4 reasons to have a professional corporate secretary for your Singapore Company

4 reasons why you should have a professional corporate secretary for your Singapore Company – Every company requires a few set of key office holders. You will require the director of the company that will be making executive decisions and also run the day to day work of the business. There is also the shareholders who usually are the one funding the business and also own the business as it is running. They will in turn appoint the directors that will be in charge of running the business.

Director’s work closely to deliver results for the betterment of the shareholders equity and therefore receive a salary or bonus.

There is also another set of company officials that are important to the running of the business and also the best to advise on the methods of running it. The corporate secretary is a key person in the running of your private limited company and making sure a few things are done right before you go ahead with either growing or selling your business. Let us share with you the 5 reasons why you should have a professional corporate secretary for your Singapore Company.

1. The corporate secretary ensures your corporate governance is done right

For most business owners that are first time starting up, you will have no idea what are some of the key concerns that you might have when it comes to corporate governance. Corporate governance might not be that much of a concern at birth of the company or when you are not funded by someone else. But once the business starts to mature and when other parties start to join the company, the differences in having a good corporate secretary versus not having one can be very clear.

Corporate governance also ensures timelines are met, there are many legal timelines to follow to make sure the meetings are in effect and an experienced corporate secretary will be a good person to have when you as an entrepreneur is not too familiar with such legal timelines.

2. Deadline reminders for busy business people

When you are busy running your business, you might miss timelines such as your AGM and tax submission dates. The good thing about having someone who is ready to remind you will outweigh many things. The corporate secretary of a company receives reminders as well and usually have a system to keep track of all the deadlines of their customers. With a good system in place, they will be able to alert you when the time is up to submit your annual return, do your AGM and make sure you do not miss any of them that might incur you late fees.

For most people who receive emails and forget them, this service will be great from the corporate secretarial services provider.

3. Advise you on legality of actions

Timelines and dates are very important in a legal document. If you need to give notice for a meeting to be effective, you need to give that notice.

The Corporate Secretary is well versed in this time lines and will be the best to advice how to make sure all processes are done legally.

Whether someone can or cannot appear at a meeting is also important, the corporate secretary will be able to give guidance when such disagreements appear.

4. Neutral person when there are arguments

Most businesses have multiple partners and directors. As a corporate secretary, you are suppose to be a neutral party in any discussions.

The corporate secretary will be able to give a fair opinion for the directors and shareholders to make decisions that will allow the best for the company and also for the shareholders.

The corporate secretary will also have to take the side of the company and not any of the members of the shareholder and directors.

 


K Cloud Accounting provides high quality corporate secretarial services in Singapore for Singapore startups and SMEs.

Contact us to find out how to work with us today!

4 reasons why you should have a professional corporate secretary for your Singapore Company

How to legally save/reduce your Singapore personal income taxes in 2019

How to legally save/reduce your Singapore personal income taxes in 2019 – Common question asked by many people in Singapore especially since the year has ended for the year of 2018 and we have about 3 months plus to start worrying about how much taxes you are needed to contribute to the building of our nation!

According to the IRAS website: https://www.iras.gov.sg/irashome/web/pages/taxCalendarListing.aspx , the due date for your personal income tax is 18 April 2019, for those who are not into e-filing, 15 April 2019 is the deadline for paper filing! So remember this date and do your filing as soon as possible, preferably now!

If you are filing through e-filing, here is the link: https://mytax.iras.gov.sg/ESVWeb/default.aspx

With the links provided and aside, lets start on the ways of How to legally save/reduce your Singapore personal income taxes in 2019, while we explain how Singapore’s tax works.

singapore personal income tax rate

Singapore personal income tax rate from IRAS website

Singapore follows a progressive income tax system where the lower income group pay little or no income tax whereas the rich will pay more of a percentage of their income as taxes. Taxes contribute to the public goods that everyone in Singapore uses. Singapore mainly derives her tax revenue from personal income tax, corporate tax and goods and services tax.

So based on this chart for those who make an income below $20,000 is exempted from paying any tax.

Whereas someone with an income above $320,000 pays 22% of the subsequent amounts in personal income taxes.

So lets take a scenario where you are a desk bound job holder working in the CBD making $3,500 per month.

