a1 business – Page 5 – A.1 Business Pte Ltd

Will tech startups play a greater role in Singapore’s future economy?

The Finance Minister of Singapore, Mr. Heng Swee Keat, has been very upfront, very honest, and very open about his belief that the startups in Singapore are going to play a major role in the future of the Singapore economy.

His governmental agency has long been looking into the kind of impact that startups will inevitably have on the local economy as well as the impact that these startups can have on a global scale, and the conclusion that they have come to is that they need to do everything in their power to foster innovation, to support these new startups, and to make sure that they all of the resources they need to grow and contribute to the success of Singapore going forward.

Startups all over the world have the potential to transform their local economy

All of this should come as no surprise to anyone that has been paying attention to how startups impact economies all over the world.

One only has to look at the United States – probably the world’s largest and most fertile hot bed for runaway successful startups – to see the kind of impact that these incredible businesses have the opportunity to produce.

Game changing companies like Microsoft and Apple were startups by the traditional definition 40 years ago, but today companies like Google, Facebook, Twitter, Tesla, eBay, Amazon, and a handful of others are showing that startups can grow very, very rapidly and end up contributing a significant amount to the national economy.

Silicon Valley is the ancestral home of many of the world’s greatest startups, but Southeast Asia is starting to get into the swing of things by fostering their own internationally game changing startups as well.

Singapore is dedicated to getting in on this action as much as possible, with the government really starting to provide tremendous funding, educational opportunities, and other necessary resources to make sure that their “homegrown” startups stay local.

Singapore is serious about fostering innovation at home

The Finance Minister we mentioned above has already recommended to the Prime Minister that the government begin initiating major funding rollouts and resources to the startup community in Singapore just as soon as humanly possible.

The government wants to be sure that they are able to:

• Expedite the growth of startup businesses to create new industries, new markets, and new jobs
• Provide the kind of foundational education and future opportunities to help raise future generations of entrepreneurs, innovators, and startup leaders
• Encourage those that create startups to stay in Singapore rather than take their talent and their businesses to other nations

… And that’s only the tip of the iceberg.

The Singapore government is already connecting with startup leaders, entrepreneurs, marketers, and creative thinkers across all walks of life to try and come up with new ways to create the kind of atmosphere and environment that startups need to not only survive but to thrive.

With major economic impacts possible, it’s in the best interest of Singapore to make sure that they keep their homegrown talent in country and give them every opportunity to become as successful – if not more so – here in Singapore than they would have been able to anywhere else!

Income And Expenses

Accounting by a1 business

income and expenses

Income and expenses are the accounts that are contained in the Profit and Loss Statement or Statement of Earnings. They are also referred to as nominal or temporary accounts. This is because they are reported for in a specific accounting period, its balances closed at the end of the accounting year or year of operations. End-of- year balances of income and expenses are closed to the owner’s capital accounts.

Revenue

In Accounting, revenue is income earned for rendering services in case of a service company. For a company engaged in selling merchandise or goods, revenue is income derived from sales of goods to customers.

It is very important to note that in accounting, Sales or Service Income comes from the normal business activities of the business. Sales or Service Income does not come from other revenue generating activities which is not part of the normal operations of the business. For example, a company engaged in buying and selling of merchandise like groceries sold an old building it have previously owned. The sale of the old building will not form part of the Sales of the business but will be reported as other revenue if it realize a gain for selling the asset.

If a company is using accrual basis of accounting, sales are recognized and recorded when the goods are delivered to the customer even without receiving payment. In case of service income, the revenues are recognized and recorded when the services are rendered to the customer.

Revenues can come in different forms and accounts as follows:

Sales – this means the revenue generated from selling merchandise in the case of merchandise business.
Service Income – this means the revenue generated from rendering services in the case of services business.
Interest Income – the interest earned from bank deposits.

Income or revenues have normal credit balance so that when the revenue is earned and recognized, it is recorded as a credit to Sales in case of sales of merchandise to customer and debit cash if the customer pays in cash. If the customer payment is on terms, accounts receivable is debited instead of cash.

