accessing asia - sbf.org.sg€¦ · accessing asia through singapore essential guide to setting up...

ACCESSING ASIATHROUGH SINGAPORE

Essential Guide to Setting up a Business In Singapore2016 / 2017 Edition

Published by: Strategic Partner:

sbf_cover_final.indd 2 29/6/16 9:56

The Singapore Business Insights Series aims to educate overseas business leaders on the drivers of Singapore’s econonic success, business regulations and Singapore Government’s economic programmes.

This programme will leverage on the sharing of information by industry practitioners, business leaders, and academia.

Contact us today to see how you can customise this programme for your top executives.

Customised learning programme for companies planning to set up in Singapore

Singapore Business Insights Series

Programme Includes:

• Singapore business regulations and legal requirements • Singapore Government’s economic and assistance programmes • Industry updates • Financing options • Business leaders’ success stories • Case studies & best practices workshops • Site visits • Networking with local companies

ACCESSASIA@SINGAPORE is an initiative by Singapore Business Federation.Contact us at [email protected]

21

41

76

18

Web: www.sbf.org.sg/Business-Expansion/AccessAsia

SINGAPORE BUSINESS FEDERATIONCONTENTS

SINGAPORE BUSINESS FEDERATIONFOREWORD

Essential Guide to Business Setup in Singapore 20162


Terms of use: This guide is for informational purpose only. All information gathered was compiled from sources believed to be reliable. No liability for any error or omission is accepted by Singapore Business Federation (SBF), its strategic partners, affiliates or any of its directors or employees. Readers are encouraged to exercise their own judgement and seek out the latest information where necessary. The services of a competent professional should be engaged if any professional advice or expert assistance is required.

3 Foreword

5-10 Singapore at a Glance The Singapore Economy Sectorial Performance Trade Performance Labour Market Costs & Price Foreign Direct Investments (FDI) Economic Outlook 2016 Singapore Business Formation 2015

11-13 Work in Singapore Foreign talents in Singapore Ranking for Major Investment Destinations Singapore’s Strategic location Ranking for Quality of living Enhancement of Human Capital Statistics on the Foreign Workforce Numbers Foreign Workforce Management

14-15 Live & Play in Singapore Culture Tourism and Recreation Singapore Cuisine Places and Things to do

16-22 Setting up a Company Singapore Types of Business Organisations Available Singapore Incorporated Company Private Limited Company Public Limited Company Partnerships Options for Foreign Companies The Business Set-up Process

23-32 Taxation In Singapore Introduction Income Tax Individual Tax and Corporate Tax Productivity and Innovation Credit (PIC) Dividend Payment Withholding Tax Goods and Services Tax (GST) Stamp Duty Property Tax Customs and Excise Duties Estate Duty and Gift Tax Exchange Control Tax Incentives International Agreements

33-35 Financial Reporting & Auditing The Accounting Profession Regulation of the Accounting Profession Accounting Records Financial Reporting Standards Companies Act Requirements Appointing Auditors Audit Exemption

36-40 Banking Financial Landscape in Singapore Types of Banks Top 20 Commercial banks in Singapore How to set up a corporate account in Singapore Personal Banking

41-46 Legal Singapore’s Legal Framework Competition Act Arbitration Merger and Acquisitions Dispute Resolution in Singapore Listing in Singapore

47-49 Human Capital The Role of HR What to expect in 2016? Quick HR wins for SMEs in Singapore The right HR Structure

51-59 Business & Residential Space Solutions Industrial Space Solutions Service Office Solutions Virtual Office Solutions The Work+Store Concept

60-62 Intellectual Property How can companies unlock the value of their intangibles to stay ahead of the game

63-75 Singapore to Beyond ASEAN background information Partnering Singapore companies to realize your global business aspirations Accessing Southeast Asia Through Singapore Access ASEAN – Indonesia

76-89 Contributors

90 Useful Websites

ACCESSASIA@SINGAPORE was launched in 2013 with the objective of building a unifying brand and ecosystem of local professional services firms to assist foreign companies in accessing Asian markets through Singapore. SBF is pleased to present the ‘Essential Guide to Business Setup 2016’, which provides an overview of the Singapore business environment and useful information on setting up business operations in Singapore.

Asia has over four billion people and a combined GDP of more than US$19 trillion; a significant market for global enterprises looking to tap the growing opportunities in this region. Singapore serves as a strategic starting point for these enterprises seeking business opportunities in A sia.

According to the World Bank Report 2015, Singapore has been ranked the easiest place in the world to do business for the past decade. The city state’s pro-business environment, excellent connectivity and distinction as Asia’s most liveable city continue to attract global companies that are considering starting business operations in the region. In the last quarter of 2015, despite lacklustre global economic conditions, a total of 16,612 new businesses were registered in Singapore, which is in line with historical trend. Additionally, we see a steady increase in the number of individual investors from countries such as Japan, Australia, Indonesia, UK and France. This influx of foreign investment is a testament of their confidence in Singapore as a regional business hub.

In 2015, ACCESSASIA@SINGAPORE brought together leading Singapore-based professional services companies to provide a one-stop business concierge for global companies looking to set up their business operations here.

We hope this guide will deepen your understanding of Singapore as the preferred business location for your business in Singapore and for expanding into the region.

Ho Meng KitChief Executive DirectorSingapore Business Federation

FOREWORDACCESS ASIA

THROUGH SINGAPORE


“We get to export our expertise through this platform and gain an extended market to provide our services to.”

-Mr. Ravi ArumugamCEO & Managing partner of RT LLP

"Leveraging on the AAS platform has further enhanced RSM's branding in the region. Our Japan Desk has also been given opportunities to offer our assistance to MNCs and SMEs in parts of Japan, for example Kyushu, which otherwise may have been a challenge for us to reach out to."

- Mr Yohei Korematsu,Manager - Japan Desk, from

RSM in Singapore.

SINGAPORE BUSINESS FEDERATIONABOUT SINGAPORE BUSINES FEDERATION

Contact us at [email protected] and take your first big step into Asia through Singapore.

SINGAPOREAT A GLANCE

The Singapore Business Federation (SBF) was established on 1 April 2002 under the SBF Act. It was inaugurated by then Prime Minister of Singapore, Mr. Goh Chok Tong. Its Council Members and Trustees are leaders of industries from key business sectors in Singapore.

SBF champions the interests of the Singapore business community in trade, investment and industrial relations. It represents 22,500 companies, comprising of local and foreign business chambers, as well as key national and industry associations from business sectors that contribute significantly to the Singapore economy.

SBF is recognised both locally and internationally as Singapore’s apex business chamber, with a strong commitment to serve the Singapore business community while creating value for its members. It organises and supports more than 500 events and activities each year, benefitting some 70,000 participants. The Federation convenes over 35 out-going business missions and receives more than 100 incoming business and government delegations annually. SBF also actively represents Singapore’s businesses not only locally, but also on bilateral, regional, and multilateral platforms.

For more information, please visit www.sbf.org.sg.

The ACCESSASIA@SINGAPORE initiative was launched in 2013 with the objective of building a single platform that brings together professional services partners to provide a one-stop business concierge for Global Enterprises, facilitating a speedy and smooth start-up in Singapore. It also functions as a platform to attract and assist companies to expand into Asia through Singapore. The initiative augments EDB’s vision to establish Singapore as the foundation of global business, innovation and talent.

One-stop Business Concierge Service

ACCESS ASIA THROUGH SINGAPORE

PROFESSIONAL SERVICES OFFERINGS

Office &BusinessSpace

CorporateAdvisory &Legal Services

CompanyIncorporation& SecretariatServices

IP Strategy

TelecommunicationsBusiness &

ManagementConsulting

Business Banking& Human Capital

SINGAPORE BUSINESS FEDERATIONSINGAPORE AT A GLANCE




WHY SINGAPOREIntroduction to Singapore

Singapore, a city-state with a population of 5.5 million, has the third highest per capita GDP in the world. It is rated as one of the most open economies in the world. Its stable political and legal system, transparent regulation, robust fiscal discipline, pro-trade policies, world-class infrastructure and global connectivity have all combined to accelerate the growth of a vibrant and innovative enterprise ecosystem that contributes to Singapore’s economic prosperity.

Despite many global economic challenges, Singapore consistently post growth and attracts investment from around the world and remained a pro-business jurisdiction of choice throughout 2015.

On a macro level, the global economy posted subdued results in 2015. Sluggish western economies, the rebalancing and slowdown of China and the slump in oil and commodity prices decelerated regional economic momentum. Singapore’s economy, which is largely focused on external trade, managed to post a modest growth, albeit falling below the IMF’s estimated global growth of 3.1%.

OVERALL ECONOMY

1 Data Source: Ministry of Trade and Industry and Statistics Singapore

SINGAPOREAT A GLANCE

Key Economic IndicatorsPopulation 5.54 million

GDPS$402 billion

Employment3.6 million

Per Capita Income S$69,283

Unemployment1.9%

Merchandise Trade S$884 billion

Real Income+5.3%

CPI-0.5%

KEY INDICATORS1

Sectoral PerformanceIn terms of nominal value added, the Services Producing Industries accounted for 69%. The Goods Producing Industries, of which manufacturing accounted for a major share, generated 26% of the value added. Manufacturing accounted for 20% of the value added.

All sectors expanded in 2015 except for the manufacturing sector, which shrank by 5.2%. Considering the fact that manufacturing accounts for one-fifth of the economy, this is a cause for concern. Services Producing Industries expanded by 3.4% and much of this was driven by the growth in Wholesale and Retail Trade segment that expanded by a phenomenal 6.1%. The Finance & Insurance sector registered the next major growth of 5.3%. The construction sector had a moderate growth of 2.5%.

Trade PerformanceMerchandise Trade

In 2015 the nominal value of merchandise trade dropped significantly by 9.5% to S$884 billion. Exports contracted by 7.2% to S$476 billion. Imports shrank by 12% to S$ 408 billion.

The decline in oil prices resulted in a sharp slump in the value of Oil Domestic Exports (ODX) and contributed to a sharp fall in the value of exports. The Non-Oil Domestic Exports (NODX) declined only marginally in 2015. For the whole year, the total domestic export amounted to S$233 billion, of which non-oil exports accounted for 68.9% and oil exports accounted for 31.1%. The value of non-oil exports dipped negligibly by 0.1% but the value of oil-exports dropped by 32%. The fall in the value of imports is also driven by the dive in the value of oil imports, which shrank by 38% for the whole of 2015. Non-oil imports declined only marginally.

Key Trading PartnersWith a total trade value of S$123 billion, China remained the top-trading partner in 2015, followed by Europe and Malaysia. The total trade value with the top trading partners dropped to S$697 billion as against S$745 billion in 2014. The top ten trading partners accounted for 78.8% of the total trade value.

Services TradeServices trade expanded modestly by 0.3% to $389 billion in 2015, compared to $388 billion in 2014. Growth in services exports and imports eased to 0.5% and 0.1% respectively. The moderate expansion in services trade was largely driven by transactions in the financial services sector.

371.53

383.64

391.34 4.7

3.3

2.0

012345

360

370

380

390

400

2013 2014 2015

Perc

ent

S$ m

illio

n

REAL GDP & GROWTH

Real GDP Value Real GDP Growth

2.7%

1.7% 1.8%

1.8%

0.0%

1.0%

2.0%

3.0%

Q1 2015 Q2 2015 Q3 2015 Q4 2015

Quarterly Growth 2015

Nominal GDPS$388 billion

GNIS$369 billion

Per Capita GNIS$67,462

2014 Nominal GDPS$402 billion

GNIS$383 billion

Per Capita GNIS$69,283

2015

Share of Industries in Nominal ValueAdded 2015

Ownership ofDwellings 4.3%

Goods ProducingIndustries

26.4%

ServicesProducingIndustries

69.2%

6.1 5.3

4.2 2.5

1.6 1.5

0.2 0

-5.2

-10 -5 0 5 10

Wholesale & Retail TradeFinance & Insurance

Information & CommsConstruction

Other Services IndustriesBusiness Services

Accomodation & FoodTransportation & Storage

Manufacturing

Percent

Sectoral Growth Rates 2015

474 467 464 408

509 509 513 476

983 976 977 884

0200400600800

10001200

2012 2013 2014 2015

Trade Performance 2012 -2015

Imports Exports Total

Non-OilDomestic

ExportsS$161 billion

Oil DomesticExports

S$72.5 billion

Total DomesticExports

S$233 billion

29.6 44.9 46.5

53.8 58.2 58.7

75.5 97.3

108.9 123.5

Thailand

Japan

Hong Kong

United States

EuropeChina

Malaysia

Indonesia

Taiwan

South Korea

0 50 100 150S$billion

Major Trading Partners 2015

349

388 389 8.9%

8.1%

0.3%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

320

340

360

380

400

2013 2014 2015

S$ b

illio

n

Services Trade & Growth

Total Trade Growth Rate

In 2015 the economy posted a Year-over-Year (YoY) growth of 2%, declining from 3.3% growth in 2014 - the weakest since the global financial crisis. The growth was largely driven by external demand, despite remaining sluggish. The modest growth in domestic demand backed by the expansion of both private and public consumption also aided the growth.

On a quarterly basis, expansion was the highest in the first quarter when it recorded 2.7%. Subsequently the pace decelerated to 1.7% expansion during the second quarter. For the last two quarters, the economy expanded at a steady pace of 1.8%.

The nominal GDP for the year 2015 was S$402 billion and the Gross National Income (GNI) for the year amounted to S$383 billion. It expanded by 3.7% Year-over-Year. The Per Capita National Income for the year grew by 2.7% to S$69,283 (US$49,273).





Exempt Private Company

28,388 ( 43.8% )

Limited Private Company

5,487 (8.5%)

Sole Proprietorship 26,284 (40.5%)

Public Company Limited

byGuarantee 167(0.03 %)

Branch Office 163 (0.3%)

Public Company Limited by Shares

39 (0.1%)

Limited Liability Partnership 2,102(3.2%)

Partnership 2,195 (3.4%)

Company Formation by Entity Type 2015

Consumer Price Index (CPI)

Consumer Price Inflation dropped marginally in 2015 by 0.5%. Much of the inflation was caused by the rise in prices of food and education. The other categories such as recreation and communication also climbed up marginally during the year, driving consumer prices up. Although there was a drop in other important categories such as Housing & Utilities and Transport, it failed to offset the price increase in other predominantly impactful categories.