Based on that figure: $3,500 x 12 = $42,000, your tax rate will be ($550 for the first $40,000) + (7% x the remaining $2,000) = $690

*did you know you do not need to pay your income taxes at one go and instead could pay through GIRO monthly? Use this link to do it: https://www.iras.gov.sg/irashome/Quick-Links/Payments/Applying-for-GIRO/*


So for someone who makes in excess of $40,000, the tax rate starts to climb sharply and there are legal ways to reduce taxes, this is very different from evading taxes! Do not confuse the two different terms. Also note that the best way to reduce taxes is actually to do your tax planning earlier on in the year. Your tax is calculated from the 1st of January of the year to the 31st of December of the the year being assessed. So even if you missed out on doing some of this moves in 2018, read this article and do something about reducing taxes in 2019!

So lets begin.

1. Contribute more into your personal or your parent’s CPF account

Everyone in Singapore who holds a full time job in Singapore contributes to their on personal Central Provident Fund savings. (CPF) So this is also one of the main means of savings for your retirement.

The ordinary wages limit for contribution is $6000 for CPF. And the annual voluntary contribution limit is $37,740.

You could contribute to your parent’s CPF accounts to increase that limit because remember, when you contribute to CPF, you get to get some relief from it.

 

2. Donating to a charitable cause

Not every charitable cause is tax deductible. For those that are clear cut deductible, make sure they are institutions of public character: https://www.charities.gov.sg/setting-up-a-charity/Pages/About-Charities-And-IPCs.aspx

Donations can be counted as relief for you to reduce your tax burdens for the year.

So make more donations to causes you care about today! Oh and don’t forget the official receipt as proof.

3. Claim NSmen relief if you’re married

If the husband is a key appointment holder, you can claim up to $5,000 of relief, and for the married person, wives can claim $750 relief on their income.

Of course the relief amounts are higher for Key Appointment holders and also when they are active. For those who are not familiar, here is the link to learn more about NSmen relief and also spouse relief for NSmen: https://www.iras.gov.sg/irashome/Individuals/Locals/Working-Out-Your-Taxes/Deductions-for-Individuals/NSman-Relief–Self–Wife-and-Parent-/

 

4. Working mother child relief

For anyone who has studied Singapore taxes and tax relief, the working mother child relief (WMCR) is definitely the single most effective and powerful tax relief anyone can get.

As the name implies, you need to be a mother and have a child. Either you own, or adopted. Sorry gentlemen, this doesn’t apply for you.

So according to the link on IRAS website for this relief: https://www.iras.gov.sg/irashome/Individuals/Locals/Working-Out-Your-Taxes/Deductions-for-Individuals/Working-Mother-s-Child-Relief–WMCR-/

The Working Mother’s Child Relief (WMCR) is given to:

  • Reward families with children who are Singapore Citizens
  • Encourage parents to take up Singapore citizenship for their children
  • Encourage married women to remain in the workforce after having children

Single or male taxpayers are not eligible for this relief.

Child Order WMCR Amount
1st 15% of mother’s earned income
2nd 20% of mother’s earned income
3rd and beyond 25% of mother’s earned income

So the amount of a mother’s income that can be deducted can be seen from the table above. For the first child you get to deduct 15% of the amount of earned income to be taxed, the second child you add another 20% and 25% for the 3rd child onward. Do note that there is a cap on the amount of relief you can claim on a child and also the amount you can claim personally, so there is a limit to this!

5. There is a relief cap for total tax relief

Currently the tax relief is capped at $80,000. So the ones that are affected will be those who are definitely making more than $80,000 a year and able to claim a relief of more than $80,000.

Here is the link for the relief information: https://www.iras.gov.sg/irashome/Individuals/Locals/Working-Out-Your-Taxes/Deductions-for-Individuals–Reliefs–Expenses–Donations-/#title7

 


Here are 5 easy ways to help you legally reduce taxes if you’re making an income from either a salaried job or a directorship.

For self employed persons or business owners, there are ways where you could use the startup tax exemptions of Private limited companies to reduce taxes legally as well. There are also expenses that can be legally claimed if you decide to start up a business at home and contribute towards corporate taxes instead of personal taxes.

