1.When
we have to
appoint
Auditors for the
Company?
A
company shall appoint an auditor within 3 months from the date of
incorporation unless it is exempted from audit requirements under
Section 205B or 205C of the Companies Act.
Back to top
|
2.When we have to register for GST (Goods
& Service Tax)?
You must register when:
• At the end of a quarter if your taxable supplies exceed S$1 million
for a quarter and the immediate past 3 quarters. Quarter refers to
March, June. September or December; or
• At any time if your taxable supplies are expected to exceed S$1
million for the next 12 months.
You can choose to register voluntarily when:
• You make taxable supplies below S$1 million annually; or
• You make Supply of Goods outside Singapore
• You provide Financial Services that are also international services
It is a condition that you must remain GST-registered for at least 2
years for voluntary registration. IRAS may also impose other conditions
e.g. the requirement of Security Deposits on a case-by-case basis.
Overseas companies must appoint an agent in Singapore to be responsible
for its GST matters and obligations when applying for GST registration.
Goods and Service Tax is like value added tax in some countries is
payable by an entity. In Singapore if any time the taxable supplies are
expected to exceed S$1 million in the next 12 months of operation in
Singapore.
You are required to register for GST, you must apply and register with
in 30 days of becoming liable to pay the tax as mentioned earlier Para.
Exports made out of Singapore are ‘ZERO’ rated and in order to claim
the GST you have suffered at the time of import or local purchase of
goods it is advisable to register for GST, even though you will not
exceed S$ 1 million business in any financial year.
For GST registration requirements and any other formalities, kindly
contact our Tax Dept for details and information or email
tax@nscpa2000.com
Back to top
|
3.Shall we maintain books of Accounts in US$?
If
your functional currency happens to be other than Singapore dollars,
considering your group companies overseas, the Singapore Company can
maintain the books of accounts in the functional currency. The
functional statements can also be presented in the functional currency.
Usually companies would like to maintain the books of accounts in US$
and it is possible if the functional currency of the group happens to
be US$. For more details you can refer to FRS 21 and interpretation INT
FRS 19 or consult your audit department for details.
Back to top
|
4.When we have to pay Skills Development Levy
(SDL)?
Payments of levy under the
skills development levy act (CAP.306) and the skills development levy
regulations 1991.
SDL is payable for all employees whose gross remuneration is less than
or equal to the salary ceiling of SGD 4,500/- per month and the
employees include casual, part-time, temporary and foreign workers
rendering services wholly or partly in Singapore.
Rate of contribution is 0.25% of employees’ gross remuneration* for the
month or $2 whichever is the greater (i.e. minimum of $2 is payable for
employees earning $200 or less)
Employers should make full payment on SDL together with the other
monthly contributions to the central Provident Fund (CPF) Board as CPF
is collecting SDL on behalf of the Singapore Workforce Development
Agency.
Back to top
|
5.When we have to Audit our Books of Accounts?
Exemptions from audit – Small
Exempt Private Companies
i. Dormant companies and exempt private companies with revenues not
exceeding $2.5m would be exempted from the audit requirement. This is
effective for financial year-end beginning on or after 15 May 2003.
ii. From 1 June 2004, the prescribed amount is increased to $5m for
financial year-end starting on or after 1 June 2004.
iii. Non-exempt private company (dormant) shall lodge its 'unaudited
accounts' together with the document 'Statement by a dormant company
exempt from audit requirements'
Back to top
|
6.When we have to File the Annual Return of
the Company?
A local company is required to
hold its Annual General Meeting (“AGM”)
within 18 months of its incorporation and present its accounts to its
shareholders. These accounts must not be made up to a date older than 6
months from the date of the AGM for a private company/unlisted public
company, or 4 months for a public listed company. Thereafter, an AGM
must be held once every calendar year but not later than 15 months from
the date of the last meeting. A company has to file its Annual Return
together with the accounts or the Exempt Private Company Certificate
online within one month from the date of the AGM. Failure to comply
with these statutory requirements may render the company and all its
officers liable to prosecution.
In addition, dormant companies and exempt private companies that are
exempt from audit requirements under Section 205B and 205C of the
Companies Act respectively are also required to file the directors'
statement required under Section 205B(4)(d), if their financial year
starts on or after 15 May 2003. For companies with more than one
director, the statement must be signed by at least 2 directors.