Producer Price Inflation

All indices – Domestic Supply Price Index (DSPI), Singapore Manufactured Products Price Index (SMPPI), Import Price Index (IPI) and Export Price Index (EPI) registered sharp contraction. This was caused by the steep fall in the prices of oil and commodities.

Education3.4%

Food1.9%

Housing &Utilities-3.5%

Transport-1.4%

Labour MarketA total of 31,800 new jobs were created in 2015, but this fades in comparison with 130,100 jobs created in 2014. This is attributed to the global economic slowdown. The Services Producing industries such as Food and Accommodation Services, Business Services, Wholesale and Retail Trade prompted much of this job creation. Job growth in the manufacturing sector contracted sharply. There were 3,655,600 employed people in Singapore, of which 62.1% were citizens/ residents and 37.9% were foreigners.

Productivity, in terms of value added per worker, dipped marginally by 0.1% as against 0.5% in 2014. The overall unemployment rate, despite the gloomy global markets, remained at 1.9%. The citizens’ unemployment rate among remained at 2.9% but it dipped marginally to 2.8% among residents. Amidst the tight labour market, the nominal median income of full-time employed residents shot up by 4.7% to S$3,949. Prompted by the negative inflation, real income significantly spiked by 5.3% as against a modest growth of 0.7% in 2014.

Costs & PricesLabour Cost and Manufacturing Business Cost

In 2015, the overall Unit Labour Cost (ULC) moderated to a 2.8% growth as against the 3.3% increase in 2014. The rise in wages prompted by the tight labour market and the fall in productivity contributed to the increase. But in 2015, the manufacturing ULC registered a sharp spike of 6.3% from the moderate growth of 2.5% in 2014. The manufacturing sector’s productivity dropped significantly in 2015 due to the slowdown in the global economy causing labour costs to increase significantly. The Unit Business Cost spiked by 1.4% in 2015.

Foreign Direct Investments (FDI)The total stock of FDI in Singapore increased by 16.4% in 2014 to S$1,005 billion, a rate higher than the 14.1% growth in 2013. The total stock of Singapore’s FDI abroad increased by 12.8% in 2014 to S$604 million.

Source: Statistics Singapore

Singapore A GlobalEnterprise Hub

OperaEconomy

World-ClassInfrasructure

TransparentRegulations

RobustLegal

Systems

High QualityWorkforce

StrategicLocation &

Conncetivity

ExtensiveInvestment &

TradeTreaties

Stable PoliticalSystems

CompetitiveTax Rates

Singapore is the top recipient of FDI in South East Asia. It is the fifth largest recipient of FDI in the world. – UNCTAD 2015 World Investment Report

Economic Outlook 20162015 ended on a sombre note, with growth falling below the forecast. For the year 2016, the government maintains its growth estimates of 1-3%. Singapore is challenged by the global slowdown; cyclical and domestic factors are further toughening the challenge. The cyclical risk of global recession has not yet been dealt away; growth in the US is gathering momentum but at a slow pace and larger parts of Europe remain in the doldrums. Singapore’s economic restructuring has resulted in a tight labour market and the global disinflationary trend has weakened exports resulting in poor productivity. The challenge of leverage overhang is imminent amidst Fed normalisation.

The global economy is expected to find a path of steady progress by the second half of 2016, provided the US recovery picks up pace and reverses the disinflationary trend. The rest of the advanced economies are expected to inch up moderately at the back of policy tools. This will send some growth shoots in Singapore and regional economies by the second half of 2016. In 2016, the service sector will again be the key driver of growth while manufacturing will post modest gains from the negative base and improve external demand. The construction sector will post modest growth, while the financial sector may have to navigate speed bumps from the impact of rate hikes.

Singapore Business Formation 2015Singapore’s strategic location along the corridors of east and west provides a strong traction for enterprises, investors and entrepreneurs interested in exploring market opportunities on both sides of the hemisphere. Singapore has a pro-business environment nurtured by proactive government agencies such as International Enterprises (IE) and Economic Development Board (EDB). IE promotes international trade of Singapore companies and also helps them internationalise. IE also plays a key role in attracting international companies to setup in Singapore. The EDB is the agency responsible for planning and executing the economic strategies to sustain economic growth and a vibrant business climate in order to provide a strong traction for companies and investors.

Political and economic stability, robust regulatory and legal framework, a competitive tax regime and strategic location have together made Singapore the most favoured business location among global investors and enterprises. The process of setting up a company in Singapore is simple and transparent. Wide ranges of legal entities are available for businesses to choose from, depending on the nature of business and future plans.

Global economic conditions remained flat in 2015. The impact of the blow was felt in Singapore, an externally oriented economy. For the whole of 2015, a total of 64,825 new businesses were formed. This is 16.1% lower than that of 2014.

Company Formation by Entity Type

EmploymentGrowth31,800

Productivity-0.1%

UnemploymentOverall: 1.9%Resident: 2.8%Citizen: 2.9%

Real Income Growth5.3%

20152014 EmploymentGrowth130,100

Productivity-0.5%

UnemploymentOverall: 2%Resident: 2.7%Citizen: 2.9%

Real Income Growth0.7%

2.9

1.4

3.3 2.8

4.8 6.1

-2.1

1.4 2.8

3.3 2.5

6.3

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

2012 2013 2014 2015

Perc

ent

Unit Labour Cost

ULC Overall UBC Manufacturing

Manufacturing ULC

-15.3%

-9.2%

-12.6%

-6.9%

-20

-15

-10

-5

0

2013 2014 2015

Changes in Price Indices

DSPI SMPPI IPI EPI

757 864

1,005

493 535 604

0

200

400

600

800

1,000

1,200

2012 2013 2014

S$ b

illio

n

Stock of FDI

FDI Stock in Singapore

Singapore's FDI stock abroad

Top Investors (Stock in S$ billion)

USA150

Japan109

B.VirginIslands 82

Top Investors (Stock in S$ billion)

China112

CaymanIsland 58

Hong Kong49



A total of 33,875 Private Limited Companies were formed in 2015, amounting to the lion’s share of 52.2% of the new business formation. In line with the historical trend, the majority of the new business formation was Exempt Private Limited Company (EPC), the most popular type of entity in Singapore. Nearly 84% (28,388) of Private Limited Companies were Exempt Private Companies, accounting for 43.8% of the total business formation. 5,487 Non-Exempt Private Limited Companies were formed. This amounted to a 2.1% increase against 2014, while the EPC plunged by 13.5%. It is interesting to note there are more non-exempt companies; this means medium and large size businesses are being formed. This may be due to the proactive measures by companies to fight the tough times ahead through efficient structuring. Non-exempt companies have relatively stringent compliance requirements such as mandatory annual auditing.

26,284 Sole Proprietorships were formed during the year taking a share of 40.5% in the total new business formations. This entity type is suitable for small and less risky businesses. The number of Sole Proprietorship registrations, which was highly inflated in 2014, returned to the normal historical average. The fall in this category mainly contributed to the steep slump in the total business formation numbers this year.

Partnerships, with 2,195 registrations, accounted for 3.4% of the new businesses formed. Limited Liability Partnerships (LLP) took a share of 3.2%, with 2,102 registrations. 163 branch offices were registered during the period. All categories registered a sharp decline in 2015, as against 2014 when the numbers were inflated by the attempts to legitimise business activities to qualify for the government’s incentive schemes.

167 Public Companies Limited by Guarantee and 39 Public Companies Limited by Shares were formed. Public Companies Limited by Shares increased sharply by 56% against 2014, underscoring the business confidence in Singapore’s capital market, and despite the faltering global markets.

Company Formation by Share Capital75% of the companies formed in 2015 had a share capital of S$10,001 –S$100,000. Correspondingly, there was a marginal increase in the share of companies with share capital of S$100,001 – S$499,999 (from 3% in 2014 to 4% in 2015). The share of companies with a share capital of S$500,000 or more remained intact. The shuffle in the share indicates that more medium size companies were formed in 2015, underscoring the strong business fundamentals of Singapore.

Company Formation by Ownership The share of 100% locally owned companies remained dominant, with 65%. The share of mixed ownership, both local and foreign accounted for 11%. Companies with 100% foreign ownership held a share of 24%. The shares remained unchanged from 2014.

Company Formation by SectorIn terms of sectors, Wholesale Trade, Financial Services and Activities of Head Office and Management Consultancy were the top three sectors that formed new businesses in 2015. While the share of Wholesale Trade sector dipped marginally by 1%, the Financial Services sector gained by 1%.

Company Formation by Corporate Shareholder Country

The share of subsidiaries setup by Singapore companies has gone up to 51% as against 49% in 2014. It is attributable to the resilience of the domestic economy and also to the pre-emptive measures by companies to brace themselves for the impact of the impending slowdown through tax efficient business structuring.

The share of subsidiaries of companies from the USA, China and the UK increased marginally by 1% in 2015. The sluggish western markets and the slowdown and restructuring in China have urged companies and investors to expand into Asia, and Singapore offers an ideal launch pad for them.

Company Formation by Individual Shareholder CountryThe share of foreign individuals setting up company in Singapore rose to 26% from 24% in 2014. Singaporeans are taking a cautious approach because of the slowing economy and the tightening credit rates.

Indians accounted for a significant share of 5%. The easy availability of credit and increased income from domestic economic growth must have prompted Indian investors and entrepreneurs to explore opportunities beyond their borders. The share of Chinese dropped to 4%, the restructuring in China must have opened up opportunities for them in domestic markets.

Contributed by: Hawksford Singapore

WORK INSINGAPORE

SINGAPORE BUSINESS FEDERATIONWORK IN SINGAPORE

SINGAPORE BUSINESS FEDERATIONWORK IN SINGAPORE



Foreign Talents in SingaporeThe favourable conditions in Singapore have attracted many foreign talents worldwide to uproot for both employments, as well as to set up their own businesses here. To reign itself firmly as a world class city so as to attract foreign investment for resource scarce Singapore, the government has implemented several attractive pro-business initiatives.

Singapore’s Ranking for Major Investment DestinationsIn its BERI Report 2015-I (April 2015), US-based research institute Business Environment Risk Intelligence (BERI) ranked Singapore first out of 50 major investment destinations in a ranking that assesses operations, politics and foreign exchange. Businesses that operate in Singapore has no restrictions on the repatriation of profits, the import of capital and allows 100% foreign ownership of a company. Alongside with the most favourable operating conditions and strong diplomatic ties, Singapore’s stable political and economic climate creates an ideal business environment for many foreign companies and investors.

Ranked By +5 Years 100=Perfect Country

Present Combined

Score

+5 Years Combined

Score

1 Singapore 75 75

2 Switzerland 73 73

3 Taiwan 68 72

4 Norway 69 71

5 Germany 70 69

6 Austria 66 65

7 Netherlands 66 65

8 Canada 62 63

9 United States 59 63

10 Korea (South) 60 62

11 Denmark 57 61

12 Finland 56 61

13 Ireland 56 61

14 Australia 58 60

15 China 57 60

Source: BERI Report 2015-I (April 2015)

Singapore’s Strategic LocationSingapore is strategically located geographically with excellent transport infrastructure via land, air and sea. Singapore’s world-class transport links it to different continents such as Asia, America, Europe and the Oceania regions. The Singapore Changi Airport is also ranked 6th worldwide for international passenger traffic. This is an important factor of consideration for multi-national corporations and foreign companies who have chosen to either set up their subsidiaries in Singapore or even positioned their headquarters here. These companies have the best of both worlds to take advantage of the high quality of labour either locally by hiring Singaporeans or by employing foreign talents on work passes.

Singapore’s Worldwide City Ranking for Quality of Living

With a high quality of living, Singapore is able to attract foreign talents from diverse specialized fields such as Banking and Finance, Information Technology, Law and Biomedical, to be based here.

Based on the Quality of Living Worldwide City Rankings in the Mercer’s 18th Annual Global Quality of Living rankings, Singapore is placed 26th worldwide and first in Asia. The ideal environment, excellent facilities and infrastructure allows its people to enjoy a good quality of life due to a stable political climate, world-class transportation and healthcare system as well as entertainment variety.

Mercer’s Quality of Living Survey (Asia Cities)

Overall Ranking 2015 City Quality of Living Index (Asia)

1 Singapore 103.5

2 Tokyo 101.4

3 Yokohama 100.8

4 Kobe 100.8

5 Osaka 100.5

Source: Mercer Human Resource Consulting, 2015

Mercer’s Quality of Living Survey (Asia Cities)

Overall Ranking 2015 City

1 Singapore

2 Nagoya

3 Osaka

4 Tokyo

5 Yokohama

Source: Mercer Human Resource Consulting, 2015

Concurrently, Singapore is also ranked 8th place as the safest city worldwide and first place in Asia in terms of personal safety.

The cities, 221 in total , were evaluated on 39 factors including political, economic, environmental, personal safety, health, education, transportation and other public service factors. Cities were compared to New York City which was given a base score of 100.

Many foreign talents who have started off as employment pass holders have eventually became permanent residents or citizens.

Government’s expenditure on Education to enhance Human Capital

Being a small nation with no natural resources of its own, Singapore’s core asset is the high quality of its human capital. Over the years, the government has spared no expense on its public expenditure for education to produce the best quality workforce. Education expenditure has consistently been the second highest after defence in the government’s annual fiscal budgets. In the 2015 budget, the estimated

WORK INSINGAPORE

expenditure claimed a 12.1% share, just marginally short of the defence budget of 13.1%.

The expenditure on education is not limited to the local students. The ASEAN Undergraduate Scholarship is a freshmen scholarship offered to support outstanding students from ASEAN member countries to study at tertiary level at our local polytechnics and approved universities. The attractiveness of this scholarship lies in the fact that there is no bond attached to the ASEAN Undergraduate Scholarship. Foreign students are only required to take up the MOE Tuition Grant to receive the scholarship. Under the terms of the Tuition Grant, offered by MOE, these Asean scholars will be required to work for a Singapore-registered company for a minimum of 3 years to a maximum of 6 years immediately upon graduation depending on the course of studies.

