FINANCIAL HUBS

Types of Singapore entity
- the expected nature and scale of the business activities;
- the levels of risk anticipated in the initial stages;
- the intended duration of the business activities;
- accounting and taxation considerations;
- Singapore statutory compliance and reporting obligations; and
- commercial considerations
- Company: A private limited company is a separate legal entity. The main benefit of this is that the members of a company will not be held personally liable for the debts or losses of a company.
- Limited Liability Partnership (LLP): The key differences between an LLP and the other forms of partnership lie in its legal status – it is considered to be a separate legal entity from its partners; and can own property in the LLP’s name, which is not possible for the other forms of partnership..
- Partnership: Largely similar to a sole proprietorship in terms of structure, liability, and taxes, the most significant difference is that a partnership can comprise of two or more partners, subject to a maximum cap of twenty individual partners. Once a partnership exceeds this cap, it is required to incorporate as a company under the Companies Act.

Singapore taxation
- Corporate Income Tax: Singapore’s headline corporate tax rate is a flat 17%. Since 2003, Singapore has adopted a single-tier corporate income tax system, which means there is no double-taxation for stakeholders. Tax paid by a company on its chargeable income is the final tax and all dividends paid by a company to its shareholders are exempted from further taxation. There is no tax on capital gains in Singapore.
- Personal Income Tax: In order to determine the Singapore income tax liability of an individual, you need to first determine the tax residency and amount of chargeable income and then apply the progressive resident tax rate to it. Singapore follows a progressive resident tax rate starting at 0% and ending at 22% above SGD 320,000. There is no capital gain or inheritance tax. Tax rules differ based on the tax residency of the individual.
- Social Security: Employers and employees contribute 17% and 20%, respectively, of ordinary monthly wages, up to an income ceiling of SGD 6,000. The rates are applicable to employees aged 55 years and below.

Goods & Services Tax (GST)
- What is the GST rate in Singapore: The Goods & Services Tax (GST) rate is currently 7%. The GST Act is modelled off the UK VAT legislation and New Zealand GST legislation.
- Who needs to pay GST: GST is a self-assessed tax and businesses are required to continually assess the need to be registered for GST. GST registration falls into two categories: compulsory registration and voluntary registration. Registering for GST is compulsory when the turnover of your business is more than SGD 1 million in the past 12 months or you are currently making sales and you can reasonably expect the turnover of your business to exceed SGD 1 million for the next 12 months.
- Further information: You should seek expert advice to make sure that you are paying the correct rate of GST and if your supplies will be treated as taxable supplies of goods or services. Furthermore, penalties can be levied for not registering at the correct time, for claiming GST incorrectly or not accounting for GST correctly on sales.

Setting up the office
- Co-working: If you’re a solopreneur or manage a small team, you might decide to rent desks in a co-working space. Many run events for members, enabling you to network and grow.
- Private office: If you want your own space, you can rent a private office in a flexible workspace. Shared amenities mean you’ll still pay a competitive price and get to meet other businesses.
- Managed office: Designed with medium to large businesses in mind, a managed solution provides a self-contained, customisable workspace solution on flexible contractual terms.
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