Expenses

Expenses are costs that are incurred as a result of the business efforts to generate revenue and pay for its business operations. The cost of purchasing the merchandise for sale is called as cost of sales or cost of goods sold. For service business, the cost to render the service to customer is referred to as service costs.

Other expenses that are incurred by the business related to selling and running the business include the following:

Salaries and Wages – this can be further classified into sales department salaries, office staff salaries
Rental – this can be further classified into office, store or warehouse rental.
Electricity and water
Supplies – this could be in form of store supplies or office supplies.
Insurance expense – can be in form of employees’ insurance, store building insurance
Interest expense – in the form of
Depreciation expense – this expense is not actually paid out in cash but in the form of depreciating the value of the asset in the form of depreciation.

Expenses are recorded as a debit to the corresponding account and credit to cash if paid in cash. If the expense is not yet paid in cash, the credit would be to a liability account.

What are the differences between Directors and Shareholders?

Business in Singapore by a1 business

In Singapore, just like in most jurisdictions, there are glaring differences between Directors and Shareholders. One of the major differences between directors and shareholders in Singapore is that whereas a shareholder owns part of the company, he or she is not actively involved in the day to day running of the company.

A director, on the other hand takes a more active role in the day to day management of the company provided such powers are within the provisions of the Memorandum and Articles of Association of the company and the Singapore Companies Act. Further details on the differences between directors and shareholders are as follows:

Directors:

For one to register a Private Limited Company in Singapore, one of the key requirements is that at least one of the directors of the company must be a Singapore Permanent Resident, a Singapore citizen or an Entrepreneur pass holder.

In general, the duties of a director do fall under two relatively broad categories. The first category involves statutory duties of care, skill and diligence. The second category involves general law duties or fiduciary duties of good faith and loyalty.

Statutory duties are generally defined as administrative duties and are enforceable through the Accounting and Corporate Regulatory Authority (ACRA) of Singapore. Some of the duties include performing general duties of disclosure. It also includes the maintenance and regular updating of the company’s accounting records and preparing the financial statements for the company to be used during the Annual General Meeting (AGM). The director must also ensure that the first AGM is held anytime within the initial 18 months after incorporation. After this initial AGM, another one must be held every calendar year at intervals not exceeding 15 months.

The director must also ensure that there are regular shareholders and director meetings to review the companies trading and financial position. He or she must also appoint a qualified auditor within the first 3 months after the company’s incorporations. It is also the responsibility of the director to keep and maintain members register and keep other statutory books at the registered offices of the organization.

Fiduciary or general law duties on the other hand are enforced by the registered company and generally imply that all the directors must always act in utmost good faith and in the interests of their employees, customers, creditors, suppliers and the community in general before making a decision. They are also expected to use this privilege to act on behalf of the company wisely; they should also not place themselves in a position of conflict by engaging in activities that conflict the interests of the company.

Guided by the Companies Act Sec 339(3), a director should not incur debts where there is reasonable ground to believe that the company will not be able to offset the said debt. This only comes to play when there are legal proceedings against the company or it is being wound up. Under Sec 157 (2) of the same act, directors are prohibited from using any information they get by virtue of their position as directors to meet their individual gains and enrich themselves or to the detriment of the company.

Shareholders:

In the case of shareholders, their duties are rather straightforward. They tend to be more concerned with ensuring that appointed directors are performing their duties as required and within the law.

In Singapore, all registered companies are required to at least have one shareholder. They are defined as individuals who have invested some money in the company and expect some reasonable return on their investment. As per Singapore laws shareholders have the power to modify, repeal or adopt provisions listed in the Company’s Memorandum or Articles of Association.

They also have the power to approve appointed editors and remove directors from office in case of public companies if and when required. Shareholders also have the power to veto certain capital reductions.

In instances where the board is unable to act, shareholders usually have reserve powers to act on the matter in question. They can also refuse to or ratify directors’ actions. Shareholders can also commence and subsequently prosecute legal proceedings where the suspects control the company.