Statistics on the Foreign Workforce NumbersBased on the data released by the Ministry of Manpower, the number of Employment Pass being issued has dropped from Dec 2011 to 2012. From Dec 2012 to 2013, there is a marginal increase of 1,300 Employment Pass and by Dec 2014 to 2015, the increase stands at 9,000.

Foreign Workforce Numbers

Pass Type Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015

Employment Pass (EP) 175,400 173,800 175,100 178,900 187,900

S Pass 113,900 142,400 160,900 170,100 178,600

Work Permit (Total) 901,000 942,800 974,400 991,300 997,100

- Work Permit (Foreign Domestic Worker) 206,300 209,600 214,500 222,500 231,500

- Work Permit (Construction) 264,400 293,300 318,900 322,700 326,000

Other Work Passes2 7,600 9,300 11,300 15,400 23,600

Total Foreign Workforce 1,197,900 1,268,300 1,321,600 1,355,700 1,387,300

Notes:1. Data may not add up to the total due to rounding.2. Other Work Passes’ includes Letter of Consent (LOC) holders and Training Work Permit (TWP) previously included in published Work Permit (WP) figures. Training Employment Pass (TEP) was included in ‘Other Work Passes’ from Mar 2014 onwards.

With this scheme, foreign students first enter Singapore as a freshman to study and adapt to the way of life. This head start minimizes the cultural differences and allows the student to have a better understanding of Singapore from all aspects. Eventually, they are able to assimilate easily when they are eased into the work force.

Many of these foreign students have also continued to stay in Singapore and set up their families here.

Based on the data extracted from Singapore Statistics Board, Singapore’s total population was 5.47 million as of June 2014, of which the permanent residents (PR) makes up a significant 0.53 million.

Measures Implemented to Manage Foreign WorkforceTo strike a balance to placate its people and manage foreign worker dependence, the government will continue to calibrate the inflow of foreign talents carefully, especially its quality. All foreigners working in Singapore is required to apply for a work pass. The Employment Pass, which is the highest tier of the work pass, is open to all nationalities and foreigners. Applicants generally need specialized skills, a good employment history set or tertiary education with certificates issued by reputable and approved institutions to be eligible.

The government has also taken further measures such as raising the minimum salary for an employment pass to SGD$3,300. The Fair Consideration Framework has also been implemented as of August 2014 to ensure Singapore employers review their existing hiring procedures. This ensures suitable qualified locals are not marginalized from the onset and be considered for any work positions in mid-size organizations. Employers will be required to advertise their job opening on Jobs Bank before they can submit an Employment Pass application. The advertisement must be open to Singaporeans and run for at least 14 days.

The government hopes that the locals will be reassured that jobs are not taken away from them and appreciate the fact that they do take its people’s feedback seriously. With these control measures in place, both locals and foreigners are on a level playing field with respect to employment as they are both equally contingent to Singapore continued economic development.

In the Economic Strategies Committee (ESC) report published by the Ministry of Finance in 2010, one of the key recommendations on foreigners by former Finance Minister Tharman Shanmugratnam and his team is as follows: “However, even as we moderate the growth of the total foreign workforce, it remains critical for Singapore to continue attracting highly capable and entrepreneurial people from around the world to work here. They will complement our home-grown talents, and add to the critical mass of talent in science and engineering, design, finance and start-ups that Singapore needs to be a serious player in the knowledge-based economy.”

Contributed by: Kaiden Group Pte LtdYour one-stop solution for all your corporate needs

SINGAPORE BUSINESS FEDERATIONLIVE & PLAY IN SINGAPORE


LIVE & PLAYIN SINGAPORE

LIVE & PLAYIN SINGAPORE

CultureSingapore is home to a multicultural population that comprises the Chinese (74.3%), Malays (13.3%), Indians (9.1%), and Others (3.2%). Singapore has adopted one representative language for each of the four major ethnic groups: English, Mandarin, Malay, and Tamil. Malay is the national language of Singapore while English is the common language used and the medium of instruction in schools.

The presence of the varieties of Malay and Mandarin dialects has resulted in an influence over the type of English used in Singapore. Commonly known as ‘Singlish’, this informal English has evolved into a badge of identity for many Singaporeans as it includes words from Malay, Mandarin and Indian languages (Source: www.yoursingapore.com).

Tourism and RecreationSingapore may be well-known for its economic success but not many are aware of the country’s attractiveness as a place of enjoyment, recreation, and relaxation. Under the façade of a dull and uptight city-state lies one of Asia’s best shopping areas, nightlife hotspots, and tourist attractions.

Singapore CuisineSingapore is a food paradise, and Singaporean food is the embodiment of the country’s multiculturalism. Centuries of cultural interaction has made Singaporean cuisine an amalgamation of culinary expertise from the Malay, Chinese, Indian, Peranakan, and Western societies. There are about 6,500 food establishments spanning across the small city-state.

Contributed by: Singapore Business FederationThe Apex Business Chamber

Snapshot: Average Cost of Living in Singapore (2014-2015)

S$4 - S$6Food prices at hawker centres

S$600 - S$1,000Monthly cost of keeping a live-in domestic helper

S$1.80Single bus journey or MRT

S$3.30Starting price for

taxis

S$40Consultation fee at a general practitioner

S$35 - S$100Monthly mobile subscription fee

S$2,000 - S$4,000+

Monthly internatinal school fee

S$500 - S$1,500Monthly full day childcare

services

S$5.50640 ml bottle of beer

S$100 - S$200Average utilities per month

(1-2 person)

S$124Monthly fee for fitness clubs per

adult

S$135,988Price of a new Toyota Corolla

S$3,478Monthly residential

housing rental (3 BR outside city

centre)

S$13Pack of cigarettes

SINGAPORE BUSINESS FEDERATIONSETTING UP A COMPANY IN SINGAPORE


SETTING UPA COMPANY

IN SINGAPORE

SETTING UP A COMPANY IN SINGAPORETypes of Business Organisations Available

Singapore remains one of the easiest international financial centres in which to do business. The city-state has retained its top spot in the World Bank’s Doing Business Report for ten consecutive years. The report ranks 189 jurisdictions and a key factor analysed is the ease of setting up business. The entire process of incorporation, right from company name approval of setting up a company in Singapore is straightforward and can be completed in less than two days. Requirements for setting up a company in Singapore is simple and transparent. This fuss-free system has secured the ‘business friendly’ top spot for the country.

True to its reputation as a business haven, Singapore offers a wide spectrum of business entities that adequately meet the needs of businesses. If you are considering setting up your business in Singapore you must first evaluate the nature and needs of your business and choose the type of legal entity that will best suit your business needs. In order to make this critical decision, it is essential to understand the many types of business entities and their relative merits and key features.

Singapore incorporated Company

A company is registered with the Singapore company registrar Accounting and Corporate Regulatory Authority (ACRA), under the Companies Act. An incorporated company has a unique legal identity and is separated from its shareholder/members/ owners. The personal assets of the owners of the company are insulated from the debts and liabilities of the company. The company can own property and can sue and be sued in its own right. The owners’ liability is only limited to the assets of the company and the amount of share capital that they have subscribed to. As a corporate body incorporated in Singapore, companies are entitled to the benefits of the competitive corporate tax rate on their chargeable income. More importantly, while its profits are subjected to corporate

SETTING UP A COMPANYIN SINGAPORE

tax the dividends earned by the owners are exempted from tax under the single-tier taxation system.

Shareholders can be both natural persons and body corporate with 100% foreign shareholding allowed. This is a sophisticated structure because, along with limiting the liability of its owners, it also offers scalability, perpetuity and ease of transferring ownership. The following types are available:

Private Limited CompanyThis is the most preferred structure among local and foreign entrepreneurs. The number of shareholders is limited to 50 or less. Such companies are usually identified by the suffix “Pte Ltd” (an abbreviation of “Private Limited”) attached to the company name.

This is the most popular structure among small and medium sized businesses. It conveys the long-term commitment of its owners and the positive perception is helpful in raising finance and capital as well as attracting quality employees.

Exempt Private CompanyCompanies that have less than 20 shareholders, all being natural persons, with annual revenue of S$5 million are exempted from audit. Such companies are known as “Exempt Private Company”. From 2015, with the coming into force of the amended Companies Act, a new ‘Small Company’ regime has been introduced. This expands the scope of audit exemption and more companies are set to benefit. A company will qualify as a small company and avail exemption in a Financial Year (FY) if it is a Private Company during that particular FY and fulfils any two of the following three quantitative conditions in each of the past two immediate FYs:

1. Annual revenue of not more than $10 million; 2. Total assets of not more than $10 million; 3. Not more than 50 employees

The cost of setting up and ongoing compliance is relatively expensive when compared to partnerships and sole proprietorships; however the advantages outweigh the costs.

WHY SINGAPORE





Public Limited Company

Public Company Limited by SharesA Public Company can have more than 50 shareholders and their liabilities are limited to the subscribed share capital. The company may offer shares to the public. The compliance requirements are very stringent and the costs involved are very high.

Public Company Limited by Guarantee This structure is used by non-profit organisations and organisations serving public or national interest.

SOLE PROPRIETORSHIP

Ideal for very small and less risky businesses, this type is the easiest to set up. The registration and post registration compliance costs are very minimal because they are exempted from annual audits and filing of annual returns.

Singapore citizens, PR and holders of EP, EntrePass and Dependant passes are eligible to register as a sole proprietor. A local resident manager must be appointed and the sole proprietor can also act as manager.

Sole Proprietorship does not have a separate legal identity. The owner of the business owns all the assets and liabilities of the business. There is no corporate veil limiting liabilities or protecting the personal assets of the business owner. Therefore, a sole proprietor is responsible for all liabilities of the business. Debtors of the business can sue and make claims against the personal assets of the owner. This is a major drawback of this entity type.

It is highly challenging to expand the business or raise funds as this entity type lacks perpetuity and also does not reflect the owner’s commitment to long-term business growth.

Profits of the business are taxed at personal income tax rates. The registration must be renewed annually.

PARTNERSHIPThis structure, registered with the ACRA under the “Business Registration Act”, enables two or more people to co-own the business. This facilitates the pooling of funds and resources of the partners entering this business arrangement. Partnerships do not have a separate legal identity and the partners are personally liable for the debts and liabilities of the business. The duties, rights and liabilities of the partners are governed by a partnership agreement. Partnerships are exempted from annual audits and annual filing of returns. In Singapore Partnerships can be one of three types:

General Partnership

In this arrangement the partners are personally liable for the debts and liabilities of the business and their liability is unlimited. The partners are accountable for the outcomes of the actions or inactions of the other partners. A partnership business does not have perpetuity; its existence is affected by change in partners, or by death, insolvency, incapacity or resignation of partners. Any aggrieved partner may serve a notice and dissolve the partnership. A General Partnership that has more than 20 members has to be incorporated as a company.

Limited Partnership

In this arrangement there is a general partner and limited partner. In this structure, the liabilities of the limited partner are limited to their commitment of capital or assets. The limited partner has no active role in the management of the business. The liabilities of the general partner are unlimited. There is no cap on the number of partners but there has to be a minimum of one limited partner, failing which the registration will be suspended and the firm will be deemed as a general partnership. Only general partners can dissolve or terminate the partnership. It has to be registered with ACRA under the Limited Partnership Act and must be renewed annually. Individual partners’ share of the profits is charged at their personal tax rate while corporate partners’ share is charged at the corporate tax rate.

Both General Partnership firms and Limited Partnership firms cannot own property. Although it is easy to set up and the ongoing compliance requirements and costs are minimal, it is not suitable for businesses of a fair size as it will severely challenge business growth and will be detrimental to the personal assets of the owners if the business is risky in nature.

Limited Liability Partnership

The relatively new type of business entity came into existence with the enactment of Limited Liability Partnership Act in 2005. This effectively addresses the drawbacks of Partnership by integrating the merits of an incorporated private company.

Unlike Partnerships, a Limited Liability Partnership (LLP) has a separate legal identity. The liability of a partner is limited and they will not be personally accountable for the liabilities or debts that arise due to any wrongful acts or wilful negligence of other partners. However a partner is personally liable for the liabilities or debts that arise due to their mistakes and negligence. LLP is ideally suited for professionals like lawyers, engineers and accountants.

Contrary to general partnership and limited partnership, which lack perpetuity, LLP is perpetual as it has a separate legal persona. An LLP can own property, enter into contracts or sue or be sued in its own right. However for the purpose of taxation, the income of an LLP is still treated as personal income of the partners and the partners’ share of the profits are subjected to personal tax rates. Where a partner is a company, its share of the profit is subjected to corporate tax rate.

LLP has relative merits over a general partnership however it lacks certain features of a body corporate, especially the ease of transfer of ownership. It is deprived of the competitive corporate tax rates.

OPTIONS FOR FOREIGN COMPANIESA foreign company may choose to set up a subsidiary in Singapore by incorporating a Singapore company. This will enable it to access the friendly corporate tax rates on its chargeable income. Alternatively, before committing huge resources, it may choose to test the waters by setting up a Branch Office or Representative Office.

Branch Office

A Singapore branch of a foreign company has to be registered with ACRA before commencing operations. It has no legal identity of its own and it is deemed to be an extension of the head office. The head office is liable for all the outcomes of the activities of the branch office. The foreign company owns 100% of the branch office. The name of the branch office must be the same as that of the foreign company and must be approved by ACRA. At least one authorised representative, a person ordinarily resident in Singapore, must be appointed. There is no restriction on headcount. A local registered address is mandatory.

The structure is treated as non-resident for tax purposes and is not entitled to Singapore tax incentives and benefits. Only the portion of its chargeable income that is sourced in Singapore is subjected to tax. The branch office must submit annual audited accounts of its head office as well as that of its own to ACRA.

Representative Office

Foreign companies can set up a representative office (RO) for the purpose of market research or for administrative purposes but as such a RO cannot engage in revenue generating activities. A RO must be registered with International Enterprises (IE); however companies operating in the finance, insurance and banking sectors must be registered with the Monetary Authority of Singapore (MAS).

The registration must be renewed annually and after three years a RO must graduate to a branch office or a subsidiary office.

The structure is transitory in nature and does not have any legal persona therefore it is prohibited from entering contracts of any kind. An authorised representative from the parent company must be appointed. There is a limit on the number of employees; presently the headcount is capped at five.




