What to keep track of while doing business
The main goal of all business owners is to grow and expand their company. To do that in Singapore, you will need to meet several obligations for a smoother sailing journey towards your goal.
If you’re a new business owner who wants to know what you need to do, here is some administration you will need to get settled before moving on to grow your business.
Hiring employees
All types of employment in Singapore is regulated by the government, so you will need to be acquainted with basic rules and regulations to comply with Singapore law. Here are just some of the common ones that you need to know:
- If you are hiring a foreign employee, you need to ensure that that they have secured a valid work pass.
- All employers need to make compulsory contributions to the Central Provident Fund (CPF) and Skills Development Levy (SDL).
Registering for a CPF account
To register for a CPF account, you will need a CorpPass account. A CorpPass is a digital identity of a business or other identity that helps you avoid extra paperwork and ensures cybersecurity, especially when you are dealing with many government agencies.
All businesses in Singapore must sign up for a CorpPass account. It is also the only login method for all transactions made with the government as of 2018.
Registration for CPF can be done on the CPF website.
After you’ve registered your account, you need to set up a Direct Debit between the CPF Board and local bank account using a Direct Debit Authorisation Form. Do take note that this takes 21 working days or longer to set up so do get it done as soon as you can.
Skills Development Fund
The Skills Development Levy (SDL) is a contribution made by your company that is pooled into the Skills Development Fund (SDF). This fund helps to train the Singapore workforce. All employees in Singapore will have to pay this levy monthly, no matter if you’re an established subsidiary or start-up.
The statutory SDL contribution rate is 0.25% of your employee’s monthly remuneration, with the minimum levy being $2 for employees earning below $800 a month. The maximum remuneration is capped at $11.25 a month for employees earning above $4500.
If you are non-compliant with the SDL, you will be penalised or held responsible under the stated rule.
Business insurance
Business insurance is one of the must-haves of every organisation – no matter what kind of business you are running, there will always be some sort of risk involved. Having business insurance ensures that you can carry on your daily activities with peace of mind.
There are several common types of insurance for businesses:
- Property Insurance
- Liability Insurance
- Business Income Insurance
- Business Owner’s Policy
- Worker’s Compensation Insurance
These are just some of the must-gets when it comes to insurance. There may be other essential ones depending on the nature of your business.
Goods and Service Tax (GST)
GST in Singapore is standardised at 7% on all goods imported into the country, and on goods and services within the country. However, not all businesses are required to register for GST.
You will only need to if:
- Your company has had more than $1 million in revenue in the last 12 months or;
- Your company is projected to have more than $1 million in revenue over the next 12 months.
If your company meets any of the requirements above, you will need to charge your customers an extra 7% that will be paid to the government and cannot be kept within the company.
You can register for GST directly on the IRAS website or call for a tax service provider for assistance.
Growing your company
As your business grows, it will benefit you to keep an eye on the above things mentioned and keep them up to date. If you have concerns on company incorporation or require business accounting and tax service providers, reach out to us at Swiftly were our experienced team will give you the help you need.