Why is Singapore one of the Best Global Cities to do Business?

Business in Singapore by a1 business

Why is Singapore one of the best global cities to do business?

Firstly, Singapore has a promising jurisdiction for registering a company and addressing business management. In the world rankings of doing business, Singapore has a leading role for many years.

Secondly, there is virtually no corruption in Singapore, there is no external state debt, and the trade balance is positive on a constant basis. Singapore is one of the international financial centres with developed economy based on trade and sector service.

Thirdly, Singapore is in the white list of countries that are favourable for companies to do business. And first of all it is due to high reputation of the jurisdiction, as well as taking into account the highly favourable tax regime and a developed system of protecting the interests of businesses and investors. Such conditions allow to easily register a company in Singapore and to do business in favourable atmosphere.

According to a study conducted by CNN Time Warner Group, Singapore is ranked 5th in the world in terms of friendliness to small businesses. Ahead of it are only New Zealand, the USA, Canada and Australia. The study took into account such factors as the time to form a Singapore company, laws, tax policies and the different types of business activity etc.

Having own business in Singapore is a dream of every entrepreneur. Registering a company or business in Singapore takes about 1 to 2 days, and the further conduct of business is not complicated by unnecessary bureaucratic delays. With so many benefits, it is no wonder that Singapore is among the best global cities to do business.

Setting up a Company

If you already have the idea of a business, it’s time to move to action. The minimum share capital is a nominal $1, the minimum number of shareholders is one, and the license for most businesses is not required. Foreigners can own 100% of the shares. In fact, the only legal requirement is that the director of the company must be a resident of Singapore.

But there is an option when a foreign businessman receives a work visa either Entrepreneur pass or Employment pass. In this case you can do your business even without the Singaporean director. Application for a work visa is processed by the Singapore Ministry of Manpower and if you have a higher education such as Bachelor’s Degree with business experience, no problems should arise in the work visa application.

In order to start your own business, the easiest way to do that is to apply to one of many consulting or law firms in Singapore. There you will be not only explained in detail all the conditions for the establishment and running your own business in the country, but the company secretary will help you to arrange the Singapore company registration in just a few days.

How to Set Up a Tuition Agency in Singapore?

Singapore Company Formation by a1 business

Prior to setting up a tuition agency in Singapore, business owners need to register a company in Singapore and set their business activities as “commercial schools” or “tuition centres” before the company can proceed online to apply for private school licenses.

In the Private Education Act, private education is defined as “Full-time education helping students for any examination that results in a qualification awarded by another person or organisation other than the Private Education Institution (PEI), or admission to an education institution”. Tuition agencies operate in accordance to this law.

Thus, with the effect from 21 December 2009 under the new Private Education Act, organisations – including sole-proprietors; partnerships; companies and registered societies, are legally required to enlist as a private school with the Council for Private Education (CPE), a statutory board under the Ministry of Education (MOE) of Singapore. However, organizations keen to register with the CPE have to comply with the various laws and regulations.

Enhanced Registration Framework in Singapore

Companies who are interested to start a tuition agency have to go through a process called the Enhanced Registration Framework (ERF), which is implemented by the Private Education Act and the Private Education Regulations. Through ERF, the Council for Private Education ensures that all PEIs functioning in Singapore meet the mandatory registration requirements and legislative obligations.

Documentation compulsory for Registration

Document 1: Status as a registered company

A tuition agency must be formed as a company registering with the Accounting & Corporate Regulatory Authority (ACRA). Also, in order to be registered, it must conform to certain necessities with respect to corporate governance. In order to prove this, entrepreneurs who start up the tuition agency can present his BizFile to CPE.

Regarding naming of the tuition agency, the name of it and the department must denote a place of learning. The name of the agency should be comprised of words like “school” or “academy”.

Also, to avoid any misinterpretation of the tuition agency to be same or associated with other existing agencies, the CPE will not agree to agencies using a name similar to each other. It should also not contain words such as “Singapore” and “National”, as it is highly possible to lead potential customers to think that the agency is related with the Singapore Government.