The Business Set-up Process

Incorporating a CompanyReservation and approval of a name for the company is the first step in the incorporation procedure. This is done by submitting the proposed company name and relevant information online to the Accounting and Corporate Regulatory Authority (“ACRA”) together with payment of the requisite fee.

Once the name is approved, the incorporation information and documents, when ready, can be e-filed with ACRA. The company can commence business once it receives an e-notification of incorporation from ACRA, usually on the same working day of successful e-filing. A hard copy of the certificate of incorporation can be purchased from ACRA for a fee.

A Singapore company can be incorporated with a minimum of one director, who must be a natural person. Every company must have at least one director who is ordinarily resident in Singapore. Likewise, a company can have a minimum of one shareholder who may be an individual or a corporate entity. There is no restriction on foreign equity participation in a Singapore company.

There must be at least one company secretary who is a natural person and has his principal or only place of residence in Singapore. The sole director cannot, at the same time, act as the company secretary. Every company must have a registered office in Singapore to which correspondence may be sent.

The pre-incorporation procedures for the formation of a public limited company are essentially similar to those of a private limited company. The additional documents to be filed with ACRA are a statement in lieu of prospectus and a statutory declaration of compliance by the director that the company has not issued a prospectus.

In addition to the e-notification of incorporation, ACRA will issue a notification stating that the company is entitled to commence business.

A public company is required to hold a statutory meeting within a period of not less than one month and not more than three months after the date when the company is entitled to commence business. A copy of the statutory report and the auditors’ report, if any, must be lodged with the Registrar at least seven days before the date of the statutory meeting.

Annual Requirements for CompaniesEvery company must appoint one or more auditors to report to its members on the accounts of the company unless it is dormant or a small company. A dormant company refers to a company with no accounting transactions.

With effect from 3 January 2016, a dormant company is exempt from preparing financial statements if:(a) It is not listed (or not a subsidiary of a listed company);(b) Dormant for the entire financial year; and(c) Total assets of the company must be less than S$500,000. For a

parent company, the consolidated total assets of the group at any time within the financial year must not exceed S$500,000.

The introduction of the “small company” concept is effective from the financial year commencing on or after 1 July 2015. To qualify as a small company, a company must be a private company that fulfils at least two of the following three quantitative criteria in each of the immediate past two financial years:

(a) Total annual revenue of not more than S$10 million

(b) Total assets of not more than S$10 million(c) Number of employees of not more than 50

At each annual general meeting (AGM) of the company, the directors of the company are required to present an audited or unaudited (as the case may be ) set of financial statements that gives a true and fair view of the company’s affairs in the preceding financial year.

The first AGM of a company must be held within 18 months from the date of its incorporation and thereafter, subsequent AGMs must be held once every calendar year and not more than 15 months after the last AGM. The audited or unaudited accounts (as the case may be) to be laid before the shareholders at the AGM should be made up to a date not more than six months before the date of the AGM.

A private company may dispense with the holding of AGMs. All matters to be done at the AGM, such as laying of accounts and appointment of auditors, can be resolved or done via written resolutions.

Every company is required to file its annual return including where applicable, its audited accounts and/or financial statements in XBRL format with ACRA within 30 days after its AGM.

Registration of a Foreign Company

ProceduresThe first step in the registration of a branch of a foreign company in Singapore is to seek ACRA’s approval of the name of the corporation. Once the name is approved, the registration documents and information, when ready, can be e-filed with ACRA to register the Singapore branch of the foreign company.

Under the requirements of the Companies Act, Cap. 50, a Singapore branch must have at least one authorised representative who must be ordinarily resident in Singapore.

The authorised representative of a foreign company is answerable for the execution of all acts and matters required to be done by the foreign company under the Companies Act, Cap. 50. The authorised representative is also personally liable for any penalties imposed on the foreign company for any contravention.

Annual Requirements for Foreign CompaniesA foreign company is required to lodge the following documents with the Registrar:• Financial statements made up to the end of its financial year

together with a declaration in the prescribed form (i.e. head office accounts); and

• A duly audited statement showing its assets used in and liabilities arising out of its operations in Singapore, a duly audited profit & loss account in respect of its operations in Singapore and a statement of the name of the auditor (i.e. branch accounts)

The financial statements of the Singapore branch and the company (i.e. head office) are to be e-filed with ACRA within 60 days after the date of the AGM of the corporation. If the company is not required to hold an AGM in its country of incorporation and to prepare its balance sheet, it shall e-file with the Registrar, financial statements in such form and containing such particulars as the directors of the company would have been required to prepare or obtain if the foreign company were a public company incorporated in Singapore, within a certain prescribed deadline. The company may, however, apply to the Registrar in writing for an order relieving the foreign company from the requirements of the Companies Act, Cap. 50 relating to the form and content of the accounts or report.

NEW YORK

TOKYO

FRANKFURT

LONDON MUMBAI

PARIS

BEIJING

HONG KONG

ZURICH SYDNEY SAN FRANCISCO

SINGAPORE

FMG CORPORATE SERVICES PTE LTD

8 Wilkie Road, #03-01, Wilkie Edge, Singapore 228095 | T +65 6533 7600 | F +65 6594 7855 | [email protected] | www.FMG.com.sg

Managing Your ComplianceGlobally

Managing Your Compliance

Globally

FORMATION | COMPLIANCE | ADVISORY



In addition to the annual filing requirements, the Singapore branch is required to e-file any changes in the particulars of the foreign company with ACRA, that is, any change of directors and their particulars, change of capital, amendments of its constitution or change of authorised representative.

Registration of a Limited Liability Partnership (LLP)To register an LLP, the following information must be submitted to ACRA electronically:• The proposed name of the LLP, its proposed principal activities and

registered address• The name and personal particulars of each partner and if the

LLP partner is a corporate entity, the name of the company, registration number, date of registration, registered office, country of incorporation/registration and personal particulars of the authorised representative

• The name and personal particulars of the resident manager

At least one resident manager has to be appointed and his role is prescribed by the LLP Act. He is answerable for the execution of all acts and matters required to be done by the LLP relating to annual declaration of solvency/insolvency, the publication of name and limited liability, and the registration of changes in the particulars of the LLP. The manager is also personally liable for all penalties imposed on the LLP for any contravention of those sections under the LLP Act unless he satisfies the court hearing the matter that he should not be liable. In addition, the manager is responsible for submission of the LLP’s tax return to the Inland Revenue Authority of Singapore (IRAS).

Contributed by:FMG Corporate Services Pte Ltd

Managing Your Compliance Globally

TAXATIONIN SINGAPORE

SINGAPORE BUSINESS FEDERATIONTAXATION IN SINGAPORE


TAXATIONIN SINGAPORE

IntroductionThe major types of taxes that affect businesses and companies in Singapore are income tax, goods and services tax, stamp duty, property tax and customs and excise duties. Singapore has no capital gains tax.

The Inland Revenue Authority of Singapore (IRAS) acts on behalf of the Singapore government and its roles are shown in the following diagram:

Assess Taxes

Collect Taxes

Inland Revenue Authority of Singapore

Enforce Taxes

Represent Singapore onInternational Tax Matterse.g. Tax Treaty Negotiations

Administer Taxes

Income TaxIncome accruing in or derived from Singapore, or received in Singapore from outside Singapore, is subject to income tax in Singapore unless the income is specifically exempt from tax. The types of income subject to tax include income from trade, business, profession or vocation, employment, dividends, interest, rentals, royalties and other gains or profits that are of an income nature.

For taxation purpose, income is assessed on a preceding calendar year basis as follows:

Income from 1 January 2015to 31 December 2015

Assessable for taxation inyear of assessment 2016

However, companies whose accounts are made up to a date other than December 31 are permitted to adopt the financial year end as their basis period as illustrated in the following example:

Income from 1 October 2014to 30 September 2015

Assessable for taxation inyear of assessment 2016

There are differences in income tax treatment between a tax resident and a non-tax resident of Singapore. A tax-resident individual is one who is physically present or exercising employment in Singapore (other than a company director) for 183 days or more during the calendar year preceding the year of assessment, or who resides in Singapore except for temporary absences from Singapore that are reasonable and consistent with a residency claim on the grounds of qualitative factors such as a domicile or family present in Singapore. A company is a tax resident in Singapore if control and management of its business are exercised in Singapore. The place of incorporation is irrelevant for the purpose of determining tax residency.

The major advantage of being considered a tax resident of Singapore is the ability to enjoy tax treaty benefits accorded in more than 70 comprehensive double taxation agreements that Singapore has with various countries around the world. Typical tax treaty benefits include reduction of withholding tax rates in respect of dividend, interest and royalty payments to non-residents and the ability to avoid double taxation on cross-border income via the claim for total tax exemption or foreign tax credit relief. Also, certain tax-exemption claims are only accorded to Singapore tax residents such as the exemption of specified foreign-sourced income (e.g. dividends) received in Singapore if the stipulated conditions are met.

Outside the Big 4,the choice is obvious.

8 Wilkie Road, #03-08, Wilkie Edge, Singapore 228095T +65 6533 7600 F +65 6538 [email protected] www.RSMSingapore.sg

RSM in Singapore is a member of RSM International, the world’s 6th largest network of independent public accounting firms providing assurance, tax and business advisory services, with a global reach of over 760 o�ces in 120 countries. We serve internationally active businesses and companies aspiring to go global.

In addition, we provide business solutions for our clients’ non-core yet important areas of their business so that they can focus on the core revenue-generating aspects. Through our business solutions division, under our Stone Forest group of companies, we continue to support our clients in their expansion plans in Singapore and globally.

We are the largest accounting, business advisory and solutions group outside the Big 4 in Singapore, with a total sta� strength of over 950 in Singapore and 320 in Shanghai, Beijing, Suzhou, Shenzhen, Chengdu and Hangzhou.

Our vertical industry units and country desks:

∙ China Practice∙ Financial Services∙ Food & Beverage∙ Healthcare∙ Industrial Practice∙ Logistics & Transportation∙ Minerals, Oil & Gas

∙ NPO Practice∙ Private Equity Group∙ Professional & Business Services∙ Real Estate & Construction∙ Retail∙ Indonesia Desk∙ Japan Desk

As advisors to growing businesses, we help clients:

∙ Maximise profits ∙ Internationalise∙ Enhance business value





Individual Tax and Corporate Tax

Individual TaxIndividuals, regardless of their resident status, are subject to individual income tax on income accruing in or derived from Singapore. On the other hand, individuals’ foreign-sourced incomes are only taxable if the incomes are received in Singapore by residents through a partnership in Singapore.

Business IncomeProfits of trades, businesses or professions operating through sole proprietorships, partnerships or limited liability partnerships are not subject to tax at the entity level, but are subject to tax in the hands of the sole proprietors or partners. If the sole proprietor or partner is an individual, the profits from the sole proprietorship, partnership or limited liability partnership will be subject to personal income tax, but if the business structure takes the form of a limited liability company, the profits will be subject to corporate income tax.

Expense Deductions Revenue expenses that are wholly and exclusively incurred in the production of income are generally tax deductible, unless specifically disallowed under the Singapore Income Tax Act (“SITA”). Capital allowances on qualifying expenditures incurred on fixed assets used for the purposes of the taxpayer’s trade, business or profession may be claimed.

Losses Transferred and Carried Back Individuals can transfer their unutilised trade losses, capital allowances and donations as well as rental losses to offset against their spouses’ taxable income for the year in question. The current year’s unutilised trade losses and capital allowances may also be carried back by the individuals to offset against their own income for the immediate preceding year of assessment, up to a maximum of S$100,000.

Notwithstanding, it was announced in Budget 2014 that to simplify the individual income tax system, married couples can no longer transfer qualifying tax losses between each other (including under the loss carry-back scheme) with effect from YA 2016. As a transitional concession, qualifying tax losses incurred by a married couple in and before YA 2015 will still be allowed for inter-spousal transfers up till YA 2017, subject to existing rules.

Employment Income Employment income is deemed sourced in Singapore if the employment is exercised in Singapore.

Salaries, wages, leave pay, commissions, bonus, gratuity, pension, perquisites or allowances paid or granted, whether in money or otherwise, in respect of the employment exercised in Singapore, are generally subject to tax in Singapore.

Benefits-in-kind (i.e. benefits provided in lieu of cash) provided by employers are taxable in the hands of the employees unless they are specifically exempt from tax or covered by the administrative concessions granted by the IRAS. Fringe benefits such as education allowance, provision of accommodation, home leave passage and cars, long-service awards, and overseas pension contributions are generally taxable.

In respect of housing benefits, if a cash allowance is paid to the employee to meet his housing cost, the full allowance is considered a taxable income. But if the employer provides a furnished accommodation to the employee, the assessable benefit is computed based on certain

prescribed formulas/rates. With effect from the year of assessment 2015, the housing benefits provided in a place of residence or serviced apartments not within a hotel building will generally be taxed based on the annual value of the rented property.

An employee can claim certain revenue expenses ─ such as subscriptions to a professional body as well as travelling and entertainment expenses ─ that are incurred in the course of exercising his employment for tax deduction against his employment income. The onus is on the employee to prove to the satisfaction of the IRAS that the expenses in question are necessarily incurred in the discharge of his employment duties.

Not Ordinarily Resident (NOR) Scheme An individual may qualify for the NOR scheme for any year of assessment if the following conditions are satisfied: • The individual is a tax resident of Singapore for that year of

assessment, and• The individual was not a tax resident of Singapore for the three years

of assessment before that year of assessment.

Once the application is approved, the qualifying individual will be granted NOR status for five consecutive years of assessment with the following benefits, subject to certain conditions and capping limits:• Taxability of employment income based on time apportionment

of Singapore employment income by reference to time spent in Singapore on business, and/or

• Tax exemption of employer’s contributions to non-mandatory overseas social security schemes or pension funds (available only to non-Singapore citizens/non-Singapore permanent residents).

Personal Reliefs Resident individuals are entitled to claim personal reliefs such as the following if certain prescribed conditions are met. However, with effect from year of assessment 2018, the total amount of personal income tax reliefs will be capped at S$80,000 per year of assessment.• Earned income relief ranging from S$1,000 to S$8,000 depending on

the age of the taxpayer.• Spouse relief of S$2,000 if the spouse was living and supported

by the taxpayer and the spouse’s annual income did not exceed S$4,000 in the previous year.

