Singapore Accounting And Tax

Why Choose Singapore for Your Business?

Singapore’s business-friendly tax environment offers a host of benefits, making it one of the best places to set up and operate your business. Here’s why:

Simplified Taxation

Singapore’s tax system is transparent and easy to navigate, ensuring a smooth experience for businesses without the complexity of burdensome tax regulations.

Favorable Policies and Low Tax Rates

With policies designed to support business growth and tax rates that encourage enterprise, Singapore offers significant financial advantages for both local and foreign businesses.

World-Class System

Singapore's tax framework is internationally recognized for its efficiency and effectiveness, offering businesses a reliable and stable environment for growth.

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What You Need to Know About Taxes and Accounting

Before you incorporate your company in Singapore, it’s essential to understand key requirements and steps to ensure a smooth and successful setup.

According to Singapore’s latest accounting standards

When a Singaporean company is formed, the company must follow the rules of the Singapore Companies Act. Compliance involves annual filings with ACRA and IRAS. As per Singapore law, original accounting and tax certificates must be kept for at least 5 years, organized chronologically or by contract occurrence.

  • Decide on the type of business (Private Limited Company, Sole Proprietorship, or Partnership).
  • Choose a unique company name and get it approved by the Accounting and Corporate Regulatory Authority (ACRA).
  • Choose a unique company name and get it approved by the Accounting and Corporate Regulatory Authority (ACRA).
  • Choose a unique company name and get it approved by the Accounting and Corporate Regulatory Authority (ACRA).
  • Choose a unique company name and get it approved by the Accounting and Corporate Regulatory Authority (ACRA).
  • Choose a unique company name and get it approved by the Accounting and Corporate Regulatory Authority (ACRA).
  • Yobbi will guide you through this process to ensure your company name and structure align with your business goals.

Appoint Company Directors and Shareholders

You’ll need to appoint at least one local director (Singapore citizen, permanent resident, or Employment Pass holder), as well as one shareholder for your company. The structure of your shareholders and the share capital you set are important decisions for the business’s future. With a minimum share capital requirement of just SGD 1, it’s a straightforward process that we will help you complete in compliance with Singapore’s legal requirements.

  • Appoint at least one director who is a Singapore resident (Singaporean, PR, or Employment Pass holder).
  • Appoint at least one shareholder (can be individual or corporate).
  • Decide on the share capital (minimum SGD 1).
  • Identification Proof: A copy of the directors' and shareholders' identification documents (e.g., passport, NRIC for residents).
  • Proof of Residential Address: A recent utility bill or bank statement for directors and shareholders.
  • Consent to Act as Director: A signed consent form from each director agreeing to take up the role.
  • Identification Documents: Passport copy or NRIC for directors and shareholders.
  • Proof of Residential Address: A utility bill, bank statement, or other official document that shows your residential address (for directors and shareholders).
  • Consent to Act as Director Form: A document where the director formally consents to taking the director position.
  • Shareholder Agreement (Optional): A document that may outline the rights and obligations between the company’s shareholders (useful for internal purposes).
  • At least one director must be a Singapore resident (Singaporean, PR, or Employment Pass holder). If you are not a Singapore resident, you can appoint a local nominee director. (Offered by service specialists, such as Yobbi Consultancy.)
  • A company can have up to 50 shareholders, with foreign ownership allowed.
  • Yobbi will assist you in meeting the requirements for directors and shareholders.

Provide a Registered Office Address and Company Secretary

In Singapore, your business must have a physical office address for registration—this can be a commercial office or a service address. Additionally, you must appoint a company secretary within six months of incorporation. This person ensures your company meets all ongoing compliance obligations. We will secure a local address and appoint a qualified secretary on your behalf to keep your business legally sound.

  • Provide a local Singapore address for your company’s registration.
  • Appoint a qualified company secretary within 6 months of incorporation.
  • Registered Office Address Details: Could be your office location or a service provider’s address.
  • Appointment of Company Secretary: Must be done within 6 months of incorporation.
  • Registered Office Address Proof: This could include a rental agreement or office lease that serves as the company's official address in Singapore.
  • Appointment Letter for Company Secretary: A formal letter appointing a qualified individual or service provider as the company secretary.
  • Office Lease or Agreement (if applicable): If you are using a physical office, this will be required to show your registered address.
  • Nominee Secretary Agreement (if applicable): In cases where you appoint a service provider for the company secretary role.
  • The registered office address cannot be a P.O. Box and must be in Singapore.
  • A company secretary must be a Singapore resident and must be appointed within 6 months of incorporation. The secretary ensures legal compliance and filing of annual returns.
  • Yobbi will ensure you have a registered address and a qualified company secretary in place.