Document 2: Details of managers

The managers of the tuition agency are the directors of the company. A Manager’s Declaration Form accompanied with the personal particulars should submitted to allow the CPE to conduct checks if the manager is fit and proper to perform his/her roles.

Document 3: Floor plan of premises & Approvals on the suitability of premises

Firstly, at least one fully enclosed classroom and a dedicated area for office or administrative activities is required for the tuition agency to be approved by CPE.

Secondly, the premises of the tuition agency must be judged as appropriate for providing legitimate and hazard-free private education by government-controlled land planning and fire safety authorities. Its properties and equipment must obtain Urban Redevelopment Authority (URA) or the Housing Development Board’s (HDB) approval to be used as a commercial school; and the fire safety clearance from the Fire safety and Shelter Department (FFSD) of Singapore Civil Defence Force (SCDF).

Document 4: Details of the members of tuition agencies’ Academic Boards

Every tuition agency has to set up an Academic Board. The agency must follow the academic policies and procedures developed by the Academic Board. The Academic Board is generally liable for the academic quality of the agency.

The Academic Board of the tuition agency must contain of at least 3 members. These members must not be bankrupts; sentenced in any court of law in Singapore for an offence under the Act; guilty of any offence involving fraudulence or corruption; or be managers of any unregistered or registration-rejected PEI.

Document 5: Details of the Courses and Teacher to be employed

Photocopy of every teacher’s NRIC or passport
Certification of each teacher’s relevant academic qualifications and work experience
Class timetable
Attendance sheets
Teacher deployment chart
Receipts issued to students
Sample of Textbook or Assessment Books issued to students

Registration Methods

Method 1: Online Business Licensing Service

Registration for PEI can be presented electronically via the Online Business Licensing Service (OBLS) available at https://licences.business.gov.sg. Users have to Log-in to the OBLS system through Singpass or CPF PAL PIN.

Method 2: Smart Forms and Paper Forms

Smart Forms are available for download at the CPE’s website. It is submitted as ‘attachments’ using OBLS when completed. PEIs will be asked to fill in hardcopy forms in situations where signatures of the managers are mandatory.

For more information, please refer to https://www.cpe.gov.sg/for-peis/enhanced-registration-framework-erf/enhanced-registration-framework-erf

How to Set Up a Trading Company in Singapore?

Singapore Company Formation by a1 business

Singapore is an effective and efficient ‘port of call’ for many traders around the world, especially those dealing in the western and eastern time zones. According to World Trade Organization’s latest statistics, Singapore is the 14th largest exporter in the world. If you plan to register a company in Singapore for the import/export business, an overview of the various aspects of trading is provided below.

With 3000 logistics and supply chain management companies available in Singapore, trade has become an integral part of the country’s booming economy. Singapore also provides shippers with a choice of 200 shipping lines that has connections to over 600 ports in more than 120 countries. With market dominance over this industry of import/export trade, Singapore has well-defined procedures in place. Please read on to find out more about setting up a trading company in Singapore.

How to start a trading company in Singapore?

Step 1: Incorporate a trading company

In order to start a trading business in Singapore, a Singapore company is required to be incorporated. The procedure of company incorporation is fully computerized through the Bizfile website. Therefore, the time needed to process each incorporation is short, about 1-2 days under normal circumstances.

Step 2: Register with Singapore Customs

Both exporters and importers have to activate their account with Singapore Customs before being granted permission to import/export goods into and out of Singapore. 1-2 working days will be needed after submission of the application before activation of account is processed. If successful, a Customs approval letter will be issued and it will be valid for as long as the company exists.

Step 3: Apply for licences and permits

For import /export of all goods

Including all non-controlled and controlled items, import of all goods into Singapore require an IN Permit through TradeNet®. On the other hand, export of all goods out of Singapore require you to obtain an OUT Permit through TradeNet®.

IN Permit and OUT Permit has to be obtained:

before exporting goods if they are transported via rail or road, or are controlled goods.
within 3 days of export if your goods are transported by sea or air, or non-controlled goods.
before exporting goods that are imported under the Temporary Import Scheme previously.
before exporting goods under the Temporary Export Scheme.