• Child relief of S$4,000 per child if the unmarried child maintained by the taxpayer is below 16 years of age or studying full time and did not have an annual income of more than S$4,000 in the previous year.

• Relief on employee’s compulsory contributions to the Singapore Central Provident Fund.

• Life insurance relief on annual insurance premiums paid for life assurance policies. (The total quantum of the individual’s employee CPF contribution and life insurance relief should not exceed S$5,000.)

• Course fee relief of up to S$5,500.• Foreign maid levy relief of twice the amount of the domestic foreign

worker levy paid in the previous year on one foreign domestic worker. (Applicable only to married female taxpayer / separated, divorced or widowed female taxpayer who had children living with her and on whom she could claim child relief.)

Central Provident Fund (CPF) Contributions Contributions to the CPF are mandatory for employees who are either citizens or permanent residents of Singapore.

In most cases, the employee’s CPF contribution is based on 5% to 20% of his gross emolument depending on his age. The employer is also required to contribute a corresponding 7.5% to 17% to the employee’s CPF account. The monthly ordinary wage ceiling for CPF contributions is S$5,000.

With effect from 1 January 2016, the monthly CPF salary ceiling has been increased from S$5,000 to S$6,000. Both the employee and employer are entitled to claim tax deduction for the contributions made so long as the contributions are within statutory limits.

Employee Share Option Plans Any gains or benefits arising from employee share options in relation to Singapore employment are taxable when the share options are exercised. The taxable gain is generally the difference between the open market price of the share on the date of exercise (or date when the selling restriction is lifted, if applicable) and the price paid by the employee for the shares (i.e. exercise price). Expatriates with unexercised share options who are ceasing employment or leaving Singapore permanently are subject to deemed exercise rules under certain circumstances.

Taxation of Personal Investment Income Singapore-sourced investment income, such as rental and loan interest, is generally taxable. However, interest on deposits with approved banks or licensed finance companies in Singapore that is derived on or after 1 January 2005 is tax-exempt. Dividends received from Singapore resident companies are also tax-exempt in Singapore.

All foreign-sourced incomes received in Singapore are not subject to tax in Singapore, unless the income is received by resident individuals through a partnership in Singapore.

Tax Resident versus Non-tax Resident Individual Comparison

Tax Resident Non-tax Resident

Income tax ratesProgressive tax rates ranging from 0% to 20%(0% to 22% with effect from year of assessment 2017)

15% or progressive resident rates (whichever results in the higher tax amount) for employment income (except for board directors’ fees / remuneration)

Personal reliefs and rebate Applicable Not applicable

Singapore-sourced employment income Taxable

Not taxable if arising from short-term employment in Singapore that does not exceed 60 days in the basis period

Foreign-sourced income received in Singapore

Tax-exempt

Special rules available for foreign-sourced income received through partnerships in Singapore

Tax-exempt

Board directors’ fees / remuneration

Progressive tax rates ranging from 0% to 20%(0% to 22% with effect from year of assessment 2017)

20% (22% with effect from year of assessment 2017)

Tax treaty benefits Yes No

Filing of Individual Income Tax Returns Personal income tax returns must be submitted by individuals to the IRAS by April 15 of each tax year. For example, employment income earned by an individual for the calendar year ending 31 December 2015 is to be reported in the year of assessment 2016 income tax return, which will be due for filing on 15 April 2016.

Married couples are required to file their income tax returns separately.

Payment of Income Tax Generally, there is no requirement for employers to withhold income taxes from an individual employee’s monthly salary.

Once an individual files his income tax return, the IRAS will raise a notice of assessment to the individual to collect the amount of tax due. The tax due in the notice of assessment must be paid within a month from

the date of the notice of assessment, notwithstanding any objection. Taxpayers may request for the amount of tax due to be settled by monthly instalments (up to a maximum of 12 instalments), subject to IRAS’s approval.

If the taxpayer does not agree with the tax assessed in the notice of assessment, the taxpayer may lodge a notice of objection with the IRAS within 30 days from the date of the notice of assessment.

Cessation of Employment in Singapore and Departure from Singapore

Non-Singapore citizens ceasing employment in Singapore or departing Singapore for a period of more than three months (unless the employee is required in the course of his employment to leave Singapore at frequent intervals) are subject to tax clearance. A written notice is to be lodged to the IRAS about the employee’s cessation/departure and salary withholding has to be done by the employer until tax clearance is issued





by the IRAS. The notice must be made at least one month before the cessation of employment/departure of the employee.

Table of Individual Income Tax Rates Resident individual personal income tax rates are as follows:

Chargeable Income (S$) Tax Rate (%) Tax Payable (S$)

On the first 20,000On the next 10,000

-2

-200


-3.50

200350


-7

5502,800


-11.5

3,3504,600


-15

7,9506,000

On the first 160,000On the next 40,000*

-17

13,950 6,800

On the first 200,000*On the next 120,000*

-18

20,75021,600

On the first 320,000*Excess over 320,000*

-20

42,350-

*The marginal tax rates will be increased after the S$160,000 chargeable income bracket, ranging from 18% to 22% with effect from year of assessment 2017.

Non-resident individuals deriving employment income (apart from board directors’ fees and remuneration) are taxed at a flat rate of 15% or the resident rates above, whichever gives rise to a higher tax payable. Non-resident individuals deriving directors’ fees and remuneration and other sources of income are taxed at 20%, and this will be raised to 22% from year of assessment 2017.

Corporate TaxIncome of a company (whether tax resident or not) that is accrued in or derived from Singapore or received in Singapore from outside Singapore is subject to corporate income tax, unless the income is specifically exempt from tax under the SITA.

Corporate Income Tax RateThe prevailing corporate income tax rate is 17% with a partial tax exemption on normal chargeable income (excluding Singapore franked dividends) of up to S$300,000 as follows:• 75% exemption on the first S$10,000 of normal chargeable income;

and• 50% exemption on the next S$290,000 of normal chargeable income.

Accordingly, the effective tax rate on the first S$300,000 of normal chargeable income is close to 8%. The balance of chargeable income in excess of S$300,000 would then be fully taxable at the prevailing rate of 17%.

Start-up CompaniesSubject to the following conditions, resident start-up companies (excluding investment holding companies and property development companies incorporated after 25 February 2013) are granted tax exemption on normal chargeable income (excluding Singapore franked dividends) of up to S$300,000 for their first three consecutive years of assessment upon incorporation as follows:• 100% exemption on the first S$100,000 of normal chargeable

income; and

• 50% exemption on the next S$200,000 of normal chargeable income. The effective tax rate on the first S$300,000 of chargeable income is therefore close to 6%.

The prescribed conditions for the tax exemption scheme are as follows:• The company must be incorporated in Singapore;• The company must be a tax resident in Singapore for that year of

assessment; and• The company has no more than 20 shareholders throughout the

basis period for that year of assessment where: a. all the shareholders are individuals beneficially and directly

holding the shares in their own names; or b. at least one shareholder is an individual beneficially and directly

holding at least 10% of the issued ordinary shares of the company.

Corporate Income Tax Rebate All companies (regardless of their tax residency) are entitled to a 30% corporate income tax rebate for each year of assessment from 2013 to 2015 (capped at S$30,000), and a 50% corporate income tax rebate for each year of assessment from 2016 to 2017 (capped at S$20,000). The rebate does not apply to income of a non-resident company that is subject to final withholding tax.

Expense Deductions and Capital Allowances Claim Revenue expenses that are wholly and exclusively incurred in the production of income are generally tax deductible, unless specifically disallowed for tax.

Book depreciation charges are not deductible for tax purposes. Capital allowances are instead granted on qualifying capital expenditures incurred on fixed assets used for the purposes of the taxpayer’s trade, business or profession. Qualifying capital expenditure incurred on small-value items and certain specific fixed assets (e.g. computer and computer-related equipment) may be fully written off in the year incurred, while other qualifying fixed assets are generally written off on a straight-line basis over three years.

The writing down allowance for qualifying intellectual property rights is granted over five years on a straight line basis up to year of assessment 2016, and election can be made for a writing-down period over five, 10 or 15 years for qualifying acquisitions made within the basis periods for years of assessment 2017 to 2020. Land intensification allowance (LIA) may be claimed on qualifying expenditure incurred for the construction of a qualifying building or structure, if the said expenditure is incurred on or after 23 February 2010 up to the completion date of the construction or renovation/extension of the approved LIA building or structure, subject to conditions.

Balancing adjustments must be made when the fixed assets are sold or under certain circumstances, such as when the qualifying asset ceases to belong to the taxpayer or permanently ceases to be used for the taxpayer’s trade, business or profession.

Tax Exemption on Specific Foreign-sourced Income A Singapore-resident company may enjoy tax exemption for its foreign-sourced dividends, foreign-branch profits and foreign-sourced service income (i.e. income where the services are rendered in the course of the taxpayer’s trade, business or profession through a fixed place of operation in a foreign jurisdiction) received in Singapore if the following conditions are met: • In the year when the income is received in Singapore, the headline

tax rate of the foreign jurisdiction from which the income is received is not less than 15%;

• The income is subject to tax in the foreign jurisdiction; and• The IRAS is satisfied that the tax exemption would be beneficial to

the Singapore-resident company.

Tax Exemption on Gains of Equity Investment DisposalsThe Singapore government has introduced a “safe-harbour” rule whereby gains derived from equity disposals during the period 1 June 2012 to 31 May 2022 by a qualifying divesting company will not be taxed if the following conditions are met:• The shareholding interest in the investee company is at least 20%; • The shares in question had been held for at least 24 months before

their disposals; and• The gains did not arise from a disposal of shares of a preferential

nature or shares with redeemable or convertible features, or shares in an unlisted investee company that is in the business of trading or holding Singapore immoveable properties (other than the business of property development).

• The gains did not arise from a disposal of shares where the gains or profits of which are included as part of an insurance company’s income, or shares by a partnership, limited partnership or limited liability partnership where one or more of the partners is a company or are companies.

Foreign Tax CreditA Singapore-resident company may be entitled to claim foreign tax credit in respect of the foreign tax suffered on the foreign-sourced income received and subject to tax in Singapore. The computation of the foreign tax credit is on a source-by-source and country-by-country basis.

With effect from the year of assessment 2012, a Singapore-resident taxpayer, subject to conditions, can elect for the foreign tax credit pooling system whereby the foreign taxes paid (including any underlying tax, where applicable) on any items of the foreign-sourced income will be “pooled” together. The amount of foreign tax credit to be granted will be computed on an aggregate basis, rather than a source-by-source and country-by-country basis. The foreign tax credit is capped at the lower of the aggregate foreign taxes paid on all the streams of foreign income and the pooled Singapore tax payable on the aggregate foreign income.

Unabsorbed Capital Allowances, Trade Losses and Donations

Companies may carry forward their unabsorbed capital allowances, trade losses and donations for offset against future taxable income provided at least 50% of their ultimate shareholders and their respective shareholdings are the same as at certain relevant comparison dates. For the utilisation of unabsorbed capital allowances, there must also be no change in trade from which the allowances arose.

Unabsorbed donations can only be carried forward for up to five years for offset against the taxpayer’s future taxable income.

Companies may also choose to carry back their current year’s unabsorbed capital allowances and trade losses of up to S$100,000 to offset against the assessable income of the immediate preceding year of assessment.

Group Relief Under the group relief system, a company within a group (the transferor) is allowed to transfer its current-year unabsorbed trade losses, capital allowances and donations for offset against the current year’s assessable income of another company (the claimant) within the same group.

To qualify for the group relief, both the transferor and claimant must be Singapore-incorporated companies, belong to the same

group of companies on the last day of the basis period and have the same financial year end. The transferor and claimant companies are considered members of the same group if at least 75% of the total number of issued ordinary shares in one company are beneficially held, directly or indirectly, by the other, or at least 75% of the total number of issued ordinary shares in each of the two companies are beneficially held, directly or indirectly, by a third Singapore-incorporated company.

Filing of Estimated Chargeable Income and Corporate Income Tax Return

Every company has to submit an estimated chargeable income (ECI) to the IRAS within three months from the end of the company’s financial year. Companies must also submit their corporate income tax returns to the IRAS by November 30 each tax year.

To illustrate, a company with a financial year ended 31 December 2015 must file its year of assessment 2016 ECI and corporate income tax return to the IRAS by 31 March 2016 and 30 November 2016 respectively.

Payment of Corporate Income Tax and Objection to Assessments Raised

Upon receipt of the notice of assessment from the IRAS, the tax due in the notice of assessment must be paid within a month from the date of the notice of assessment unless payment by instalments has been arranged, notwithstanding any objection. A maximum of 10 instalments may be obtained to settle the tax payable, subject to the IRAS’s approval.

If the taxpayer does not agree with the tax imposed in the notice of assessment, the taxpayer may lodge a notice of objection with the IRAS within 30 days from the date of the notice of assessment. With effect from 1 January 2014, the IRAS, as an administrative concession, has extended the deadline to file a notice of objection from 30 days to two months from the date of the notice of assessment.





Productivity and Innovation Credit (PIC)The PIC scheme was introduced to encourage businesses to invest in innovation and increase productivity. It applies to qualifying expenditures incurred for the years of assessment 2011 to 2018, and will expire thereafter. PIC will not be available from year of assessment 2019.

Under the scheme, businesses can enjoy 400% tax deductions/allowances for qualifying spending of up to S$400,000 in each of the following qualifying activities for each year of assessment from 2011 to 2018:

QualifyingActivities

Acquisition & In-licensingof

Intellectual PropertyRights

Registration of IntellectualProperty Rights

Research & Development

Acquisition or Leasing ofInformation Technology

& AutomationEquipment

Training of Employees

Investments in DesignProjects Approved by

DesignSingapore Council

In lieu of the tax deduction/allowance benefits, businesses have the option to convert up to S$100,000 of their total qualifying expenditure (subject to a minimum expenditure of S$400) in all six qualifying activities into a non-taxable cash payout for each year of assessment in question. The cash payout will be lowered from 60% to 40% for qualifying expenditure incurred from 1 August 2016.

