Accounts
Why is proper accounting important?
By providing up-to-date reports, companies are able to properly access their health financially and operationally. It is also mandatory to ensure that your financial reporting and accounts are done properly to ensure that the organisation does not have any brushes with the law for breaches of compliance or failure to properly report their taxes. Potential investors would also prefer to have a more accurate gauge of the management of the company and its financial health before reaching an investment decision.
AccTrust provides bookkeeping services. May I know some of the benefits of external bookkeeping?
Most organisations choose to outsource their accounts functions because it serves as a cost-efficient measure. Unless your company or business has sensitive information that cannot be released to outsiders, outsourcing this function means hiring one person less which could result in a significant difference in costs. While some business owners may choose to perform this function themselves as they have the skills and knowledge to do so. While this may be seem as a cost-effective solution, precious man-hours are wasted focusing on such a company function when a company can choose to focus on its business operations instead.
You offer XBRL conversion services. What is it and do I need it?
XBRL stands for eXtensible Business Reporting Language that is a universally recognised standard for the exchange of business information through business systems. ACRA’s guidelines require companies that generate revenue of over $10 million a year to file, but smaller companies with revenue amounts below this can choose to do so as well.
What is the compilation of financial statements about?
By compiling financial statements, accountants check the data being input into a predetermined format for the company accounts and ensure to the best of their ability that it is error-free. They will then certify that the data has been certified to the best of their ability, though it is not a guarantee of reliability of data. These statements that have been vetted and reviewed provide a useful assessment of the company’s financial health and also allow the company to determine its future direction.
Incorporation
If I am a foreigner planning to invest in Singapore, can I be the sole Director and Shareholder of my business?
You can be sole Director and Shareholder of the company provided you have a valid Employment Pass under the same company. The local Director requirement under ACRA requires for a Director to be working and staying within Singapore, so the interim period where your Employment Pass is being applied for will require you to have a local Nominee Director (Singaporean or Permanent Resident) to act on your behalf. On the other hand, should you hold a valid Employment pass under another company, you will be required to cancel that pass before applying for one under your new company. You are only allowed to have one Work Pass at any single time.
Must I have a local corporate account to complement my company?
Yes you do. It would be difficult to conduct business without one. Once we have successfully incorporated your firm, we can assist you in facilitating the opening of a bank account with our local bankers.
How much Share Capital should I invest in a business?
It is entirely at your discretion how much you would like to invest into the business, so long as the amount starts from a minimum of $1. However, do note that there are organisations that are sensitive about this, and would prefer to conduct business with a company that is worth more than that. A higher share capital would indicate that the company will be liable for the stipulated amount and thus invoke greater confidence for business partners.
If I am a foreigner or foreign entity, am I allowed to own a Singapore business?
Yes, you are allowed to. So long as you have a local Director to represent your organisation, a Singapore incorporated entity is legally allowed to fully own a Singapore business.
How long will it take for me to incorporate a company?
Once we have performed the necessary background checks, and once we have received all the relevant documents, we will be able to set everything up by the following day. If you have need for the services of a corporate banker to open your bank account, AccTrust Advisory will also be able to facilitate this process as part of our service.
Secretarial services
Is it compulsory to nominate a Corporate Secretary? Can I nominate anyone to fulfil that function?
Yes, it is compulsory to nominate a Corporate Secretary.
Section 171 (1A) of the Companies Act states:
It shall be the duty of the directors of a company to take all reasonable steps to secure that each secretary of the company is a person who appears to them to have the requisite knowledge and experience to discharge the functions of secretary of the company.
Failure to nominate a Corporate Secretary within 6 months of your Company’s incorporation will result in penalties to your business. As mentioned in Section 171, you are also required to nominated a Secretary that has all the requisite knowledge and experience to discharge the functions. It is not advisable to nominate anyone who does not have the knowledge to do so.[/vc_column_text][/vc_column][/vc_row]