However, certain special scenarios may be imported/exported without a permit. One such example includes importing/exporting of uncontrolled items that does not exceed S$400/- in total value on the CIF (Costs, Insurance and Freight) value.

For import/export of controlled goods

Controlled goods are the import/export of some goods that are subject to the control of Controlling Agencies. To import/export controlled goods, a permit is required, in addition to the IN and OUT Permit. Permit applications can be submitted to relevant Controlling Agencies through TradeNet® system or via your freight forwarder, cargo agent for processing and approval. Some examples of controlled goods include tobacco products, petrochemicals, drugs, animals and food products.

For import of high-technology items

Some high-technology items are subject to export control and the importer from Singapore may have to provide an Import Certificate and Delivery Verification (ICDV). ICDV can be applied by importers at Singapore Customs. Items covered in an ICDV must not be diverted to other countries, only imported directly into Singapore.

For export, transshipment, or transit of Strategic Goods

A Strategic Goods Control (SGC) TradeNet Permit must be obtained if one intends to tranship, export or bring in Strategic Goods. They are regulated by the Strategic Goods (Control) Act which covers all goods and technology that are likely to be used or intended for weapons of mass destruction.

For export of local goods

Singapore exporters may be asked for a Certificate of Origin (CO) by buyers which is able to prove that goods are made in Singapore. Two types of Certificates of Origin exists:

Ordinary Certificates of Origin – to satisfy buyers that products exported are wholly obtained, produced or manufactured locally in Singapore.
Preferential Certificates of Origin – a document that help to improve the competitive edge of exports as it enables buyers to claim preferential tariff treatment when importing.

A Certificate of Origin can be applied through TradeNet® or via a freight forwarder or cargo agent.

How to Set Up a Restaurant Business in Singapore?

Business in Singapore by a1 business

With Singaporeans’ huge appetite for eating out and their willingness to spend big bucks on food, it has given rise to a variety of food and beverage (F&B) businesses in Singapore. Once you have decided that Singapore is the ideal place to setup your restaurant, the following steps will provide you the necessary information to kick start your restaurant business. The first step in opening a restaurant business is to register a company in Singapore. For foreign owners, it is not compulsory for them to relocate to Singapore to set up their business. However, under the Singapore Immigration Regulations, if a foreigner wishes to move to Singapore to run his restaurant, he must apply for an Entrepass.

Step 1: Incorporate a Company / Business in Singapore

First of all, you need to register a business or company in Singapore. A Singaporean or Permanent Resident can register the business or company alone as a single director company. SSIC code of the company should reflect the actual types of food business such as cafes, snack bars, fast food restaurants and restaurants etc.

Step 2: Food Shop License

According to Singapore’s Environmental Public Health Act, a Food Shop Licence issued by the National Environment Agency (NEA), is necessary if a person is intended to run a retail food outlet where food and/or drink are sold wholly by retail in Singapore.

Hence, after you have finished your company registration and any relocation visa matters, you will have to decide on your restaurant’s location since the authorities will examine the location before granting an approval for the license.

In addition, when applying for the Food Shop License, you must have the following supporting documents listed below:

A photocopy of one of the following (where applicable):
- Both sides of NRIC of applicant (if applying as an individual) or
- Business profile of the company (if applying as a company) or
- Certificate of registration from Registrar of Societies (if applying as a society)
A scaled metric layout plan of the restaurant such as the kitchen, preparation area, refreshment area, toilets, stores and etc.
Tenancy agreement among the landlord and the applicant.
Approval(s) from Housing Development Board (HDB) [for HDB premises only], Urban Redevelopment Authority (URA) & / or Building and Construction Authority (BCA) [where applicable]
The list of food handlers employed.
Typhoid inoculation certificates for food handlers.
X-ray certificates for food handlers that are 45 years old and above.
The list of Food Hygiene Officers hired using the prescribed form obtainable from the relevant Regional Office.