PIC+ SchemeThe PIC+ scheme is available to support qualifying small and medium enterprises that make more substantive investments to transform their businesses and incur PIC qualifying expenditures beyond the PIC combined cap of S$1,200,000 applicable for the relevant three years of assessments from year of assessment 2013 to 2015, and year of assessment 2016 to 2018 respectively.

Under the PIC+ scheme, from year of assessment 2015 to 2018, qualifying small and medium enterprises that invest in the six qualifying activities under the PIC scheme will continue to enjoy 400% tax deductions/allowances on an additional S$200,000 in expenditure for each qualifying activity per year of assessment. This will bring the expenditure cap of qualifying small and medium enterprises from S$400,000 to S$600,000 per qualifying activity per year of assessment.

Dividend Payment Dividend payments made to non-resident shareholders are not subject to Singapore withholding tax. Furthermore, dividends paid by Singapore resident companies are tax-exempt in Singapore in the hands of the shareholders.

Withholding Tax There is a requirement to withhold tax when certain specified payments, such as interest, royalty and service fees (in respect of services performed in Singapore), are made to non-Singapore tax residents. The domestic withholding tax rates are generally 15%, 10% and 17% for interest, royalty and service fee payments respectively. The rates may be reduced under the provisions of existing tax treaties between Singapore and the relevant countries.

Starting from 1 July 2012, the tax withheld must be paid to the IRAS by the 15th day of the second month following the date of payment to the non-Singapore tax resident. Late-payment penalties will be imposed if the tax withheld is not remitted to the IRAS on time.

Goods and Services TaxGoods and services tax (GST) is a broad-based tax on local consumption and chargeable on goods and services sold in Singapore as well as goods imported into Singapore.

A supply of goods or services made in Singapore is subject to GST at the prevailing standard rate of 7% unless the supply is zero-rated (i.e. GST at 0%) or exempt under the GST Act. Standard-rated supplies comprise sale of goods or services supplied in Singapore, while the provision of international services and exports is mainly zero-rated. Exempt supplies include the sale and lease of residential properties as well as the supply of financial services and investment in precious metals.

A person must register for GST if his taxable supplies for the last 12 months exceeded S$1 million or if he expects to make taxable supplies exceeding S$1 million in the next 12 months. However, a person may apply for GST registration on a voluntary basis even if his taxable supplies are not expected to exceed S$1 million.

Notwithstanding that there is an obligation to register for GST, the person may apply for exemption from GST registration if he is making wholly or substantially zero-rated supplies.

A GST-registered person is able to claim the GST incurred on his business expenses as an input tax credit, subject to conditions.

GST-registered traders may apply for certain GST schemes (such as Major Exporter Scheme, Group Registration) to help reduce GST compliance costs and/or mitigate cash flow problems.

Stamp DutyStamp duty is payable only in relation to the acquisition or disposal of property, lease/tenancy of property and transfer of shares/stocks. Stamp duty exemption/relief is available on certain transactions such as corporate restructuring and mergers, subject to conditions.

Property TaxPayable by all property owners, property tax is a tax on immoveable properties, calculated based on a percentage of the annual value (“AV”) of the properties.

Property tax is levied based on 10% of the annual value of the immoveable commercial or industrial property. For owner-occupied residential property, the property tax rate is on a progressive basis depending on the annual value of the property. The property tax rates for owner-occupied residential properties are as follows:

Annual Value (S$)

Tax Rates from 1

January 2014 (%)

Tax Rates from 1

January 2015 (%)

On the first 8,000 0 0

On the next 47,000 4 4




On the next 15,000 9 10

On the next 15,000 11 12

On the next 15,000 13 14

AV in excess of 130,000 15 16

Property tax rates for non-owner-occupied residential properties are as follows:

Annual Value (S$)

Tax Rates from 1

January 2014 (%)

Tax Rates from 1

January 2015 (%)

On the first 30,000 10 10

On the next 15,000 11 12

On the next 15,000 13 14

On the next 15,000 15 16

On the next 15,000 17 18

AV in excess of 90,000 19 20

Customs and Excise DutiesIn Singapore, customs and excise duties are imposed principally on intoxicating liquors, tobacco products, motor vehicles and petroleum products based on certain prescribed rates.

Estate Duty and Gift TaxThere are no estate duties (for deaths after 15 February 2008) or gift taxes in Singapore.

Exchange Control There are generally no exchange control restrictions in Singapore.

Tax IncentivesThe Singapore government offers multinational companies and investors a variety of tax incentives in order to attract investments into Singapore. The incentives may come in the form of income tax exemption or taxation at certain concessionary rates, usually at 5% or 10% for a specified number of years.

Applications for tax incentives are subject to the approval of the relevant government bodies. The success of applications greatly depends on the merits of each case, the potential economic spin-offs for Singapore and the extent of investors’ commitments in terms of total business

spending, headcount (quality of people hired) and fixed asset investment (if applicable).

Some common tax incentives currently available are listed below.

Financial Sector IncentivesIn order to encourage the development of high-growth and high value-add financial activities in Singapore, the Monetary Authority of Singapore and/or the IRAS has been granting various tax incentives for the financial services sector.

For example, income derived from either a Singapore or offshore fund could potentially be exempt from tax on all its sources of income and gains if such a fund is managed by a Singapore resident fund manager, subject to conditions. Singapore-based fund managers could also secure a concessionary tax rate of 10% (compared with the usual tax rate of 17%), subject to conditions, for qualifying fee income earned from the management of qualifying funds.

There are also other financial sector incentives covering the debt capital market, equity market and derivatives market. There are also various conditions to comply with and qualifying income could be taxed at a concessionary rate of between 5% and 12%.

Marine Sector IncentivesSingapore has a suite of tax incentives for the maritime sector. The Maritime Sector Incentive (MSI) Scheme offers various awards such as the MSI-Approved International Shipping Enterprise (MSI-AIS) Award, which is meant for international shipping companies with established worldwide networks, strong track records, demonstrable business plans and a commitment to expand their shipping operations in Singapore. Subject to conditions, an MSI-AIS company will enjoy tax exemption on qualifying shipping income for either:• a ten-year renewable period; or• a five-year non-renewable period, with the option of graduating to

the ten-year renewable award at the end of the five-year period.

Global Trader ProgrammeThe Global Trader Programme is granted to well-established international players in their industry with good track records in international trading, procurement, distribution and transportation of qualifying commodities and products.

Depending on the anticipated turnover and business spending of the applicant, as well as the number of qualified staff it will employ, an approved global trading company could enjoy a concessionary tax rate of 5% or 10% on its qualifying offshore trading income for a period of five years.

International Agreements

Double Taxation Agreement A double taxation agreement (DTA) signed between Singapore and another country serves to relieve double taxation of income earned in one country by a resident of the other country. The DTA specifies the taxing rights between Singapore and the treaty country on certain cross-border income and may also provide for reduction or exemption of tax.

Only Singapore tax residents and tax residents of the treaty country can enjoy DTA benefits. Singapore has a wide tax treaty network that, as at March 2016, involves more than 70 countries including Japan, China,



Malaysia, Indonesia, and the United Kingdom.

Investment Guarantee AgreementAn investment guarantee agreement (IGA) is designed to promote greater investment flows between two countries by providing a legal framework that clearly sets out investment norms and protection when investing in the other country. The usual provisions of an IGA include the principle of fair and equitable treatment, the principle of non-discrimination, compensation in the event of expropriation, free transfer of funds, and an investor-state dispute settlement mechanism.

As at January 2016, Singapore has 42 effective IGAs with locations such as ASEAN, China, France, and the United States.

Free Trade AgreementA Free Trade Agreement (FTA) is a legally binding agreement between two or more countries to reduce or eliminate trade barriers and facilitate cross-border movement of goods and services by eliminating or reducing import tariff rates, providing preferential access to services sectors, easing investment rules, improving intellectual property regulations, and opening government procurement opportunities. As at March 2016, Singapore has 20 regional and bilateral FTAs with 31 trading partners.

Note: All information contained in this article is correct as of 1 May 2016. Readers should not rely solely on this article for their tax planning or fulfilment of regulatory obligations within or outside Singapore. Readers should consult their own professional tax advisors who are familiar with their specific situation for advice before making any decisions on their investments.

Contributed by:RSM

Business Advisors to Growing Businesses

FINANCIALREPORTING AND

AUDITING

SINGAPORE BUSINESS FEDERATIONFINANCIAL REPORTING AND AUDITING

SINGAPORE BUSINESS FEDERATIONFINANCIAL REPORTING AND AUDITING



The Accounting ProfessionWith more than 30,000 members, the Institute of Singapore Chartered Accountants (ISCA) is the national body representing the accounting profession in Singapore. ISCA was officially appointed as the administrator of the Singapore Qualification Programme (Singapore QP) on 1 April 2013 by the Singapore Accountancy Commission. Candidates who successfully complete the Singapore QP will be conferred the globally recognised Chartered Accountant of Singapore ─ CA (Singapore) ─ designation.

Regulation of the Accounting ProfessionSingapore’s Accounting and Corporate Regulatory Authority (ACRA) administers the Companies Act and Accountants Act. Pursuant to this, it monitors directors’ compliance with approved accounting standards and requirements in connection with the preparation and filing of statutory financial statements required under the Companies Act. ACRA also ensures that public accountants, who perform statutory audits, audit these financial statements in compliance with relevant auditing and quality control standards.

The Registrar of Public Accountants of ACRA licenses and registers accountants who wish to practise as public accountants. ACRA also handles practice monitoring and disciplinary matters, as well as regulates the professional conduct of public accountants.

Accounting RecordsAll companies incorporated under the Companies Act must keep books of accounts that sufficiently explain the transactions and financial position of the company. The records must also enable true and fair financial statements to be prepared from time to time. Companies can choose their financial year end.

The books may be kept either at the company’s registered office or at another place that is considered by the directors to be appropriate. If the books are kept outside Singapore, sufficient records must be maintained in Singapore to facilitate the preparation and/or audit of financial statements that accurately reflect the company’s financial position.

The accounting records must be kept for a minimum of five years from the end of the financial year in which the transactions or operations to which the records relate were completed.

Financial Reporting StandardsSingapore’s Financial Reporting Standards (FRS) are prescribed and issued by the Accounting Standards Council (ASC), which issues accounting standards applicable to both the corporate and non-corporate sectors.

While the ASC tracks closely the introduction of new International Financial Reporting Standards (IFRS) for possible application in Singapore, it will also take into account the local economic and business circumstances and context, as well as the entity to which the accounting standards would apply.

The FRS issued by the ASC are closely modelled on as well as largely aligned and compliant with the IFRS, except for certain modifications to the interpretations of financial reporting standards, effective dates and transitional provisions.

Compliance with FRS is a statutory requirement whereby any non-compliance amounts to a breach of the Companies Act by the directors.

Public-listed companies are subject to financial statement and disclosure requirements as prescribed by the Singapore Exchange (SGX).

The ASC, in November 2010, adopted the IFRS for SMEs as the Singapore Financial Reporting Standard for Small Entities (SFRS for Small Entities). This is intended to provide an alternative financial reporting framework for small entities. The SFRS for Small Entities is effective for financial reporting periods beginning on or after 1 January 2011.

The SFRS for Small Entities adopts similar applicability criteria under the IFRS for SMEs for identifying a small entity. A small entity is one that:• Does not have public accountability; and• Publishes general purpose financial statements for external users.

However, the SFRS for Small Entities introduces an additional element to the definition above. To be defined as a small entity, the business must also satisfy at least two of the three following quantitative criteria:• Total annual revenue of not more than S$10 million;• Total gross assets of not more than S$10 million; and• Total number of employees does not exceed 50.

Companies Act RequirementsThe Companies Act requires that an audited set of a company’s financial statements, prepared no more than six months before every Annual General Meeting (AGM), must be distributed to all shareholders and presented at the meeting. Generally, if a company incorporated in Singapore has one or more subsidiaries, it must prepare consolidated financial statements unless it meets certain criteria as provided for in FRS 110 Consolidated Financial Statements.

A complete set of financial statements comprises:• a statement of financial position;• a statement of profit or loss and other comprehensive income;• a statement of changes in equity;• a cash flow statement;• explanatory notes; and• other information where required under FRS 1 Presentation of

Financial Statements

The financial statements must be accompanied by the directors’ and auditors’ reports. The directors must also declare that the financial statements show a true and fair view and that it is reasonable to believe the company can reasonably pay its debts as they become due.

A branch of a foreign company has to e-file its audited financial

FINANCIALREPORTING AND

AUDITING

statements, as well as the audited financial statements of the foreign company, with ACRA within two months from the AGM date of the foreign company.

Appointing AuditorsThe Companies Act requires every company, including branches of foreign companies, to appoint one or more auditors qualified for appointment under the Accountants Act to report on the company’s financial statements. This requirement does not apply to those exempted in accordance with the provisions in the Companies Act (see Audit Exemption below).

The auditor(s) has to be appointed within three months of the company’s incorporation and is responsible for ascertaining whether proper books of accounts have been kept and whether the financial statements agree with the company’s records. Following this, the auditor(s) will report to shareholders at the AGM on the trueness and fairness of the financial statements.

Audit ExemptionPrior to 2015, the following companies that meet specific provisions in the Companies Act may be exempted from audits of their financial statements. However, they are still required to prepare financial statements (and consolidated financial statements where applicable) that comply with the Companies Act and FRS.

Small Exempt Private CompaniesAn Exempt Private Company (EPC) with not more than S$5 million in revenue for a financial year is exempted from appointing auditors and audit requirements. An EPC is a private company where there is no beneficial interest in its shares held directly or indirectly by any corporation and that does not have more than 20 members. Revenue is defined according to the statutory accounting standards, i.e. the FRS.

Dormant CompaniesA dormant company is exempted from appointing auditors and audit requirements if it has been dormant either (a) from the time of its formation or (b) since the end of the previous financial year. A company is considered dormant during a period in which no accounting transaction occurs and the company ceases to be dormant when such a transaction occurs. For this purpose, transactions arising from the following are disregarded:

• Taking of shares in the company by a subscriber to the memorandum• Appointment of company secretary• Appointment of auditor• Maintenance of a registered office• Keeping of registers and books• Fees, fines or default penalties paid to ACRA

Subsequent to the Companies (Amendment) Bill passed in Parliament on 8 October 2014, a new concept of “small company”/“small group” was introduced. Private companies (including all entities within the group) that meet any 2 of the following 3 criteria for the immediate past 2 consecutive financial years (“FY”) may qualify for audit exemption:

(a) Total revenue for each FY does not exceed S$10 million;(b) Total assets at the end of each FY does not exceed S$10 million; or(c) Total employees at the end of each FY is not more than 50.

