About Operational Requirements
After finishing your company’s registration in Singapore, there are still operation requirements you need to do before you can open. There are a lot of operational matters to consider before your company can start operations. These include getting work passes, finding an office space, and those related to statutory regulations.
Singapore company registration is very easy and straightforward. As long as all your documents are in the right order and complete, you will be ready to start your business operations in Singapore right away.
Here are the operational requirements you need for your incorporated company in Singapore:
The Documents You Will Receive
After incorporating your company in Singapore, you will receive certain documents. Further, these documents are part of the standard procedure and you should not worry about them.
When the Company Registrar has finished with you, they will send you an email. In the email, there is a confirmation that your company is successfully formed and your registration number will be in the same email. Make sure that you save this message because the registration number is very important and it is only assigned to you.
Open a Bank Account
When you have successfully incorporated your company, the next thing to do is to open a bank account for it. Since Singapore is a financial hub, there are many local and foreign banks where you can open a corporate account. These banks include DBS, OCBC, Standard Chartered, UOB, Maybank, Citibank, Credit Suisse, and ABN Amro Bank NV.
Every bank has its own rules and requirements like some banks will ask you to pay a set-up fee to open a corporate bank account, but not all. The quantum is not the same for every bank.
Apply for the Business Licenses
For specific types of business, it is necessary to get a business license in a legal and ethical way. There are plenty of ways to start a Singapore company and a lot of them need a license. If your business is one of these areas, you will need it: import and export, restaurant, employment agency, educational institute, travel agency, and financial services.
Foreigners will need a work pass if they want to live and work in Singapore legally. The types of work pass in Singapore are the Employment Pass (EP), Work Permit (WP), and S Pass. Each kind of pass has its rules and requirements.
EP does not have an employment quota. However, for the WP and S Pass, a company must employ local staff before they can hire foreign staff.
If the company’s yearly revenue is more than S$1 million, it is necessary to register for a Goods and Services Tax (GST). This is a name specifically given to this kind of tax and in other countries, it is known as the Value Added Tax (VAT) or Sales Tax. If your company does not go over the mentioned limit, it is not necessary to register for a GST. Once your company does, you should register and charge customers an additional 7% on all your goods and services. You must pay this sum to the government.
Recruitment and Staffing
Depending on the nature of your business, you might have to hire more manpower. The population of Singapore is educated and there are necessary skills to fill different roles in different industries. The different channels getting manpower for your business helps you through job portals, internal referrals or recruitment firms.
Similar to other countries, Singapore supports employing local staff. However, it is also welcoming to foreign talent with the important background, skills and experience. It is expected that these skills are useful to the local staff so their base grows and develops.
You must consider the mandatory contributions when employing staff including the Central Provident Fund (CPF) and the Singapore Rs. There is a Skills Development Levy (SDL) for all the staff. You must also provide payslips to your staff and important information.
Register for the Central Provident Fund (CPF)
According to the ministry of manpower, a company in Singapore must pay the share of employees in CPF contributions every month if they are paid more than $50/month. The company must recover the employee’s share from their wages.
The CPF contributions are for the following Singapore citizens and permanent residents who:
- Work in Singapore under the Contract of Service and
- Employed under permanent, casual, or part-time
You must get insurance for your business, insurance for your worker’s compensation, and any insurance specific for your business. A good broker can be helpful in this process. Your insurance should expand while the business grows.
Singapore is one of the world’s safest countries and has a very low crime rate. Further, Singapore is divided into 5 areas – North, East, South, West, and Central areas. All areas in Singapore have residential spaces and there are supermarkets, shopping malls, and amenities. The kind of accommodation found in Singapore are private housings, and rental costs that are based on the kind of area and housing you want to live in. if you try renting landed homes or condominiums, you must be prepared to pay a higher rental cost. They normally have facilities like a swimming pool, tennis court, and function rooms.
Register for the SDL
The Skills Development Levy (SDL) Act requires employees who render services in Singapore to pay an SDL monthly. Further, this includes foreign employees and those who are employed on a part-time, casual, or temporary basis. The gardeners, domestic servants, or chauffeurs are not covered by this act. The SDL is 0.25% of each employee’s monthly remuneration, with a minimum of $2 payable and less than $11.25.
These are the operational requirements that you must do after you incorporate in Singapore. If you need incorporation services, you can contact 3E Accounting for assistance.