Step 3: Hiring of Employees

Owners have to be aware that employees in the restaurant business in Singapore tend to consist of both local and foreign workers. Thus, if you are planning to hire foreign employees, you have to ensure that they have a work permit.

Step 4: Halal Establishment Scheme

If you are also planning to have Muslims as customers, it is vital to have a Halal certificate by the Islamic Religious Council of Singapore (MUIS) – the authority for Halal certification in Singapore. With this certificate, Muslims can enjoy their meal without having to worry if they violated their laws and beliefs.

Step 5: Liquor Licence

If you desire to serve liquor in your restaurant, you would require a Liquor License from the Liquor Licensing Board (LLB).

There are 4 main types of Liquor licence:

Public house licence
Beer house licence
Wholesale liquor/Retail liquor shop licence
Wholesale beer/Retail beer licence

Depending on the type of license, the fee range from S$220 to S$1760 for a period of two years. The processing time for approval of application will take at least 14 working days.

Step 6: Goods and Services Tax (GST) Registration

Any business that has annual revenue of S$1million or more must register for GST, also known as value added tax (VAT). Currently, Singapore’s GST is 7%. However, if your annual restaurant revenue is less than S$1 million, registering for GST is optional.

Step 7: CPF Registration

You need to make Central Provident Fund (CPF) contributions for any employee you hire, as long as he or she receives more than S$50 a month. However, CPF contribution for foreign employees with Employment Pass or Work Permit is not required.

Step 8: Registration to import processed Food products and Appliances

If you intend to import processed food products and food appliances, you have to apply for a Registration Number from the Food Control Division (FCD) of Agri-Food & Veterinary Authority of Singapore (AVA).

After going through the 8 steps above, you are now better equipped with the knowledge to set up your restaurant business in Singapore.

How to Set Up a Travel Agency in Singapore?

Business in Singapore by a1 business

Prior to starting a Travel Agency in Singapore, one must register a company. A Travel Agency is a person or a company that provides services relating to travelling and tour. A Travel Agent is a body which provides travel and tour packages involving different modes of transport.

Under Section 4 of the Travel Agent’s Act (Cap 334), a travel agent is defined by the services it offers. Some services include:

The purchasing of the requirement needed to get on any transportation for resale, conducting tours within Singapore
The sale of tickets allowing one to travel or organise a right of passage on any form of transportation for an individual. However, the licence is not required if the transportation is owned by the company.
The assistance of an individual to travel by selling or organising transport payment tickets, hotel lodging and foreign visas to destinations outside and within Singapore. Similarly, a licence is not required if the lodging and conveyance is owned by the company.
Individuals are also deemed as a travel agent if they carry out activities that are set by the Board. These includes companies such as providing travel services, excursions, sightseeing, tours, tourist services and ticketing agents for airlines, tour buses and cruise ships.

The person or company would need to have a travel agent licence in order to run an agency. The licence will be issued by Singapore Tourism Board (STB), a government entity. Before the licence can be sent for approval, the company must have the following obligations:

The company must be set up in Singapore and have the purpose of doing business as a travel agency. The company must be registered under the Standard Industrial Classification (SSIC) codes of 78211 for Travel Agents And Tour Operators, or 78212 for Ticketing Agencies.
Cash flow and good liquidity and solvency of the company is very important. Thus, the paid-up capital that is used to set up the company must be at least S$10,000.
Employees must be a Singapore citizen, permanent resident, or employment pass holder and must also be accepted by STB.
Fourth, running a business requires the management team and executives to be of good moral character and reputation. Evidence of conduct such as letters of decent demeanour, police clearance and credit background checks may be used by STB for inspection.
Fifth, having a website allows the company to communicate with the customers through IT. Also, the company would need to examine the “Terms and Conditions for the Use of the Travel Related Users’ System (TRUST)”. It is a website providing travel industry information and advice.
Business office space and signboard must be set up if you are setting up a company that is for travel agency operations. The signboard must be concise on the services you provide. For self-employed agents, approval from Housing Development Board must be obtained before STB issues the license.