Contributed by:RSM

Business Advisors to Growing Businesses

SINGAPORE BUSINESS FEDERATIONBANKING


BANKINGIN SINGAPORE

Singapore’s Financial LandscapeAs an international finance center, Singapore has been largely regarded as a strong financial hub across the world. With a strategic location, Singapore also offers effective regulatory environment, highly skilled and cosmopolitan pool of finance professionals. On a 2015 report on the monetary authority of Singapore, Singapore’s economy is projected to expand at a modest pace in 2016 with the uplift from the former US economy tempered by weaker growth prospects in the region.

Finance and Insurance sector formed 12% of Singapore’s GDP in 2015 with banking holding more than 40% of the sector. The sector has also experienced growth of 5.3% in the same year.

Singapore has consecutively achieved the position of easiest place to do business for a 10th consecutive year in the World Bank’s annual doing business report. The ranking was judged on 11 criteria such as starting a business, getting credit, paying taxes and trading across borders.

Singapore has also been named the No.1 City with best investment potential in the 2015 BERI report after coming in second for 16 consecutive years.

Source: http://mas.gov.sg/

Types of BanksAs updated on 22 March 2016, Singapore has a total number of 124 commercial banks. The number consists of 5 local banks and 119 foreign banks. Foreign banks are further classified into 3 categories being foreign full bank, wholesale banks and offshore banks.

BANKINGIN SINGAPORE

Foreign Full banksThese banks provide the whole range of banking business permitted under the Banking Act. Foreign full banks with Qualifying Full Bank (“QFB”) privileges may operate a total of 25 locations and also utilise other benefits.

Wholesale BanksWholesale banks engage in the same range of banking business as full banks, except that they do not carry out Singapore Dollar retail banking activities. They operate within the Guidelines for Operations of Wholesale Banks issued by MAS.

Offshore BanksOffshore banks can engage in the same activities as full and wholesale banks for businesses transacted through their Asian Currency Units (ACUs). The ACU is an accounting unit, which the banks use to book all their foreign currency transactions conducted in the Asian Dollar Market (ADM). The banks’ Singapore dollar transactions are separately booked in the Domestic Banking Unit (DBU). They operate within the Guidelines for Offshore Banks issued by MAS.

Source: http://mas.gov.sg/





Top 20 Commercial banks in Singapore

Ranking Bank Number of Employees 2015 Country

1 Citibank 10,000 US

1 DBS Bank 10,000 Singapore

3 United Overseas Bank 8,000 Singapore

4 Standard Chartered Bank 7,000 UK

5 Overseas-China Banking Corp 6,600 China

6 HongKong and Shanghai Banking Corporation 3,077 China

7 J.P.Morgan Chase & Co.* 3,000 US

8 Australia & New Zealand Banking Group* 2,300 Australia

9 BNP Paribas 2,000 France

10 Malayan Banking (Maybank Singapore) 1,800 Malaysia

11 CIMB Bank 1,100 Malaysia

12 Bank of China* 580 China

13 Mizuho Bank* 500 Japan

14 RHB Bank* 500 Malaysia

15 Credit Agricole Corporate and Investment Bank 248 France

16 Industrial and Commercial Bank of China* 180 China

17 Statebank of India 144 India

18 ICICI Bank 102 India

19 Bank of India 79 India

20 Indian Bank 64 India

20 UCO Bank* 64 India

*Obtained from company websites, media reports, annual reports and/or previous data.

Source: http://sbr.com.sg/

How to set up a corporate bank account in SingaporeAlmost all major banks in the world have their presence in Singapore. Banks are generally happy to open a corporate bank account for any company whether Singapore or Overseas companies. Majority of the banks in Singapore require account signatories and majority of the directors to be physically present in Singapore for paperwork signing at time of opening the corporate bank account.

Typically banks would require the following documents. As this is a general guide, the requirements and processes may differ by banks or case.

DocumentsRequirements

Completed Corporate Account Opening Forms (signed by authorized signatories as per the board resolution)

Boards of Directors Resolution sanctioning the opening of the account and the signatories to the account (to be prepared by your company secretary)

Certified True Copy of Resolution sanctioning the opening of the account and the signatories to the account (to be prepared by your company secretary)

Certified True Copy of Resolution sanctioning the opening of the account and the signatories to the account (most of the banks have their own format and you just need to sign it)

Certified True Copy of Company’s Business Profile from Company Registrar (Must be certified by the company secretary or one of the directors)

Certified True Copy of Company’s Memorandum and Articles of Association (MAA) (must be certified by the company secretary or one of the directors)

Certified True Copies of Passport (or Singapore IC) and Residential Address Proof of the Directors, Signatories, and Ultimate Beneficiary Owners. If you are in Singapore, just bring the originals and the bank will make a copy.

Source: http://www.guidemesingapore.com/

Personal BankingSingapore has one of the strongest banking systems in the world with total assets of more than S$400 Billion. Singapore has strict banking secrecy laws, no capital gains tax and tax exemption on interest earned. Depending on your personal banking needs, you have the option of opening the following:

3 Main categories of Personal Bank Account

Retail Bank AccountMost banks offer the following type of consumer bank accounts for personal needs.

Retail Bank Account Brokerage Account Private Bank Account

Current account • Non-interest bearing• Chequing account

Savings account • Interest earning, non-chequing facility account• Issue of passbook

Savings-cum-current account • Interest paying chequing facility account



Who can open?• 21 Years of Age• Citizen, PR or holds a valid work pass.• Minimum balance range from S$500 – S$5000

What you need:• For Singapore Citizens – Copy of Singapore IC and residential address

proof• For Permanent Residents and Work Pass holders: Copy of passport,

work pass, and residential address proof

Although banks in Singapore are generally reluctant to open a bank account for non-residents (i.e. foreigners living overseas), you have a good chance of opening an account under the following circumstances:

• You own a Singapore company and have an established corporate banking relationship with the bank.

• One of the bank’s existing clients can introduce you to the bank.• You have an existing relationship with the bank overseas.

Brokerage Account

There are two different types of brokerage accounts.1. Securities Account. A securities account is opened with the Central

Depository Pte Ltd (CDP), which acts as the custodian of your Singapore shares.

2. Trading Account. Trading account is opened with one of the financial institutes offering such service.

You will be able to trade on major international stock exchanges including US and European and many Asian stock exchanges through your trading account.

Who can open?• 21 Years of Age• Citizen, PR or holds a valid work pass.• Have a securities account with the Central Depository Pte Ltd (CDP).

However, while applying for your trading account, most financial institutions in Singapore will arrange to open your CDP Account if you do not have one.

What you need:• Account Opening Application Form• CDP Form 25 (Authorisation for linkage of trading account to

securities account)• CDP Form 1.3 (Application Form for opening a CDP Securities

Account if you don’t have one already)• W-8 BEN (if you wish to trade in the US Market)• Copy of Identity Card (NRIC) for Singaporean or Passport and Work

Permit/Employment Pass for foreigners on EP or Work Permit• Income documents

Private Bank AccountThis bank account is for individuals with high net worth who require portfolio management services and asset protection from economic and/or political risks. Private Banks usually provide customers whom hold at least $1 million of liquid assets with advice on investments, estate planning and taxes.

Who can open?Singapore residents as well as foreigners living overseas can open a private banking account in Singapore as long as you meet the bank’s minimum balance requirements and satisfy the bank’s ‘Know Your Client’ requirements.

What you need:• Account Opening Application Form• For foreigners residing overseas – Passport• For SPRs and Citizens – Copy of ID card (NRIC)• Residential address proof• Satisfactory information about client background and the origin of

funds

Read more at: http://www.guidemesingapore.com/

Contributed by: Singapore Business FederationThe Apex Business Chamber

LEGALIN SINGAPORE

SINGAPORE BUSINESS FEDERATIONLEGAL


Singapore’s Legal Framework Singapore is a sovereign republic, with a legal system based on the English common law. The legal system comprises three major sources of law, derived from the Constitution, legislation and judge-made Law (often referred to as case law or common law).

The foundation to the legal system in Singapore is provided by the Constitution which lays down the supreme law of the land and provides basic framework for the three organs of state which constitutes the executive; the legislature and the judiciary.

• The executive includes the positions of the Elected President, the Cabinet (Prime Minister and Ministers) and the Attorney-General.

• The legislature comprises the Elected President and Parliament and is the legislative authority responsible for enacting legislation. The President’s assent is required for all bills passed by Parliament.

• The judiciary consists of the Supreme Court and the State Courts. The head of the judiciary is the Chief Justice.

Legislation refers to acts enacted by Parliament and subsidiary legislation made by relevant authorities pursuant to the powers given to them by the constitution. The common law on the other hand is not codified or set out in statutes but are judgements delivered by the Courts of Singapore. Once a case has been decided it will be binding on any future cases which similar facts and issues depending on the hierarchy of the deciding court. Generally, decisions of a higher Court would bind cases heard in the lower Courts.

Competition Act The Competition Act 2004 (“Competition Act”) is the governing legislation for competition law in Singapore. The Act is enforced by the Competition Commission of Singapore (“CCS”) whose functions and duties include, inter alia maintaining and enhancing efficient market conduct, eliminating or controlling practices that have adverse effects on competition and promoting a strong competitive business culture in Singapore.

Unless they are excluded or exempted, there are three categories of activities that are prohibited under the Competition Act.

1. Agreements, decisions and practices that have the objective or effect of preventing, restricting or distorting competition in Singapore (the “Section 34 Prohibition”);

2. Conduct that amounts to an abuse of a dominant market position (the “Section 47 Prohibition”);

3. Mergers that result or are likely to result in a substantial lessening of competition (the “Section 54 Prohibition”). The term “merger” is broadly defined to cover a range of transactions and may include an acquisition of a minority shareholding if this enables the acquirer to obtain effective control over the company.

Amendments to the CCS guidelines have recently been proposed (the “Proposed Amendments”), with the main motivation behind these changes being the minimisation of regulatory and compliance costs. A fair portion of the Proposed Amendments is dedicated to providing

LEGALIN SINGAPORE

more details on the Section 34, Section 47 and Section 54 Prohibitions, particularly with respect to their underlying concepts and the assessment and investigation by CCS on alleged infringements of these prohibitions.

The Proposed Amendments are expected to be revised and implemented once the CCS has finished reviewing public feedback on the matter.

Arbitration Arbitration is a form of alternative dispute resolution between parties outside the courts by a neutral tribunal comprising one or more persons, called arbitrators, by whose decision the parties agree to be bound by. The agreement to refer disputes to arbitration is usually provided for in a contract. If no such agreement exists, the dispute cannot be referred to arbitration.

There are several key points to consider if arbitration or litigation is preferred in any particular case.

Arbitrate when there is a need for:

Litigate before local courts when:

• a neutral jurisdiction;• matters to be kept

confidential;• the decision-maker to have

specialised knowledge and skills;

• a judgement to be enforceable in multiple jurisdictions; or

• A flexible process.

• both parties are based in Singapore;

• no confidentiality is required;• there is no need for the

decision-maker to have specialised knowledge or skills; or

• A judgement to be enforced in Singapore.

Singapore has revised its International Arbitration Act in 2012, which is based on the Model Law on International Commercial Arbitration adopted by the United Nations Commission on International Trade Law. One of the objectives of this International Arbitration Act is to give effect to the New York Convention and Enforcement of Foreign Arbitral Awards.

Parties are generally free to choose the procedure for arbitration in Singapore, including the rules which apply. However, the procedures they select must comply with any applicable mandatory rules and public policy requirements of the law of the place of arbitration. Below is a typical arbitration process.





Merger and Acquisitions 2015 saw a bumper number of mergers and acquisitions (M&A) deals in Singapore with a total value of approximately US$101.2 billion which was nearly twice the value recorded in 2014, according to Duff & Phelps. Despite a less optimistic outlook for 2016 amid a global as well as domestic slowdown, the recently created ASEAN Economic Community (AEC) may encourage an increase in regional M&A deals between the AEC countries, particularly in the long-term as the planned measures to create an integrated economy in South East Asia are implemented.

Singapore is generally an open economy with minimal foreign ownership or investment restrictions when it comes to M&A. There are, however, statutes relating to some particular industries which govern take-over activity in Singapore. These restrictions limit the percentage of ownership or require prior regulatory approval for ownership in companies engaged in those industries. These industries are generally industries perceived to be critical to national interests, such as banking, finance, insurance and media.

In Singapore, M&A is largely unregulated by laws and parties are free to negotiate terms and conditions of the sale and purchase of the business / shares of a company. However, the Companies Act, the Competition Act and the Code of Takeovers and Mergers are the main laws and regulations governing a merger or acquisition.

The Competition Act prohibits mergers that have resulted, or expected to result in a substantial lessening of competition within any market of goods or services in Singapore. It is not mandatory to notify the Competition Commission of Singapore (the CCS) about a merger, however in order to avoid potential additional costs later in a M&A transaction, a party who is unsure whether a proposed acquisition is prohibited by the Competition Act may notify the CCS for preliminary ruling on whether the acquisition, if carried into effect, will infringe the provisions of the Competition Act.

The Employment Act of Singapore is another piece of legislation that has to be taken into consideration in an M&A. When a business or part thereof is transferred from the Seller to the Purchaser, Section 18A of the Employment Act automatically operates to transfer the contracts of employment to the Purchaser. In addition, all the Seller’s rights, powers, duties and liabilities under, or in connection with, the employment contracts of the employees, are transferred to the Purchaser and any act or omission done before the transfer by the Seller in respect of such contracts shall be deemed to have been done by the Purchaser. However, for non-Employment Act employees, such as those employed in managerial or executive positions, the contract will not be automatically transferred by law and the parties will have to negotiate the process.

Dispute Resolution in Singapore There are several options for resolving commercial disputes in Singapore, for instance, litigation, mediation and arbitration. This article focuses on the parties’ obligations to disclose relevant documents as part of the litigation process.