Prepare and Submit Required Documents

You’ll need to prepare several documents, such as your company constitution, a list of directors and shareholders, and information on your business activities. These documents must be submitted to ACRA for formal company registration. We will ensure that your paperwork is accurate, complete, and submitted promptly to avoid delays in the registration process.

  • Prepare the company constitution (rules for company operation).
  • Submit your incorporation documents, including company name, directors, shareholders, and constitution to ACRA.
  • Company Constitution: A document that outlines how the company will operate, detailing shareholder rights, the role of directors, and other key company rules.
  • Directors' and Shareholders' Information: Full names, addresses, and other personal details.
  • Business Profile (if applicable): Required for businesses in specific industries that need additional licenses.
  • Company Constitution: A legal document that specifies how the company will operate. You can use a template or draft your own constitution.
  • Directors' and Shareholders' Information: Full names, addresses, identification numbers, and other personal details for all directors and shareholders.
  • Business Profile: For businesses that need to apply for licenses (e.g., food and beverage, education, healthcare), this profile may be required.
  • Additional Business Licenses/Permits: Any other industry-specific permits required by regulatory bodies (e.g., Ministry of Health, NEA, etc.).
  • Power of Attorney (if applicable): If someone else is submitting the documents on behalf of the company owner.
  • The company constitution is mandatory for incorporation in Singapore. You can either draft your own or use a template provided by us, Yobbi Consultancy.
  • Ensure all information is accurate, as ACRA uses these details to process your incorporation application.
  • Yobbi will guide you in preparing and submitting all required documents efficiently.

Open a Corporate Bank Account and Obtain Licenses

Once your company is incorporated, you’ll need to set up a corporate bank account for your business finances. Additionally, depending on your business activities, you may need specific licenses or permits. For example, if your annual revenue exceeds SGD 1 million, you’ll need to register for Goods and Services Tax (GST). We will assist you with both banking and securing any necessary licenses, ensuring everything is in place for a smooth operation.

  • Once incorporated, open a corporate bank account to manage finances.
  • Apply for necessary business licenses or permits (if applicable).
  • If your annual revenue exceeds SGD 1 million, register for Goods and Services Tax (GST) with IRAS.
  • Company Incorporation Documents: Certificate of Incorporation, Company Constitution, and ACRA Business Profile.
  • Directors' Identification and Proof of Address (for KYC purposes).
  • Business Plan or Summary (sometimes requested by banks to understand your business model).
  • Company Incorporation Documents: Includes the Certificate of Incorporation, Company Constitution, and the Business Profile provided by ACRA after incorporation.
  • Directors’ Identification Documents: Passport copy or NRIC (for Singapore residents) for all company directors.
  • Proof of Address for Directors: Utility bills or bank statements showing the residential addresses of the directors.
  • Business Plan: Some banks may request a summary of your business model or a formal business plan when opening a corporate account.
  • Bank’s KYC Forms: Know Your Customer (KYC) forms that the bank will require for opening the account.
  • GST Registration (if applicable): If your business’s annual revenue exceeds SGD 1 million, you must register for Goods and Services Tax (GST) with the Inland Revenue Authority of Singapore (IRAS).
  • Additional Licenses: Any permits or licenses necessary to operate in your industry (e.g., food handling license, educational institution license, etc.).
  • Different banks may have varying requirements for opening a corporate account, so it's important to inquire about documentation in advance. Be ready for a meeting at the bank to provide your company’s business details.
  • Ensure that you apply for the necessary business licenses or permits based on the nature of your business. For example, businesses in food and beverage, education, or healthcare require special permits.
  • If your annual revenue exceeds SGD 1 million, you must register for Goods and Services Tax (GST) with the Inland Revenue Authority of Singapore (IRAS).
  • Yobbi will assist you in opening your corporate bank account and securing any necessary licenses.

Get Started with Yobbi, in 3 Easy Steps!

  • Book a free consultation

    Fill out our easy Yobbi registration form and provide your business details and documents. It’s quick and hassle-free!

  • Yobbi Guardianship Services

    Meet our experts

    Sit back and relax while we take care of everything – from submitting your documents to ACRA to handling all the legal and regulatory steps. There's no need for you to be physically present in Singapore.

  • Yobbi Singapore Visa

    We will take care of the rest

    Once everything is completed, we’ll notify you that your company registration is successfully done and ready to operate!

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According to Singapore’s latest accounting standards

When a Singaporean company is formed, the company must follow the rules of the Singapore Companies Act. Compliance involves annual filings with ACRA and IRAS. As per Singapore law, original accounting and tax certificates must be kept for at least 5 years, organized chronologically or by contract occurrence.