Back to top
|
7.What are the penalties for Non-Compliance?
PENALTIES FOR LATE LODGEMENT
(ANNUAL RETURN/FORMS).
|
Length
of Default (Days)
|
Late Lodgement Fee
|
|
Not more
than 30 days
|
$60
|
|
Between 31
days to 60 days
(Both days inclusive)
|
$120
|
|
Between 61
days to 90 days
(Both days inclusive)
|
$170
|
|
Between 91
days to 180 days
(Both days inclusive)
|
$220
|
|
Between
181 days to 365 days (Both days inclusive)
|
$250
|
|
Between
366 days to 730 days (Both days inclusive)
|
$350
|
|
Between
731 days to 1095 days (Both days inclusive)
|
$350
|
|
More than
1096 days
|
$350
|
Note: The Companies Act also
provides that the Registrar may impose up to $1000 composition fine for
each offence committed.
Back
to top
|
8.When Summons will be issued to the
Directors of the Company?
Those who are not following the
ACRA regulations and not filing the Annual Return in spite of reminders
sent by ACRA, then summons will be issued to the Directors of the
company. If you don’t file the Annual Return even after receiving the
summons from ACRA before the mentioned date then a Warrant of Arrest
will be issued to the respective Directors of the company.
Back to top
|
9.What are the procedures when there are
changes in the Company?
a) Appointment/Resignation/Removal of Director/Secretary – The changes
has to be filed within one month from the date of resolution. Every
company must appoint a secretary within 6 months of the date of
incorporation.
b) Changes in the Particulars of Director/Secretary/Shareholders - The
Company at all times must file any changes in the particulars of the
Director
c) Change of Registered Office- The Company must notify the ACRA within
14 days from the date of change.
d) Allotment of Shares- The company must file the allotment within 14
days from the date of the resolution
Back to top
|
10.What is the Importance of Company
Registration No.?
With effect from 1st October 2004, the Companies Act will require every
company to have the registration number (in addition to its registered
name) on all business letters, statements of account, invoices,
official notices and publications of or supporting to be issued or
signed by or on behalf of the company. Bills of exchange, promissory
notes, endorsements, cheques, orders, receipts and letters of credit
issued by or purporting to be issued or signed by or on behalf of the
company only needs to have the company's registered name appearing on
them. The rationale for the amendment is that the company registration
number acts as a unique identifier distinguishing one company from
another.
Back to top
|
11.How to open a CPF Account and make
Contributions?
Now all employers with 10 or fewer employees can submit CPF via the 300
AXS Stations Island wide!
With AXS stations, you can submit your CPF contribution details without
computers or the need to look for Internet access. CPF e-Submission is
now right at your doorstep with 300 AXS Stations conveniently located
island wide. This is an extra convenience you enjoy as compared to
manual submission. Pay with NETS or cash card at the AXS stations and
you don’t have to worry about late or missing cheque anymore.
It takes just a few steps to complete your CPF submission at AXS
stations:
1) Select “Employer Contribution”
2) Log on with your 7- digit Employer reference Number followed by your
CPF Account Number
3) Enter details of payment
4) Select mode of payment
For further details visit www.cpf.gov.sg
Back to top
|
12.When a company has to appoint C. Secretary?
Every company must appoint a secretary within 6 months of the date of
incorporation.
Back to top
|
13.When a Company holds its AGM ?
A company is required to hold its first AGM within 18 months after its
incorporation Under Section 175. Subsequent AGMs must be held every
calendar year and the interval between AGMs should not be more than 15
months.
Back to top
|
14.When you have to file the Annual return
for the company Incorporated in Singapore?
A company has to file its Annual Return together with the accounts or
the Exempt Private Company Certificate online within one month from the
date of the AGM. These accounts must not be made up to a date older
than 6 months from the date of the AGM for a private company/unlisted
public company, or 4 months for a public listed company. Failure to
comply with these statutory requirements may render the company and all
its officers liable to prosecution.
