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.

In helping entrepreneurs navigate their way towards the most suitable incubators and accelerators, this article provides a list of top 5 incubators/accelerators in Hong Kong in 2024:

• Cyberport
• The Hong Kong Science and Technology Parks Corporation (HKSTP) 
• Brinc 
• HKAI LAB 
• Hong Kong Startup Council 

1. Cyberport

Owned by the Hong Kong SAR Government, Cyberport is one of the driving forces for Hong Kong digital technology development. It offers various programs aimed at cultivating talents, supporting start-ups, and promoting industrial and economic growth.  

Cyberport entrepreneurship programs target entrepreneurs in the industries of Smart Living, FinTech, E-Sports and Digital Entertainment, AI, Big Data, Blockchain, Cyber Security, and Corporate Services at various stages:  

Source: Hong Kong Cyberport Management Company Limited

Cyberport’s Creative Micro Fund offers financial support to creative projects and startups in Hong Kong. It’s tailored for ventures in digital media, entertainment, design, and tech, providing seed capital to fuel innovation and entrepreneurship in these industries.  

The details for other sub-programmes are listed below. 

Cyberport Incubation Programme 

Who is this for?

Early-stage Hong Kong registered digital tech company limited by shares (or in progress of incorporation) and incorporated in Hong Kong less than 7 years upon application deadline.

Programme Benefits  

Up to HK$500,000 (≈ US$64,000) financial assistance including:

• HK$100,000 (≈ US$13,000) Initial Working Capital Grant
• Up to HK$200,000 (≈ US$25,500) grant to be allocated upon completion of Six-monthly Progress Reviews
• Up to HK$200,000 (≈ US$25,500) for Performance-driven 2-Tiered Assessment
• Rent-free working space (only for incubatees who chose to work on-site at Cyberport)
• Free use of Cyberport shared meeting rooms, conference rooms, co-working spaces, and other facilities
• Meetings with entrepreneurs and investors, and networking opportunities 

Application Procedure and Selection Criteria 

After submitting an online application form, the applicants will be screened and selected based on five main criteria, namely:

• Market viability with milestones and contribution to Cyberport’s strategic clusters.
• Quality and competence of the management team.
• Business scalability.
• Functional prototype or product secured by design or to solve a real problem.
• Innovativeness and social impact.

If you are interested in the programme, please refer to Hong Kong Cyberport Management Company Limited – Application process for further application guidelines.  

Cyberport Accelerator Support Programme (CASP) 

Who is this for? 

Cyberport existing or graduated incubatees, or Cyberport Creative Micro Fund (CCMF) grantees as per Hong Kong Cyberport Management Company Limited – FAQ 

Programme Benefits 

The Cyberport Accelerator Support Programme offers a maximum of HK$300,000 (≈ US$38,500) for: 75% subsidy on accelerator programme fees, office rental, marketing and promotion, professional services, travel, and accommodation, as well as 50% subsidy for interns. 

Application Procedure and Selection Criteria 

Applicants shall first submit a CASP online application form. They will then be vetted to ensure all requirements are met before the final selection is announced.

If you are interested in the programme, please refer to Hong Kong Cyberport Management Company Limited – Cyberport Accelerator Support Programme for further application guidelines.  

Overseas/Mainland Market Development Support Scheme (MDSS)

Who is this for?  

Cyberport incubatees, grantees or alumni from the CCMF and/ or CIP. This programme also focuses on HKCMCL incubatees, grantees, or alumni from CIP and CCMF who have not raised equal to or more than US$10M of funding in total on the date of filing a reimbursable claim can also qualify for this Scheme.

Programme Benefits 

A maximum of HK$200,000 (≈ US$25,500) for up to 75% of eligible expenses, which are the following: Market Development Activities for Overseas/Mainland Market, including Delegation mission to Overseas/ Mainland, Marketing exhibition/ conference/ event, Landing service for Overseas/ Mainland market expansion, and online/ offline marketing services for Overseas/ Mainland market expansion.    