Applying for licence:

The documents needed for a license are as follows:

Latest ACRA Biz file of the company
Business Activities & Market Specialization Form
Resume and Testimonial of the Key Executive
Front & Back copy of the Key Executive’s NRIC
Key Executive’s Declaration Form
Letter of appointment & Director Resolution on the appointment of the Key Executive, printed on company’s letter head and signed by all directors with a valid company stamp.
Confirmation of Company’s Business Particulars Form
Tenancy agreement & Certificate of Stamp Duty of the premises. Ensure that the copy shows the address that has been approved and to be used as office.

Also, Sole-proprietors/partnerships are also required to submit the Credit Bureau Singapore report for the sole-proprietor/partners.

All documents are to be submitted to STB for approval. The application of the travel agent license would take about one to two weeks to process depending on the amount of completed supporting documents.

Supporting documents are stamped copy of the rental contract of the location(s). The agreement should not be less than one year.
If you are applying online at enterpriseone.gov.sg, you must declare whether you are a shareholder in other travel agencies.

The license costs $300 and expires the following year which it is issued, on 31^st December. After that, the travel agency is required to renew their licence.

How to Set Up an Employment Agency in Singapore?

Singapore Company Formation by a1 business

An employment agency is a company which act as the middleman to help assist other companies with the process of recruiting and staffing potential employees. Employment agencies are in charge placing both local and foreign candidates to positions in companies ranging from entry-level to top-level executives.

Procedure for setting up employment agencies in Singapore:

Step 1: Register a company in Singapore
To set up an employment agency, applicants must first incorporate their company in Singapore under a business code depending on the type of recruitment activities which the agency carries out. There are 2 main types of business codes:

78115 – Business activity (For agencies responsible for executive searches and headhunting)
78114 – Business activity (Applicable for other employment agencies except maid agencies)

Step 2: Setup a business office

The next step is to establish an operating business office. Applicants have the option of choosing from various office spaces depending on their budget and business requirements.

Step 3: Certifications for Key Appointment Holders and Employees

Employees and key employment holders working in employment agencies need to obtain certification through under the CEI (Certificate for Employment Intermediaries) course. The length of the course varies depending on the positions held. Key employment holders such as CEOs need to attend a 40-hour course while the course duration for regular employees is 32 hours.

Step 4: Apply for Employment Agency License

Once the CEI is obtained, the Employment Agency Licence needs to be obtained before applicants can finally start up their employment agency.

Who needs to apply?

It is necessary for every company which engages in employment agency activities in Singapore to apply for the Employment Agency License, irrespective of whether the company is located in Singapore or in other countries.

Employment agency activities include communicating with prospective candidates regarding their job application status and collating resumes of job applicants looking for employment. Moreover, it also includes submitting Singapore Work Visa Applications to the Ministry of Manpower on the behalf of employers or job applicants, as well as facilitating the placement of candidates with employers.

Types of licenses available:

Companies can either choose to apply for a Comprehensive or a Select Licence, depending on the type of employment activities the agency deals with.

The Select License is meant for agencies involved in the recruiting and staffing of candidates whose monthly base salary is S$7,000 and above. Agencies which do not meet the requirements are required to apply for the Comprehensive license instead.

Fees and Duration of application

A license registration fee of $400 will be charged for the application of the licenses. The application of Employment Agency License will take 1-3 weeks to be processed. Subsequently, upon approval of the application, applicants will be notified via an email which will also contain the IPA (in-principal-approval) letter attached.

Other Documents

Once the IPA letter is received, license applicants must then submit the following documents to be issued the license.

