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The answers to your doubts

Frequently
Asked Questions

We want you to be comfortable with us as your advisor. We not only do the work for you, we educate you too. We always strive to clear your doubts and make sure you understand what you are going through and what you are paying for because we believe transparency is the new objectivity! We are happy to assist you anytime if you can’t find your answers here. We are just a call away.
What I need to know about Biz Square?
Who is Biz Square?

Ok. Let us sum up in a short paragraph. Biz Square is founded in 2014, a boutique corporate and business consultancy firm to help businesses grow sustainably. Our firm is a registered filing agent with ACRA and our professionals are certified by ISCA and ACCA. We use technology extensively to drive efficiency and we are also committed to being carbon neutral to create a sustainable future. We constantly keep an eye on market trends, recent regulatory requirements and work on the most up-to-date software to provide your business with an all-rounded solution.

What makes Biz Square different from your competitor?
  1. All our clients are assigned to a dedicated advisor. You will only need to liaise with your dedicated advisor instead of the different persons from various departments for different services.
  2. Our dedicated advisor provides a holistic approach to every transaction. E.g. He or she will consider your transaction for the best outcome with consideration on corporate governance implementation or income tax consequences.
  3. We accelerate your growth by using technology in your operations to increase efficiency. Be assured we only recommend cloud solutions that can scale with you and nothing more than what you need! You will gain greater insights into your financial performance and then be able to plan ahead to make an informed decision at the right time at the right place.
  4. We love sweet surprises but hate unpleasant ones and so are you. We ensure open communication and transparency with absolutely no hidden cost.
  5. We want to give back to the society and environment. We believe what we do can help you build successful businesses which in turn create jobs for the community. We also don’t give up on advocating our objective on going paperless. The little things add up, bringing us a step closer to protecting our home.
What software are you using to help my business?

Different clients have different needs. Generally, we deploy the solutions listed on our partner page because we are confident of their capabilities and client support services. After a chit chat session with you, we will be able to recommend the solutions that fit your business needs. Be assured we only recommend cloud solutions that can scale with you and nothing more than what you need! We are flexible and do work on other software as well, upon our clients’ request.

What I need to know about company incorporation?
What do I need to set up a company?
  1. Business name – Avoid similar names, pronunciation or meaning to an existing business
  2. Business structure – Choose 1 of the 4 main types of business structures
  3. Business details – A brief description of your business activities
  4. Local address – An address in Singapore, PO box is not acceptable. Proof of address not more than 3 months is required, e.g. phone bill, utility bill. Etc.
  5. At least 1 resident director – A Singapore citizen or permanent resident. Identity Card (for local) and passport copy (for foreigner).
  6. At least 1 shareholder – Can be individual or corporate 
  7. A Company Secretary – A company secretary must be appointed within 6 months after incorporation (if someone is a sole director, he/she cannot be the company secretary)
  8. At least $1 capital – Your share structure, ie. number of shares and paid-up capital amount
Is it mandatory to have a company registered address?

Yes, it is mandatory to have a Singapore address for your Singapore registered company. If you do not have one, you can sign up for our registered address service.

What I need to know about corporate secretarial?
What is a Company Secretary?

In smaller companies, the Secretary is usually only required to perform administrative functions such as keeping records and registers, and filing of returns. In larger firms, he would usually have to shoulder broader responsibilities such as making sure the company stays in compliance with the requirements of the law. Although the ultimate responsibility for complying with legal obligations lies with the directors, the Secretary may also be held liable for the company’s failure to comply with the law in certain situations. This is because the Company Act recognises that the directors depend on the Secretary for guidance on compliance issues. It also includes secretaries in its definition of ‘officer’, which means they are bound by all the relevant duties and obligations. As such, the Secretary cannot ignore any instance of non-compliance and should bring it to the attention of the directors.

Can I not appoint a Company Secretary?

No, you can’t. According to the Companies Act, a company must appoint a secretary within 6 months from its incorporation date. A company secretary must be a natural person and a local resident in Singapore. The position of company secretary must not be left vacant for more than 6 months. The sole director of a company and the company secretary cannot be the same person.

What is Corporate Secretarial Services?

The Corporate Secretarial Services provided by Biz Square includes ensuring the company is compliant with the regulatory requirements, tracking changes in your company and notify ACRA via filing a notice, maintaining the company registers, preparing standard papers for annual general meetings and filing annual returns. Basically, we support all kinds of changes in your company with resolutions and update the registers, as well as offering advice when there is an internal disagreement between shareholders and directors.

What is Annual General Meeting (AGM) and Annual Return (AR)?
  1. AGM stands for Annual General Meeting. AGM is a yearly meeting for the company’s shareholders. At an AGM, the directors of the company present an annual report containing information for shareholders about the company’s performance and strategy. If your company is newly incorporated, it will need to hold its first AGM within 18 months from the date of incorporation. For an existing company, It is due 6 months after your financial year end.
  2. AR stands for Annual Return. Under the Companies Act, all Singapore-incorporated companies are required to file annual returns with ACRA to ensure that the company’s information on ACRA’s register is up to date. The company must also submit the date of its AGM if it has held its AGM, as well as the company’s financial statements (if applicable). Company officers may face enforcement action for failing to file their company’s annual return.
  3. It is important for you to hold the AGM and file the AR on time. Any delay or failure to do so will result in a penalty being imposed on the company, or legal action taken against you as a director.
What is CorpPass?

Corppass is a corporate digital identity for businesses and other entities (such as non-profit organisations and associations) to login for transacting with Government agencies online.