Application Procedure and Selection Criteria  

The application criteria are the same as the previous programme. After submitting an online application form, applicants shall carry out the Market Development Activity. They can claim the eligible Market Development Activities after such services incurred and paid and within the financial assistance period by submitting the Expenses and Post-Programme Evaluation Form, together with supporting documents. 

For further detail, please refer to Hong Kong Cyberport Management Company Limited – Overseas/Mainland Market Development Support Scheme (MDSS) 

Cyberport Macro Fund

Who is this for? 

Scalable digital technology companies with operations based in Hong Kong, which also bear one of the following identities: Incubatees or graduates of Cyberport’s other programmes; Cyberport Smart-Space companies; or Cyberport office tenants. 

Investment Amount 

Between HK$1M (≈ US$130,000) to HK$20M (≈ US$2.5M) for Cyberport’s accumulative investment per new investee. Total equity from the CMF shall be less than 20% post investment throughout the life cycle of the digital entrepreneur. 

Application Procedure and Selection Criteria 

Following the online application form submission, applications will be selected based on three main areas, namely:

• Thorough business assessment includes compliance, governance, financial position and business viability.
• Potential return on investment.
• Proven involvement in the Cyberport community.

For further details, please refer to Hong Kong Cyberport Management Company Limited – Cyberport Macro Fund. 

2. The Hong Kong Science and Technology Parks Corporation (HKSTP)

The HKSTP is a government-owned organization established to fuel Hong Kong technology and innovation growth. To date, HKSTP has facilitated the success of 850+ incubation graduates, among which 80% are still in business, and 4 have filed an IPO. The corporation operates programmes that assist startups in reaching their goals, ranging from the earliest stage of entrepreneurship – Ideation, to Incubation, Acceleration, and Elite programmes. 

Ideation 

Who is this for? 

Participants with innovative Technology start-up ideas, supported by R&D and business planning, in the early stage of their entrepreneurial journey.

Programme Benefits

• Seed Funding: Up to HK$100,000 (≈ US$13,000) financial grant
• Coaching: A dedicated account manager to accompany you on your startup journey. 
• Training: Topics include Market Validation, Business Modelling, Pitching, etc.
• Center Facilities: Co-working space access
• Potential to bridging programmes: Prepare for HKSTP incubation programmes admission.

Application Procedure and Selection Criteria            

To apply, applicants shall submit the application via ‘Apply Now’ using the template provided. Shortlisted ones will then undergo the Panel Assessment. If you are interested in the programme, please refer to The Ideation Programme | HKSTP for further guidelines.

Incubation  

Who is this for? 

The HKSTP Incubation Programme is divided into 2 sub-programmes, namely General Incubation and Incu-Bio. The former is for startups of 5 years or less specializing in deep tech research to develop innovative solutions, whereas the latter is for startups of 2 years or less focused on diagnostic, therapeutic, medical device, or other biomedical areas. 

Programme Benefits  

• For General Incubatees, the programme will offer Account Management, Technical Support, Business Support, and Financial Support of up to HK$1.29M (≈ US$166,000) to cover your technology and business development expenses.
• For Incu-Bio Incubatees, the programme will offer Workspace Support, Technology Support, Business Support, and Financial Aid of up to HK$6M (≈ US$770,000). 

Application Procedure and Selection Criteria  

• For General Incubatees, the procedure commences with an Online Application Submission, followed by Due Diligence Meeting and Admission Panel Meeting (10 Mins Presentation + 10 Mins Q&A). For further information, please refer to Incubation Programme | HKSTP. 
• For Incu-Bio Incubatees, they shall submit a business proposal outlining their innovation and technology, business model, team and four-year milestone plan. After providing the required documents to support the application, the applicants will undergo an eligibility check conducted by an assessment panel of independent experts. Please refer to Incu-Bio (hkstp.org) for further guidance.    

Acceleration 

Who is this for?  

