than S$100 million or a Group employment size of no more than 200 employees.

Case study

Secretlab, a Singaporean gaming chair company, utilized the Market Readiness Assistance (MRA) Grant to expand into new markets, including Malaysia and Australia. The grant helped them connect with local partners, understand market regulations, and subsidize expansion costs. This support facilitated their successful entry into these international markets.

In conclusion, the EFS-PL and the MRA Grant are both designed to support the growth and expansion of Singaporean companies However, they serve different purposes and offer distinct types of support in terms of activities and financial aid. Also, the EFS-PL has more stringent eligibility criteria compared to the MRA Grant and includes a risk sharing component with financial institutions for a more structured framework.

The post How can Enterprise Singapore help your business? appeared first on MyBusiness in Asia.