K Cloud Accounting Pte Ltd is a full suite services company that works with companies from all kinds of industry in Singapore. We work closely with Startups to provide the best advise for their growth and work along side them to grow their companies and capabilities.

If you are keen to get some assistance on tax advisory services or tax planning services, do set up a meeting for discussion.

How to legally save/reduce your Singapore personal income taxes in 2019

How Xero Accounting Software saves you time and money

There are many cloud based accounting software in the market right now. Accounting has over the years really changed a lot from the days when paper and pen was used and also when beads are suppose to mean something in calculation. We have slowly translated to using real books to keep track of numbers of transaction and also who it was transacted with and now we moved on to software on the computer that is based on the hard drive or server. We slowly evolved into online based platform where customers are able to check on accounting details as and when they want to.

Xero Accounting Software is slowly becoming one of the leading software in Singapore because of various reasons that we will like to discuss with our potential customers. We will also like to share how we as Xero Advisors could take advantage of this software to provide high quality accounting services for our customers who require high level of standards when it comes to accounting requirements.

1. Bank Reconciliation done digitally

Any accountant will know that the toughest part of doing bookkeeping is the actual work of doing bank reconciliation. The bank records need to tally with the cheque records and also your invoices and this process is very time consuming. With many bank statement pages, comes way more work to trying to tally every transaction.

Most of your time is spend doing something that can be easily done by technology and this is where Xero Accounting Software Singapore helps to cut down on the actual time needed for accounting and bookkeeping work using the bank reconciliation function it has with the banks in Singapore.

UOB and DBS are currently linked up and OCBC is going to join in soon. We look forward to more banks working with XERO to provide this service for Xero Clients.

2. Ease to invoicing and quotations

Startup founders and young businessman do not like to have to go back to office just to get invoicing done. Most business people are on the move all the time. How best it is to have the invoicing and quotation process done easily with an application.

Xero accounting software is able to assist with such needs through a smart phone application that can be used to issue invoices and quotations on the go.

The application is easy to use and has quite a number of flexibility in allowing you to customize the look and style of the invoice and also to be able to input email address for your customer to easily accept the quote through your emails.

3. Around the clock and around the world access

When you are someone who goes around the world a lot to do business, the easy thing to monitor your business is to have access to this data world wide. How best than to have the information in the cloud. Xero is a cloud based accounting software that you can access from anywhere around the world as long as you have internet access. Go through your web browser for the full accounting software or use the application to do most of the basic accounting work that you need to carry out.

There is also 2FA functions that allow you to have added security when it comes to making sure your accounting data do not get leaked because of a misplaced password.

 


 

K Cloud Accounting is glad to assist you if you require help and training for your Xero accounting software. We are accounting services providers who are keen to work closely with you to deliver high quality work for your company in Singapore.

Contact us to find out more about how we can work together to assist you in your management service requirements.

 

Hopes and Wishes for Singapore Budget 2019

2018 was quite a normal year for most businesses in Singapore. What wasn’t really normal was the trade war that has affected the businesses that are directly engaged in the crosshairs of both China and the USA and that would be those involved in trading. With such headwinds still building up with not much of a clear sign of clearing up, we expect things to remain equally challenging for those in the trading sector.

Oil and Gas hasn’t seen much of a big gain and has been fairly still on the low side and with the recent fall of oil prices, unlikely to make much of a recovery this year with the trade war still pretty much in full swing.

The world economy has shifted towards autonomous production and services. Gone are the days where industries that rely on high volume of manpower continue to rely on high volume of manpower.

Singapore will continuously face the challenges of the new world where production and services get lower in cost and price pressures will be to reduce prices overall. We will see some of the lower level jobs slowly move overseas even further and also some financial jobs that are more basic to start shifting to our neighbours.

Some of the businesses in Singapore are therefore seeking assistance and we are looking forward to a few things from the upcoming budget and hope to see good progress for the nation from it:

1. Continuing its support to digitize the economy

The economy which has its main focus in services especially financial services will need to keep growing to keep the economy of the country going strong. The government has over the years supported the digitizing of the economy and we hope to see more being done on this portions to help other service sector businesses to grow further down the digital stage. With the advent of E-Commerce, more and more retail businesses are suffering great competition and could really need some help with going online.