Growth-stage company looking to scale globally, engaged in a technology intensive business, such as: Information Technology & Telecommunication; A.I and Robotic; Electronics; Fintech; Biotechnology; Precision Engineering; Green Technology.

Programme Benefits 

Successful applicants will be offered Fundraising Support of Financial Support of up to HK$4.8M (≈ US$615,000) in subsidies, Business Development Support, Professional Services Support, and the opportunity to Accelerate to the Next Stage.  

The programme requires entering the SAFE (Simple Agreement for Future Equity). 

Application Procedure and Selection Criteria  

Once the online application form with all the required supporting documents is submitted, the application will undergo evaluation by the Admission Panel. More information can be found at The Acceleration Programme | HKSTP 

Elite

Who is this for? 

Robust growth potentials who target to further groom the business and eventually become a unicorn.  

Programme Benefits 

The programme provides Financial Support of up to HK$21.5M (≈ US$2.8M), Fundraising Support, Business Development Support, Professional Services Support, and Infrastructure Support. 

The programme requires entering the SAFE (Simple Agreement for Future Equity)

Application Procedure and Selection Criteria  

Applicants shall submit the current company overview presentation through the programme enquiry. Selections will be made based on the applicant’s business plan; financial resources and performance; technology and R&D plan; management capacity and team competencies; and the applicant’s contribution to the ecosystem. 

More information can be found at Elite Programme | Funding | Unicorn | IPO | M&A | Science Park | HKSTP 

3. Brinc 

Brinc is a venture capital and accelerator firm based in Hong Kong with a global footprint. It focuses on entrepreneurs with innovations and approaches that can solve the world’s biggest challenges. Brinc’s acceleration programs are divided into 8 sub-programs, namely Artificial Intelligence, Climate Tech, Gaming, Hardware & IoT, Health, Web3, A4X, and Enterprise SaaS. The first six programs are available for Hong Kong, Singapore, and global startups, while the other two are active in India.

Who are these programmes for? 

Early-stage founders who are operating in an industry directly linked to the specific project they are applying for.

Programme Benefits 

• Participants can attract investments of a maximum US$100,000 (For Decentralized Health and Artificial Intelligence), US$150,000 (For ZK Advancer of Web3 and Health Innovation), and US$200,000 (For Gaming, and Climate Tech). 
• The programs also offer Mentorship, Customized Curriculum, Strong Network Connections, Ongoing Support, and other Perks.  
• The programme requires a token grant of 2% of the company’s total token grant supply, and a US$35,000 program fee. 

Application Procedure and Selection Guidelines 

The application is straightforward. Applicants can choose from a list of accelerator programs and quick apply via apply to Global Venture Accelerator Programs at Brinc. For further information, please refer to Accelerators Programs – Brinc for further guidelines.  

4. HKAI LAB 

HKAI LAB is a platform focused on advancing the frontiers of Artificial Intelligence with innovative technologies and expertise, and empowering startups to develop and commercialize their AI inventions and technologies. Its acceleration program lasts 12 months, with 2 cohorts running annually. The focus is on commercializing AI inventions and technologies developed at the lab. 

Who is this for?  

Early-stage startups with a team, and engaging in research, development, and application of AI. 

Programme Benefits 

The selected companies are eligible to be evaluated by Alibaba Hong Kong Entrepreneurs Fund (AHKEF) and/or SenseTime to get their funding support. However, it is not a guaranteed investment. They can also gain access to: 

• Extensive investor network 
• Proprietary ai technologies 
• Strong advisory, network, and business opportunities 
• Dedicated support and resources 
• Office space

Application Procedure and Selection Criteria 

Applicants shall submit the online application form with the required supporting documents including, but not limited to a business plan; CVs of the founders; and the certificate of incorporation of the company. Following that, the Selection Panel will vet the applicants and invite the shortlisted ones to an interview. Selections will be made based on the applicants’: 

• Depth Of R&D
• Innovation Quotient
• Viability Of Business Plan
• Competence Of the Founding Team

Further information can be found at HKAI Lab Accelerator Program – HKAI LAB (hongkongai.org) 

5. Hong Kong Startup Council 

Hong Kong Startup Council is a platform devoted to ramping up the growth of early-stage and growing startups by connecting them with seasoned industrialists, like-minded innovators, investors, the R&D sector, and the youth. Startups can obtain resources from the STARS Programme, which is a mentorship and partnership-centric programme on a zero-equity basis.

