Local Resident Director
A foreign corporation setting foot in Singapore can have any amount of directors. However, at least one director should be one who is ‘ordinarily resident in Singapore’. This means that the person should be a citizen, permanent resident, or a person who has an employment pass. Anyone above the age of 18 can be appointed as a director.
Foreign companies planning to set up operations in Singapore must have a registered office, which should be open and accessible to public in normal working hours.
Each company should appoint an auditor within three months from the date of incorporation, unless it is exempted from audit specifications. In order to exempt audit requirements, a company should:
- Have individual shareholders
- Have less than 20 shareholders
- Have less than a $5 million annual turnover
General Sales Tax is an indirect tax, expressed usually as a percentage, applied to selling price of services and goods, provided by GST registered business entities. GST registration is required if:
- The company’s turnover is more than $1 million for the past 12 months
- The company’s turnover will exceed $1 million during the next 12 months
Depending upon the nature of your operations, your company may or may not require a business license. If you are planning to enter the health sector, or tobacco industry, you might require securing a license from the respective Singaporean authority.
Each company should be able to maintain accounting records for up to 5 years after the completion of transactions. These accounting records should include balance sheets, and profit and loss accounts to represent sales and other business transactions adequately.
Each company must file annual tax returns with the Revenue Authority and annual returns with the Company registrar. So, are you planning to enter Singapore as a business or a company? You will need to come up to these compliance standards to make sure that you grow and develop as a business. If all these compliance issues seem challenging, be sure to contact us for help!