  • Bank statements, Contracts, Invoices
  • Receipt, Payment Voucher
  • Logistics Documents, Shipping Waybills, Bills of Lading, etc
  • Letter of Credit, Credit Card Receipt
  • Payroll Calculation Summary
  • CPF Contribution Receipt, CPF Calculation Statement
  • Year-end Bonus Calculation Sheet
  • Details of Changes in Shareholders’ Equity, such as: Capital Increase, Transfer, Additinal Issuance, etc
  • Certificate of Shareholders’ Paid-up Capital Payment
  • Others if applicable (If a company fails to submit its annual financial report on time, ACRA in Singapore may impose fines on the company. In severe cases, legal actions may be taken against the company.)
Our services include:
  • General Ledger Maintenance
  • Accounts Payable Ledger Maintenance
  • Accounts Receivable Maintenance
  • Bank Reconciliation
  • Fixed Assets Ledger Maintenance
  • Cash Flow or Budgeting
  • Financial Statements and Reports
  • Management Reporting (Differences in industries and company characteristics will impact the content and format of financial statements.)
The corporate income tax in Singapore is based on a company’s profits, with a rate of 17%

Although most companies aim to comply with their tax obligations, occasional errors may still occur due to lack of diligence or awareness. Errors can sometimes result in penalties for companies, such as receiving subpoenas from tax authorities. Utilizing the expertise of tax professionals, your company can effectively avoid the issues.

The Inland Revenue Authority of Singapore (IRAS) has announced a 50% corporate income tax rebate for all tax-paying companies, regardless of tax residency status. To qualify, companies must employ at least one Singapore citizen or permanent resident with CPF contributions, excluding shareholder-directors. Eligible companies will automatically receive a minimum of SGD 2,000 in CIT rebate cash.

Our services include:
  • Submit an estimated chargeable income
  • Calculations of tax, including income statements and income tax returns
  • Liaise with the Income Tax Department regarding tax assessments, objections, and correspondence
Tax exemption schemes for new companies

Any eligible newly registered company (as described below) is entitled to enjoy tax exemption in the first three years, as determined by tax authorities. Eligibility requirements:

  • Incorporated in Singapore
  • Tax resident in Singapore
  • The company should have fewer than 20 shareholders, with at least one individual shareholder holding a minimum of 10% of ordinary shares.

Partial Tax Exemption:

Chargeable Income (SGD) Exempt from Tax Exempt Income (SGD)
First 10,000 75% 7,500
Next 190,000 50% 95,000
Total 102,500

Start-up Tax Exemption:

Chargeable Income (SGD) Exempt from Tax Exempt Income (SGD)
First 100,000 75% 75,000
Next 100,000 50% 50,000
Total 125,000
Regarding the compliance of corporate income tax filing obligations for companies:
  • The deadline for filing tax returns is November 30 each year
  • Mandatory for all companies to file electronically
  • The deadline for filing Estimated Chargeable Income (ECI) is within 3 months of the end of the company’s financial year
  • If your company meets certain criteria, it’s not required to submit ECI. Avoid common mistakes such as false claims for non-deductible expenses
  • If the annual revenue does not exceed 5 million SGD and there is no taxable income, ECI filing may be waived.
Singapore’s corporate consumption tax is known as the Goods and Services Tax (GST).
Goods and Services Tax is a broad-based tax levied on goods imported into Singapore (collected by Singapore Customs) and on almost all goods and services in Singapore. In other countries, consumption tax is called Value Added Tax (VAT).
  • The current GST in Singapore is 9%.
Register for GST

All companies with an annual taxable income exceeding S$1 million or anticipated to exceed S$1 million must register for the Goods and Services Tax (GST). These companies are required to register for GST within 30 days of reaching this threshold.

  • You also have the option to voluntarily register for GST. Approval for voluntary registration will be at the discretion of the Comptroller of GST in Singapore. Once approved, you’ll need to maintain the registration for a minimum of two years.
  • You must file your GST return with IRAS within one month of the end of each prescribed accounting period, usually quarterly.
  • You should reimburse your output and input tax on your GST return.
  • The difference between output tax and input tax is net GST payable to or refunded by IRAS.
  • Business records for 5 years, or records of all GST-related transactions, need to be kept. Records include tax invoices, receipts, and credit documents.
GST Billing and Charges
Once you register for GST, you’re required to charge GST at the prevailing tax rate on your supplies. This tax charged and collected is referred to as Output Tax. It needs to be remitted to the IRAS after collection.
 
GST generated from your business purchases and expenses (including imported goods) is referred to as Input Tax. If your business meets the conditions for claiming Input Tax, you can claim Input Tax on your purchases and expenditures. This mechanism of offsetting Input Tax ensures that taxation occurs only on the value added at each stage of the supply chain.
 