Who is this for?

Since its inauguration, the STARS Programme has hosted 5 cohorts with specific themes, namely: “Internet of Things” (IoT); “Smart Energy and Eco-Home”; Toys and Electronics Industries; Food Technology; PropTech + ESG.  

Programme Benefits 

Selected Startups can expect to receive:  

• SYNERGIES: Accelerate the development of startups and enhance the competitiveness of the Hong Kong industries. 
• TRAINING: Tailored mentorship programme and workshops developed and delivered by industry experts. 
• ANGELS: Opportunities to meet angel investors from valuable networks, specifically business and investor matchings, 
• RESOURCES: Dedicated one-stop platform providing technologies and services  
• SUPPORT: Build your business through expanding plans and go-to-market opportunities  

Application Procedure and Selection Criteria 

Since the featured topics vary from cohort to cohort, interested startups are encouraged to stay updated by regularly checking the programme website (Hong Kong STARTS Programme). 

Disclaimer: Information accurate as of June 7, 2024. This content is for general informational purposes only. Always refer to the official website for the most current and authoritative information. We are not liable for decisions based on this potentially outdated information. The linked website remains the primary and authoritative source for all updates and details. 

The post Top 5 incubators accelerators in Hong Kong  appeared first on MyBusiness in Asia.

This article will provide an overview of the BRN and its significance to Hong Kong’s businesses:

• What is a Business Registration Number (BRN)? 
• Which business requires a BRN? 
• How to obtain a BRN?
• What is the Business Registration Number of my Entity? 
• Where is the BRN used? 
• What are the benefits of having a BRN? 

What is a Business Registration number (BRN)?

In Hong Kong, every registered business entity receives a Business Registration Number (BRN) from the Business Registration Office, which operates under the Inland Revenue Department (IRD). This 8-digit identifier is important in ensuring businesses adhere to local regulations and meet their tax requirements.  

Which business requires a BRN? 

Under the Second Phase of the Unique Business Identifier (UBI) system, effective from 27 December 2023, a Business Registration Number (BRN) is compulsory for most business entities. They include:  

• Limited Partnership Funds (“LPFs”); 
• Companies incorporated or registered under the Companies Ordinance;  
• Open-ended fund companies incorporated or registered under Part IVA of the Securities and Futures Ordinance; 
• Limited partnerships registered under the Limited Partnerships Ordinance; 
• Registered trustees corporations incorporated under the Registered Trustees Incorporation Ordinance; 
• Other entities formed or registered under various Ordinances administered by the Registrar of Companies; 

The Business Registration Number (BRN) replaces the company registration number on certificates issued by the Companies Registry for incorporation, registration changes, and name changes. It must also be included on specified forms and documents submitted to the registry. The BRN will become the primary identifier used to search for and identify companies or entities across various services provided by the Companies Registry. 

How to obtain a BRN?

Obtaining a business registration number in Hong Kong is a straightforward process with several key steps: 

• Register your business with the Hong Kong Companies Registry. 
• After successfully registering your business, the next step is to obtain a Business Registration Certificate from the Inland Revenue Department. This certificate confirms your business registration status and includes details such as your business name, address, and the assigned business registration number.  
• Your business registration number is issued to you along with the Business Registration Certificate by the Inland Revenue Department.  

What is the Business Registration Number of my Entity? 