Security Bond – to be obtained from a bank in Singapore, in the form of Banker’s Guarantee. To be issued a Banker’s Guarantee, applicants need to open a fixed deposit (FD) account for the said amount with bank. The Banker’s Guarantee should cover 15 months from the start date.
Clear copies of applicants’ Singapore ID (for Singapore Citizens and Permanent Residents) or Employment Pass.
The latest copy of company business profile (obtained from ACRA)
Applicant’s recent passport-sized photograph
A copy of applicant’s In-Principle-Approval letter
A copy of the approval letter obtained from relevant authorities (For applicants operating under HomeOffice Scheme)
A copy of the applicant’s Certificate for Employment Intermediaries (CEI)
Completed checklist form

Once all the relevant documents are submitted, applicants will be notified via email within 7 days of document submission, that their application has been approved. After that, applicants will need to pay a $100 fee before the license is issued and mailed to the applicant’s address.

The employment license is valid for 3 years from the date of issue and applicants can renew choose to renew the license after that.

What are the benefits of setting up a business in Singapore?

Singapore Company Formation by a1 business

Singapore is ranked the number one city with the best investment potential in the world. Singapore has attracted many investors and entrepreneurs to invest and register businesses in the country as there are many benefits of setting up a business in Singapore.

The benefits of setting up a business in Singapore are as follows:

Political Stability

Singapore is a politically stable country without any foreign debt and relatively high government revenue. This has attracted potential entrepreneurs and international business to set up their business here in Singapore. As it is foreseen that Singapore will be stable for a long term basis, this implies that businesses will facing lower business risks and costs.

Also, businesses are able to draft out future business plans easily as they will not face difficulty in forecasting the industry and business trends in Singapore.

Pro-Enterprise Government

To be pro enterprise, the Singapore government has provided different types of business incentives to encourage locals and foreign investors to set up their businesses in the country.

For example, Singapore provides Productivity and Innovation Credit Claims for businesses to enjoy tax deduction or cash payout. This can help to reduce the heavy taxes and high expenses borne by a local company.

Low taxes

Also, Singapore has a low effective personal and corporate tax. Compared to Japan’s corporate tax rate of 38.01%, Singapore charges much lower tax rates of 17%. With a lower corporate tax contribution, business will benefit as they are able to earn a higher net profit in Singapore compared to other countries.

Skilled Workforce

Besides political stability, businesses can benefit by setting up companies in Singapore in terms of the high quality workforce available. As Singapore is a knowledge-based country, its labour force is well-educated and professionally qualified.

Companies will not have difficulty in employing highly skilled labour needed in the different sectors; especially so in the financial and economic sectors. They will also not face problems in searching for a qualified business partners when they are starting up a new company in Singapore.

Advanced technology and infrastructure

The technology and infrastructure of Singapore also makes it favorable for businesses. According to the 2012 Mercer Quality of Living Study, Singapore is ranked first in the world based on our infrastructure. Singapore now has a well-established infrastructure, as they have air, sea, land and telecommunication means available around the country to support any mode of transport for companies to overcome delivery and production difficulties.

The Singapore government not only seeks to develop the physical infrastructure, but to adopt up-to-date technology as well. Companies can benefit from the advanced technology as more businesses use information technology to retrieve information from customers, staff and also shareholders.

Protection of Intellectual Property

Protection of corporate intellectual property is a priority. The Singapore government has strict laws to prevent piracy in the country. This encourages business to produce and sell goods that entail valuable assets as they do not have to worry about company’s trademarks and patents. Therefore, by setting up a business in Singapore, businesses can be better protected with the intellectual property laws implemented.

Singapore has been progressing well in terms of economic growth and political stability. By providing the best investment environment, the country has become an attractive market for various businesses, due to the various benefits of setting up a business in Singapore.

What are the benefits of setting up a business in Singapore?

Singapore Company Formation by a1 business

The benefits of setting up a business in Singapore are as follows:

Political Stability

Also, businesses are able to draft out future business plans easily as they will not face difficulty in forecasting the industry and business trends in Singapore.

Pro-Enterprise Government

To be pro enterprise, the Singapore government has provided different types of business incentives to encourage locals and foreign investors to set up their businesses in the country.

Low taxes

Skilled Workforce

Advanced technology and infrastructure

Protection of Intellectual Property

Author: a1 business

Step 1: Incorporate a trading company

Step 2: Register with Singapore Customs

Step 3: Apply for licences and permits