Our services include:
  • GST registration or cancellation.
  • Prepare GST calculation forms and file GST returns. (If a business does not submit GST on time by the prescribed deadline, the penalty for late payment is S$200. Subsequent monthly GST filings will result in an additional penalty of S$200 per month, up to a maximum of S$10,000.)
Corporates can appropriately estimate and manage estimated tax payments based on business and revenue situation.
It is the estimated taxable income of the company by the Inland Revenue Authority of Singapore (IRAS). IRAS obliges companies to file ECIs electronically through the MyTax Portal.
From January 2017 onwards, this declaration became mandatory.
 
Income refers to the primary sources of revenue for the company, excluding items like gains from selling fixed assets. For an investment holding company, the main income sources would typically be investment earnings (such as interest and dividend income).
  • If there are no audited financial statements, you can refer to the company’s management accounts to report the amount of revenue.
  • If the amount of income reported according to the audited financial statements is different from the amount of income reported on the ECI form and there is no change in your ECI, you do not need to modify the income figure.
Personal Income Tax
Everyone is responsible for paying personal income tax. Personal income tax in Singapore is calculated based on an individual’s income level and the corresponding tax rate. Considering the potential tax savings, government incentives, and complex tax implications, it would be wise to consult with a tax expert. This helps you declare your income more efficiently and maximize the tax savings you are entitled to.
Our services include:
  • Prepare personal income tax calculations and submit tax returns.
  • Coordinating with the Inland Revenue Department (IRD) for matters related to income tax assessment, objections, and follow-up procedures.
Tax Resident or Non-Tax Resident
Tax residents and non-tax residents are subject to different personal income tax rates in any given tax year (fiscal year or assessment year). You would be considered a tax resident if you meet the following conditions:
  • Singapore Citizen
  • Singapore Permanent Resident (SPR) if you have applied for permanent residency in Singapore.
  • Or if you have resided in Singapore for at least 183 days in the preceding tax year, excluding company directors.
According to Singapore’s tax standards, if you do not meet any of these criteria, you will be considered a non-tax resident.
Personal income tax rate for non-tax residents
  • Employment Income: You are required to pay personal income tax on your employment income at a rate of 15% or the resident personal income tax rate, whichever is higher.
  • Other Income: Consultancy fees, advisory service fees, and other income. You are required to pay personal income tax to the IRAS at a rate of 20% on the director’s fees and consultancy service fees you receive.

Why Choose Yobbi for Accounting & Tax Services in Singapore?

At Yobbi Consultancy, we provide expert accounting and tax services tailored to your business needs, offering you key advantages that help you focus on your core business while we handle the rest.

Time-Saving

Our efficient process frees up your time, allowing you to focus on what matters most—growing your business.

Cost-Effective

We streamline accounting and tax procedures, helping you reduce operational expenses and improve your bottom line.

Ensuring Compliance

Stay fully compliant with Singapore’s tax regulations. We ensure your business meets all legal requirements, so you can operate with peace of mind.

Comprehensive Support

From accounting to strategic guidance, we provide end-to-end support, ensuring smooth operations and business success.

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Frequently Asked Questions

A Company Annual Review is a mandatory process for all companies in Singapore. It includes the filing of financial statements, holding of an Annual General Meeting (AGM), submission of tax returns, and updating company details with ACRA. Ensuring compliance with these requirements helps your company avoid legal and financial penalties.

An AGM must be held within 18 months after the company is registered, and then annually thereafter.

Missing the Annual General Meeting (AGM) deadline in Singapore can lead to significant consequences for both the company and its directors. Here’s a breakdown of what might happen:

  • Fines: Directors can face fines ranging from SGD 300 to SGD 1,000 for failing to hold the AGM.
  • Company Status Affected: The company may lose its good standing with ACRA and could be struck off the register.
  • Director Disqualification: Directors may be disqualified from holding office for up to 5 years.
  • Loss of Shareholder Trust: Missing the AGM damages relationships with shareholders and investors.
  • Inability to File Annual Returns: Failure to hold an AGM prevents the company from filing Annual Returns with ACRA.

Your tax return should be filed annually with IRAS based on your company’s profits. Yobbi Consultancy can assist with filing your corporate tax report.

Most companies need to submit audited financial statements, but small companies with revenue below SGD 10 million may be exempt.

The annual review process typically takes a few weeks to a few months. The timeline depends on factors like the complexity of your financial statements, scheduling the AGM, and filing requirements with ACRA and IRAS. On average, most companies complete the process within 1 to 2 months, but it may take longer for companies with more complex financials or scheduling delays. We can assist with the process, ensuring everything is handled efficiently and on time.

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