For companies incorporated/registered on or after 27 December 2023, the BRN is the eight-digit number as the “No.” on the “Certificate of Incorporation” or “Certificate of Registration of Non-Hong Kong Company” issued by the Companies Registry.  

Certificates for companies or entities established prior to the introduction of UBI will not be reissued to replace existing ones. 

Existing companies and entities in Hong Kong registered before 27 December 2023, which do not have a BRN (such as companies exempted from registration) have been assigned a dummy BRN. This dummy BRN is derived from their existing Company Number, CR Number, or Company Registration Number stored in the Registry’s records. This dummy BRN serves as the Unique Business Identifier (UBI) for these entities.  

The public can find the BRN associated with a company/entity using its previous CR No., and vice versa, through the “Quick Search > CR No. / BRN Mapping” tool on the Registry’s e-Services Portal. 

Where is the BRN used?

• The BRN serves as the identifier in communications with government departments and businesses. 
• After the implementation of the UBI, all specified forms and documents filed with the Registry must use the BRN. 
• The Electronic Search Services of the Registry utilizes the BRN as the primary number for searching and identifying companies or entities. 

What are the benefits of having a BRN?

A BRN can be useful for business advancement. With your BRN, you can: 

• Ensure adherence to tax regulations: The BRN serves as a tax identification number, used for filing various tax forms and conducting audits to review a business’s financial records. 
• Optimize operational efficiency: As an identifier, the BRN enables quicker recognition by government departments and other entities, thereby enhancing business operations. It can also allow businesses to streamline such processes as tax compliance, licensing, or permit acquisition. 
• Simplify financial transactions: The BRN is pivotal in facilitating precise and efficient financial transactions as a tax identification number. It can also: act as a routing transit number for banks, thereby ensuring accurate currency transfers; and improving security during transactions.  
• Reduce possible errors: errors caused by the use of different identifiers in identifying the same entity.

In conclusion, the Business Registration Number (BRN) is essential for regulatory compliance and operational efficiency in Hong Kong. It serves as a crucial identifier in dealings with government agencies, financial institutions, and in business transactions. Understanding the use of the BRN is key for businesses aiming to thrive and expand in Hong Kong’s competitive market.

The post Implementation of a New Unique Business Identifier (UBI) for Hong Kong  appeared first on MyBusiness in Asia.

Our comprehensive guide to company incorporation below offers a detailed, step-by-step roadmap on how to set up a company, empowering you to take control and successfully launch your company in Hong Kong.

• Pre-Registration Steps
• Register Your Company In Hong Kong
• Post-Registration Steps
• MBiA’s Hong Kong Preincorporation Checklist

Pre-Registration Steps

Before registering your company in Hong Kong, it is important to undertake four main steps:

1. Propose Your Company Name

When choosing your company name, make sure it adheres to the general requirements and restrictions. Specifically, although the company name can be in either English (must end with “Limited”) or Chinese (must end with “有限公司 “), using a combination of both languages is restricted. The proposed name must be unique, free from any criminal or offensive implications. It is also important to refrain from suggesting any connection to government entities, and from infringing trademarks or brand names.

2. Decide On Key Business Details

Before kickstarting your business, make sure you have readily available information about your business, including the nature of your business activities and its physical location.

3. Choose The Registered Address

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

• It must be a physical address situated within Hong Kong, a P.O. Box or virtual office is not eligible.
• The address must be publicly accessible during regular business hours.

4. Decide On Key Personnel And Share Capital Structure

Key Personnel

• Directors: Hong Kong company formation requires a minimum of 1 director. There is no limit on the number of directors, their nationality, or residency, as long as they are above 18. When registering for a company, details regarding the director(s)’ full name, residential address, HKID card and/or passport number must be provided. 
• Shareholder: A registered company must have at least one shareholder. Details regarding the shareholder(s)’ full name and residential address must be provided. Additionally, if the shareholder is a corporate entity, there are also requirements for a business profile outlining the shareholder structure, as well as the authorized representative’s name and ID documents. 
• Company Secretary can be a Hong Kong resident individual or a registered company with the Trust or Company Service Provider. 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:

• Class of shares
• Number of shares
• Share capital to be subscribed (and issuing currency)
• The amount to be paid up

Register Your Company In Hong Kong

To register a Hong Kong company, verify if the proposed name is identical or too similar to any name already listed in the index of company names maintained by the Registrar. Submit required documents such as the Hong Kong application form, Articles of Association, and shareholder identification copies. If there are corporate shareholders, directors must sign and submit form NNC1. Upon approval, you will receive a Certificate of Incorporation either online or in person. Finally, obtain a Business Registration Certificate from the Inland Revenue Department. 

Apart from obtaining the business registration certificate, certain businesses are required to hold additional specific licenses for authorized activities in fields such as: banking, insurance, trust company, telecommunications, money service operation, funds operation. 

Post-Registration Steps

Following registration, the next five steps are crucial for your company to fully operate in Hong Kong. 

1. Hold the First Board Meeting 

Depending on its accounting reference period, a company must hold its Annual General Meeting (AGM) each financial year as follows:

For companies with a typical accounting reference period (12 months or less):

• Private companies and companies limited by guarantee: AGM must be held within 9 months after the end of the accounting reference period.
• Other companies: AGM must be held within 6 months after the end of the accounting reference period.

For companies with a first accounting reference period longer than 12 months:

• Private companies and companies limited by guarantee: AGM must be held within 9 months after the first anniversary of incorporation, or 3 months after the end of the accounting reference period, whichever is later.
• Other companies: AGM must be held within 6 months after the first anniversary of incorporation, or 3 months after the end of the accounting reference period, whichever is later.

2. Open A Corporate Bank Account 

Once the business has been registered, funding can be injected with a local Hong Kong bank account. Opening a corporate bank account can be more onerous and complicated than opening an account for an individual. Typically, Hong Kong banks require detailed documents regarding the business, directors, and shareholders. In-person appointments and interviews will be scheduled, even if the online application option might be available on their websites. 

3. Apply For An Employment Visa 

The primary visas used by employers in Hong Kong to hire foreign staff are the General Employment Policy (GEP) and the Admission Scheme for Mainland Talents and Professionals (ASMTP), often referred to as “Employment Visas.” 

To apply for an Employment Visa in Hong Kong, the company must demonstrate its financial stability, business plan, sufficient office space, and other required documents, as well as justify why the applicant is the best fit. The applicant needs a university degree or exceptional technical skills, along with supporting documents like transcripts and employment records. 

4. Notify The Business Registration Office Of Your Company’s Business Nature 

Local limited companies must inform the Business Registration Office in writing within one month from the actual commencement of business.  Details such as the business name, description, nature of business, business address, and the date when the business operations began are typically required. This notification can be submitted either by letter or by completing Form IRBR200. 

5. Appoint Auditors And Accountants For Financial Management 

By appointing auditors and accountants early on, newly incorporated companies in Hong Kong can establish robust financial management practices, maintain compliance with legal requirements, and ensure transparency and trustworthiness in their financial reporting. 

MBiA’s Hong Kong Pre-incorporation Checklist

To assist busy business owners in navigating their pre-incorporation process, we’ve crafted a detailed and concise checklist of step-by-step instructions on how to start a company in Hong Kong. This checklist offers a quick overview of all of the important tasks required for successful business incorporation.

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 Hong Kong’s Pre-incorporation checklist for free!

Let’s dive into our latest blogs to uncover everything you need to know before incorporating a company in Hong Kong!

• Expert Startup Incorporation Services In Hong Kong For Fast And Easy Registration
• All you need to know to create a company in Hong Kong
• Register a business in Hong-Kong
• Is Now the Perfect Time to Invest and Expand Your Business in Hong Kong?
• How to Easily Open a Hong Kong Limited Company from Abroad

The post Incorporating a company in Hong Kong appeared first on MyBusiness in Asia.