Back to top
|
15.What are the penalties for non-compliance
for the Annual return to ACRA?
|
Length of Default
(Days)
|
Late Lodgement Fee
|
|
Not more than 30 days
|
$60
|
|
Between 31 days to 60 days
(Both days inclusive)
|
$120
|
|
Between 61 days to 90 days
(Both days inclusive)
|
$170
|
|
Between 91 days to 180 days
(Both days inclusive)
|
$220
|
|
Between 181 days to 365 days
(Both days inclusive)
|
$250
|
|
Between 366 days to 730 days
(Both days inclusive)
|
$350
|
|
Between 731 days to 1095 days
(Both days inclusive)
|
$350
|
|
More than 1096 days
|
$350
|
Note: The Companies Act also
provides that the Registrar may impose up to $1000 composition fine for
each offence committed.
Back to top
|
16.When you have to file the ECI (Estimated
Chargeable Income)?
The company has to file to the income tax department the estimated
chargeable income within 3 months from the date of closing the books of
accounts of the company. If the company is dormant and is not engaged
in any business, you still need to file a ‘NIL’ income statement to the
department.
If you fail to do so, the tax department will estimate the chargeable
income and expect the tax to be payable within one month of the
assessment order being issued. Hence, we request you to liaise with us
to file your returns for your company on time.
Please ignore this letter if your company has held its AGM and filed
the AR.
Back to top
|
17.Who is a non-resident Indian (NRI)?
Non-resident Indians (NRIs) are Indian citizens who stay abroad for
employment or other purposes. NRIs include Indian citizens working
abroad on assignments with foreign governments/government agencies or
international/regional agencies such as the UN, IMF and World Bank. It
also includes Indian officials (Centre, State and public sector
undertakings) deputed abroad on temporary assignments or posted to
their offices (including Indian diplomatic missions) abroad.
Back to top
|
18.What is an OCB?
Overseas Corporate Bodies (OCBs) are bodies predominantly owned by
individuals of Indian nationality or origin resident outside India and
include overseas companies, partnership firms, societies and other
corporate bodies which are owned, directly or indirectly, to the extent
of atleast 60% by individuals of Indian nationality or origin resident
outside India as also overseas trusts in which atleast 60% of the
beneficial interest is irrevocable held by such persons. Such ownership
interest should be actually held by them and not in the capacity as
nominees, The various facilities granted to NRIs are also available
with certain exceptions to OCBs so long as the ownership/beneficial
interest held in them by NRIs continues to be at least 60%.
Back to top
|
19.What are the investment opportunities
available to NRIs?
There are two types of investment opportunities available to NRIs:
1.Investment with repatriation benefits
2.Investment under non-repatriation basis
Back to top
|
20.I am a NRI. How do I trade through the
secondary market?
You can trade in shares and debentures through any member of a stock
exchange, after obtaining necessary RBI permission. To obtain RBI
permission, you need to open a bank account in India (under the
Portfolio Management Scheme) with a designated bank. Through this
bank,the RPI form is forwarded to RBI seeking permission to trade in
shares and debentures from the secondary market on a repatriable basis.
This form is to be filled by the client in duplicate.
RBI permission is blanket permission valid for five years. Investments
on a non-repatriation basis can also be made from NRO accounts and also
from funds remitted directly. For this, an NRI form must be submitted
to RBI.
Back to top
|
21.Do I need to get approval from RBI to buy
and sell shares in the Indian capital market?
Yes, RBI approval is necessary for NRI investors to deal in the Indian
capital market.
Back to top
|
22.Is it necessary for me to get direct RBI
permission to invest in Indian companies?
No, the RBI has granted permission to authorised dealer banks to
purchase such shares/Debentures on behalf of NRIs/OCBs.
Back to top
|
23.What are the formalities required for
opening a bank account?
It is preferable that NRI investors deal only with one designated bank
branch under portfolio investment services. To open an account, an
undertaking letter, the bank account opening form and the following
annexures should be submitted:
1.Two photographs signed across.
2.Copy of passport (first four pages and last page) and visa. These
copies should be attested by the Bank Branch Manager (Overseas)/ Notary
Public/an official of the Indian Embassy in the country of residence.
3.RPI form for repatriating the benefits or NRI form for
non-repatriating the benefits.
Back to top
|
|
|
|