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What I need to know about accounting?
What is a Financial Year End (FYE)?

It is a completion of any 12-month accounting period which may differ from the calendar year, and may not close on 31 December due to the nature of a business’s needs. The usual dates chosen are 31 March, 30 June, 30 September or 31 December.

What is a balance sheet?

A balance sheet is a financial statement that provides a snapshot of all of your company’s assets (what the business owns) and liabilities (what the business owes) and shareholders’ equity (how much money you would have left over if you sell all your assets and paid off all your liabilities) at a specific point in time. This information is more valuable when the balance sheets for several consecutive periods are compared together, so that trends in the different line items can be viewed objectively.

What is an income statement?

An income statement is also known as the profit and loss statement. It primarily focuses on the company’s revenues and expenses during a particular period. An income statement provides valuable insights into a company’s operations, the efficiency of its management, under-performing sectors and its performance relative to industry peers.

Do we need to get our financial statements audited?

Companies who meet the following conditions are exempted from getting financial statements audited:

  • It is a private company; and 

Meeting at least 2 of 3 following criteria for the immediate past 2 financial years

  • Less than $10 million of total annual revenue 
  • Less than $10 million of total assets 
  • Less than 50 employees

If the company is part of a group, the company must qualify as a small company and the entire group must be a “small group”. A small group must meet at least 2 of 3 quantitative criteria on the consolidated basis for the immediate past 2 financial years.

Let us help you evaluate whether you meet the above criteria.

What is XBRL?

XBRL stands for eXtensible Business Reporting Language. It is a language for the electronic communication of business and financial data worldwide. We can help you prepare your financial statements and then use a tool (such as BizFinx, provided by ACRA) to convert your data into XBRL format that is suitable to file with ACRA together with your annual return filing.

What I need to know about tax?
What is Year of Assessment (YA)?

A company is taxed on the income earned in the preceding financial year, ie. income earned in the financial year 2020 will be taxed in 2021. In this case, 2021 is the year in which your income is assessed to tax and hence 2021 is called the Year of Assessment (YA).

What is Estimated Chargeable Income (ECI)?

It is an estimate of the business’s taxable income after deducting tax-allowable expenses. All businesses must file within three months from the end of their financial year except for companies that qualify for the administrative concession and those that are specifically not required to file.

What is the criteria for ECI filing waiver?

Your company does not need to file the ECI for that particular Year of Assessment if it meets both criteria:

  • Annual revenue is not more than $5 million for the financial year; and
  • ECI is NIL for the YA
What is Form C-S/ C?

This is the Corporate Income Tax Return that needs to be filed annually by 30 November or 15 December (if via e-filing). 

What is Goods and Services Tax (GST)?

This is a value-added tax levied on most goods and services sold in Singapore. As a business, you must register for GST when your taxable turnover exceeds $1 million. If your business taxable turnover does not exceed $1 million, you may still choose to voluntarily register for GST after careful consideration. Generally, GST is filed quarterly.

Which grants and payouts commonly received by Companies are taxable in Singapore?

Business owners can use the following guiding principle to determine whether a grant or payout is taxable:

– Grant/payout is taxable if it’s given to supplement trading receipts or to defray operating expenses of the Company. The grant/payout is revenue in nature.

– Grant/payout is non-taxable if it’s given for the purpose of acquiring capital assets of the company. The grant/payout is capital in nature.

Reference: IRAS and Income Tax Treatment of COVID-19-Related Payouts to Businesses and Individuals

What I need to know about payroll?
What is Central Provident Fund (CPF)?

It is a mandatory social security savings scheme funded by contributions from employers and employees. If you employ a Singaporean or Singaporean Permanent Resident with a monthly wage above $50, you need to pay the compulsory CPF contribution by the 14th of the following month. Rates vary depending on the employee’s income and age.

What is Foreign Worker Levy (FWL)?

It is a pricing mechanism to regulate the number of foreign workers in Singapore. As an employer, you do not have to pay CPF contributions for your foreign workers. However, you must pay a monthly levy for Work Permit and S Pass holders via General Interbank Recurring Order (GIRO).

What is Skills Development Levy (SDL)?

It is a compulsory levy that you have to pay for all your employees working in Singapore, on top of CPF and FWL. It is used to support workforce upgrading programmes and to provide training grants to you when you send your employees for training under the National Continuing Education Training system. Employers are required to contribute up to first $4,500 of each employee’s total monthly wages at a levy rate of 0.25% or a minimum of $2 (for total wages of $800 or less), whichever is higher.  You can pay SDL with your employees’ monthly CPF contribution.

What is Form IR8A?

Form IR8A is an annual mandatory submission to the Inland Revenue Authority of Singapore (IRAS) to report your employees’ earnings for the previous year. All employers are required to submit Form IR8A to IRAS by 1 March every year. You may need to prepare Appendix 8A, Appendix 8B, and Form IR8S depending on various working conditions of your employees. We can help you to register for Auto-Inclusive Scheme allows you to submit the data to IRAS electronically at a click of a button via a Human Resource Management System! The submitted information will be shown on the employees’ electronic tax return and will be automatically included in their income tax assessments.

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We’d love to hear from you

Get In Touch

If you like to hear a voice at the other end, feel free to call us. But you might need help anytime, day-or-night, you can write to us. Or when you feel you need a face to face chat, our door is always open for a good cup of coffee.
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10 Raeburn Park #02-08 Singapore 088702
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    Sign up to receive tips on running your business, the latest news on regulations and all the new offers.

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