2. Supporting those who have to and need to shift overseas to cut cost

High cost in terms of manpower and land in Singapore is pushing most factories in Singapore out. There are barely any space left for Singapore manufacturing to chug ahead, for those that are low margins, the government could provide some support through its agencies to assist those who were to choose the option of moving out to help them set up overseas.

3. Sector based manpower deployments

Manpower is still very tight in Singapore and everyone knows that its tough even for the government to get it right. We should really look more closely into not just sectors but also into specific industries where Singaporeans are really not seeking jobs in and help to supplement with foreign labour, if not we are really stuck in the cycle of not being to deliver much because of the manpower limitation.

 

Looking forward to a good budget!

 

What are some of the advantage of hiring payroll services

What are some of the advantage of hiring payroll services – Hiring payroll services has become quite a common move by businesses in Singapore for the past 5 to 10 years. Gone are the days when you run most of the administration services in your own office. Many business owners have found that it might be more advantageous to outsource portions of the business to cut cost and also to improve the productivity on the dollar they pay for the services to be done up.

Advantages of hiring payroll services cannot be seen up front but there are a few of them that we will like to discuss with you:

Advantage 1: Saves cost by hiring payroll services

Do you have to get an administrative staff right now just to get your payroll work done and that will cost you easily a few thousand dollars for a fresh graduate. The funds can be better spent in marketing and other means of growing the business if you outsource it for probably a fraction of the cost.

The best thing about outsourcing your payroll services is that you reduce monthly overheads and this is one thing that makes or breaks business in their infancy.

Outsourcing the services out helps you to grow and grow better!

Advantage 2: Changes from the government are updated by hiring payroll services providers

Is your payroll staff aware of all the changes that the government announces every year? Some things can be big mistakes if you do not react to them and this is one thing that can go very wrong if you are on the wrong side of the law.

Payroll Services providers will ensure that they are on the ball in knowing what are the changes and therefore work to ensure that you have the most updated information for your submissions.

They are the professionals who stay abreast on the information and thus ensures that all your work is delivered to the highest quality possible.

Advantage 3: Hiring payroll services providers improves your time efficiency

As an entrepreneur, will you rather want to make more income or bother more about administrative work?

If i were you i will choose income and making more of it. Doing sales and branding the company to go a long way should be the main focus of the entrepreneur.

It makes your time more worth while and that means more time with planning and strategy.

 


K Cloud Accounting is one of the leading payroll services providers, if you are keen to find out more, contact us!

 

What are some of the advantage of hiring payroll services

K Cloud Accounting Launches $388 incorporation package

Happy New Year to customer old and new. 2018 was a challenging yet fulfilling year, with the start of K Cloud Accounting, a Subsidiary under Koh Management Pte Ltd, we have managed to gain a foothold in the startup accounting space.

In the year of 2019, K Cloud Accounting will like to take this opportunity to share with our customers that we will be launching a $388 incorporation package that is inclusive of $315 paid to ACRA for registration.

How do you enjoy such a package? You are to join us as a full suite accounting + corporate secretarial + tax package that starts from a very affordable $160 per month.

We are able to do your monthly bookkeeping, give advise on your corporate governance and at the same time worry about your tax submissions for you!

Why you should go ahead with monthly bookkeeping services you may ask?

1. You do not need to worry about losing your documents

The worst thing that can happen is when you lose your supporting documents at the end of the year and is unable to find them. You don’t have documents to attach and that is bad because you might end up not being able to claim expenses on items that might cost quite a bomb. Getting your suppliers to print them out for you again might prove troublesome and this is a bad situation for any business.

Getting them sorted out every month means that you will not need to worry that much and get things done without fearing of losing them

2. You get updated of your business progress every month

You need to know if you are making good progress every month, how best then to get your accounting done monthly. This also means that you will be able to give your investors progress reports that will keep them interested and happy with you every month. The seasoned entrepreneurs might also be able to give advise if they are familiar with accounting documents and help you save a cent or two.

Contact us to find out more about what you can get out of this package now! Incorporation services done fast and affordable! Outsource bookkeeping services today!

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