The litigation process in Singapore begins with either an issue of a Writ of Summons (“Writ”) or an Originating Summons. The latter is used where required by statute, or if the dispute is concerned with matters of law where there is unlikely to be any substantial dispute of fact. If the value of the claim exceeds S$250,000.00, the action has to be commenced in the High Court of Singapore. The Magistrates’ Courts and District Courts (part of the State Courts of Singapore) hear claims where the amounts in dispute do not exceed S$60,000.00 and S$250,000.00 respectively.

After the Writ is served on the defendant, the defendant has 8 days thereafter to indicate that he or she wish to contest the claim by filing a Memorandum of Appearance. If the Writ is served out of jurisdiction,

the defendant has 21 days to enter an appearance. The defendant has another 14 days thereafter to file a Defence or a Defence to Counterclaim. Subsequently, the plaintiff has another 14 days to serve on the defendant his or her response to the Defence (either a Reply or a Reply and Defence to Counterclaim).

The Writ, Defence and Reply are collectively referred to as pleadings. Generally, pleadings are deemed closed 14 days after service of the Reply. A number of interlocutory applications may be taken up by either party to the proceedings thereafter. The plaintiff can apply for summary judgment if, for instance, he believes that the defendant is unable to raise any triable issues. The defendant can take up an application to strike out the plaintiff’s action if, for instance, the defendant believes that the Writ does not disclose any reasonable cause of action. After these interlocutory applications are resolved and the action is to proceed to trial, parties will be required to disclose relevant documents in their possession, custody, or power as described below.

Discovery in legal proceedingsOne of the processes during legal proceedings is “discovery”. This process involves the disclosure and production of documents held or controlled by the parties that are relevant to the issues in dispute. The obligation to disclose relevant documents is an obligation that continues throughout the legal proceedings.

Parties are required to disclose (a) all documents which party have relied or will rely on, (b) all documents which could adversely affect one’s case or the other parties’ case, and (c) all documents which could support the other parties’ case. In other words, even adverse or potentially adverse documents must be disclosed.

The contents of privileged documents need not be disclosed to the counterparty. Such documents include communications with your solicitors and/or documents created for the purpose of your solicitors giving you legal advice or for the purpose of your receiving legal advice from your solicitors. In Singapore, legal advice given by in-house legal counsel to their companies’ management or staff is covered by this privilege. In addition, privilege can generally be claimed over any documents made for the sole or dominant purpose of a lawsuit.

The importance of disclosing all relevant documents is sometimes not appreciated by litigants. Poor discovery could very well undermine one’s case at trial. For instance, if a particular piece of document is only produced late in the proceedings, the evidence may well be rejected by the Court on the basis that the document ought to have been disclosed earlier during discovery.

Failure to provide proper discovery can also lead to the extreme consequences, in which the appellate court chooses to set aside the trial judge decision and to order a retrial, as seen in Teo Wai Cheong v Crédit Industriel et Commercial [2011] SGCA 13. In this case, the Court of Appeal concluded that the first High Court Judge’s findings of facts could well have been different if certain evidence (which was not disclosed) was placed before the High Court, and thus ordered a retrial. The decision of the second High Court Judge also went on appeal, and the decision of the second Court of Appeal is reported as Teo Wai Cheong v Crédit Industriel et Commercial and another appeal [2013] 3 SLR 573. The second Court of Appeal made several pertinent observations on litigants’ discovery obligations, including the point that in-house legal teams are expected to make reasonable inquiries and to initiate elementary steps to understand what exactly the company’s discovery obligations are.

The term “documents” has a broad definition and includes not only papers, but anything in which information is recorded. Documents which must be considered for disclosure include computer printouts, e-mail, internal memorandums, photographs, plans, drawings, video and sound

recordings, microfilm records as well as computer databases.

Once the relevant documents have been identified, the documents should be preserved in their existing form and no amendments or redactions should be made. Documents which are potentially relevant to the dispute should not be destroyed or marked in any way. The importance of keeping relevant documents intact is highlighted by the High Court in K Solutions Pte Ltd v National University of Singapore [2009] 4 SLR(R) 254. In this case, the Judge opined that if the party disclosed that he once had certain documents but it was established that he had deliberately destroyed them so as to put the documents out of reach of the other party, the Court might order that the action be dismissed or, as the case might be, an order that the defence be struck out and judgment be entered accordingly.

Even if the documents stored in electronic forms (including documents and emails) are deleted and/or destroyed, litigants ought to be aware that these documents may still be retrieved and/or recovered with the assistance of computer forensic experts.

It is therefore pertinent that businesses and individuals make a conscious effort to preserve documentary evidence so as to assist in either the prosecution of a claim or its defence. The Court gives due weight to documentary evidence in preference to verbal evidence because the former is more reliable and not subject to whether the witness’ recollection of the events is complete or accurate.

Listing in Singapore There are many reasons why a company may decide to go for a public listing. Access to capital, increased liquidity, unlocking shareholder value and improved global profile and prestige are just some of the reasons. Choosing the right stock exchange to list on is therefore very important to achieving the goals that the company intends to achieve upon its listing.

Advantages of listing in SingaporeSingapore is ranked as one of the best places in the world to do business for the past 8 years1. It has positioned itself as the wealth management hub of Asia. It is recognised as a dynamic global financial hub with estimated total assets of more than US$2.4 trillion under management. This provides ready funding for the growth of international companies seeking to raise capital in Singapore both at IPO and subsequent follow-ons. During the credit crunch in 2009, SGX-listed companies raised over US$15 billion in follow-on funding from the capital markets, one of the highest secondary fund-raising efforts in Asia that year2.

There are currently over 771 listed securities on the Singapore Exchange Securities Trading Limited (“SGX-ST”) with approximately 40% of its listed companies based outside Singapore3, thus making the SGX-ST a very international exchange.

The SGX-ST also has two boards on which a company may list. The Mainboard caters to more established companies who meet certain quantitative requirements. The Sponsor-supervised board (“Catalist”) does not have minimum quantitative requirements and caters more to young, fast growing companies. Sponsors are qualified professional companies experienced in corporate finance and compliance advisory work. The key benefits of listing on Catalist include (i) faster time to market; (ii) easier subsequent fundraising, acquisitions and disposals; and (iii) ongoing Sponsor guidance.

All of the above factors, combined with the SGX-ST’s reputation as a recognised, regulated exchange providing a fair, orderly and transparent market for the trading of securities, make the SGX-ST an attractive option for both local and international investors and an important avenue for Singapore and foreign companies to raise long- term capital.

Listing RequirementsThe following help the SGX-ST maintain a stringent but market-oriented, disclosure-based regulatory regime that is reputed for its efficiency, market transparency and integrity.

1 The Economist Intelligence Unit2 SGX website3 SGX website



Main Board CatalistQuantitative Criteria

Criteria 1Minimum consolidated pre-tax profit (based on full year consolidated audited accounts) of at least S$30 million for the latest financial year and has an operating track record of at least three years.

A company applying for admission to SGX Catalist need not meet any minimum operating track record, profit or share capital requirement but will need to engage a Sponsor that will assess the suitability of the company for listing and thereafter, prepare them for listing.

Although there are no quantitative requirements for listing on Catalist, the directors and Sponsors of companies listing on Catalist must state, without a profit forecast, that in their reasonable opinion, the working capital available to the company is sufficient for the present requirements and for at least 12 months after listing.

Criteria 2Profitable in the latest financial year (pre-tax profit based on the latest full year consolidated audited accounts), has an operating track record of at least three years and has a market capitalisation of not less than S$150 million based on the issue price and post-invitation issued share capital.

Criteria 3Operating revenue (actual or pro forma) in the latest completed financial year and a market capitalisation of not less than S$300 million based on the issue price and post-invitation issued share capital. Real Estate Investment Trusts and Business trusts that meet the market capitalisation test but do not have historical financial information may apply under this rule if they are able to demonstrate that they will generate operating revenue immediately upon listing.

Moratorium on Promoters4

Criteria 1 and 2 – Not allowed to sell entire shareholding for 6 months after listing.

Criteria 3 – Not allowed to sell entire shareholding for 6 months after listing and 50% or more for the next 6 months.

Not allowed to sell entire shareholding for 6 months after listing and 50% or more for the next 6 months

Public Float Requirements12-25% of enlarged share capital in public hands, depending on market capitalisation after listing. 15% of enlarged share capital in public hands.

Number of Shareholders

At least 500. At least 200.

Directors and Management1. The directors and executive officers should have appropriate experience and expertise to manage the group’s business. The character and

integrity of the directors, management and controlling shareholders will also be considered.2. The issuer’s board must have at least two non-executive directors who are independent and free of any material business or financial connection

with the issuer. 3. A foreign issuer seeking a Mainboard listing must have at least two (2) Singapore-resident independent directors. A foreign issuer seeking a

Catalist listing must have at least one (1) Singapore-resident independent non-executive director.4. An Audit Committee is required.

Financial ReportingCompanies may prepare their financial statements in compliance with (i) Singapore Financial Reporting Standards; (ii) International Financial Reporting Standards; or (iii) US Generally Accepted Accounting Principles. Accounts that are prepared in accordance with IFRS or US GAAP need not be reconciled to FRS.

MiscellaneousWhilst Catalist admissions are usually faster because the admission process is slightly different, the time to market for all listings typically ranges from 6 months to 15 months depending on how ready the listing group is and how extensive its group of companies is.

Key professional parties in a listing exercise include the Issue Manager/Sponsor, Legal Counsel(s), Auditors, Business Advisors and Public Relations Consultant.

Contributed by: Colin Ng & Partners LLP Established in 1988, CNP is a full-service law firm with a talent for cross-border business

4 Controlling shareholders and their associates and executive directors with an interest of 5% or more at the time of listing.

HUMAN CAPITALIN SINGAPORE

SINGAPORE BUSINESS FEDERATIONHUMAN CAPITAL

SINGAPORE BUSINESS FEDERATIONHUMAN CAPITAL



THE ROLE OF HRHuman Resource (HR) is taking on a strategic role in organisations throughout the world, with talent management and retention consistently being one of the top leadership agendas. Gone are the days when HR was primarily concerned with employment administration and employee relations; HR is now expected to take on a more proactive seat to prepare organisations for the future. The landscape is no different in Singapore.

HR management guru David Ulrich has identified additional key roles for the modern HR:

• Strategic and Business Partner: HR is to develop a game plan that fits into the overall business objectives, and recognise the ever-changing business environment which the organisation needs to adapt and thrive in.

• Employee Champion: HR to become the architect of the organisation’s employer brand and workplace culture. While promoting to external candidates about what it means to be part of the organisation, HR should also be concerned with creating a workplace that enables employees to stay motivated, be productive and happy.

• Change Agent: HR needs to be able to lead and support change. This involves managing the changing workforce needs, managing diversity and multigenerational workforce, adopting technologies, identifying competencies needed for future success; and shaping a culture of positive transformation.

With the dynamic business landscape that we live in today, HR is no longer a function which only multinationals can adopt. In fact, regardless of the size of an organisation, HR plays a vital role in shaping the success of an organisation – HR can build a competitive advantage for an organisation. For SMEs with limited resources and scale, it is even more crucial to get this piece right from the beginning so the business growth is not compromised and certain costly mistakes relating to people management can be avoided.

WHAT TO EXPECT IN 2016?Amidst the slowdown in economic activities felt throughout the world, this year presents both challenges and opportunities for organisations in the area of HR. Here are the three key trends that every organisation must be aware of in Singapore:

Better Protection of Vulnerable WorkersEffective as of 01 April 2016, the Employment Act has been updated with legislation mandating organisations to issue Key Employment Terms (KET) and itemised payslips. The move is consistent with recent efforts in protecting workers, especially those earning less than S$2,500 gross salary a month. Further changes to the Employment Act are expected in due course, with possible focus on protection for freelancers and contract workers.

Shaping the Singaporean CoreThere has been an emphasis for organisation to maintain a strong Singaporean core at its workforce. A Fair Consideration Framework has

HUMAN CAPITALIN SINGAPORE

been implemented and requires employers to advertise any vacancy in Jobs Bank and open the position to Singaporeans before making any work pass application for foreign hire. The Workforce Development Agency (WDA) and Employment and Employability Institute (e2i) have launched a series of programmes to encourage organisations to hire displaced Singaporean PMEs (Professionals, Managers, Executives). Through the Retirement and Re-employment Act, employers are required to offer re-employment to eligible employees who turn 62, up to the re-employment age of 65. It has been announced that the re-employment age will be extended to age of 67 effective as of 01 July 2017.

Future-Proofing our WorkforceWith the talk about the world’s economy entering the Fourth Industrial Revolution, the government has launched a series of initiatives to encourage re-skilling of workers to better prepare them for jobs of the future. SkillsFuture provides free credits for Singaporeans to attend courses to expand their knowledge, and at the same time develops a culture of continuous learning among the workforce. Organisations can also tap onto WDA’s Workforce Skills Qualification (WSQ) training programmes to further develop their workers’ skills. For SMEs, the funding support for such training programmes can be as high as 90%.

QUICK HR WINS FOR SMEs IN SINGAPOREWhile there are multiple areas HR can choose to focus on, we use the result of the latest National Workplace Happiness Survey to shed light on areas where SMEs can build competitive advantage in.

1. Enhance Employer Brand: The reputation of an employer goes a long way in enabling the organisation to attract and retain key talent. An organisation with a compelling purpose, supported with strong mission and values, is able to elicit the positive emotions of pride among its employees, which is a key engagement emotion.

2. Build a Culture of Trust: The management team of an organisation needs to create a supportive work environment with proper empowerment. This can be achieved through planned communication sessions, an effective recognition system, and openness in working styles at all levels.

3. Embrace Training and Development: It is often worthwhile for an organisation to structure employee learning from the day an employee reports to work, so to enable the employee to be productive within a short time. Developmental opportunities, supported with constant feedback, allow an employee to grow within the company and minimise the need to look out for other opportunities.

4. Create Hope: While “hope” is more of a psychological than a management concept, it is found to be strongly correlated with talent retention. One of the ways to create hope is to align the employees’ goal(s) with the organisation’s mission, dedicate time to listen to employees, and be open about performance and career progressions. In fact, having a HR team onboard – whether it is hired or outsourced – creates hope because employees would view this as a progressive sign for an SME.

THE RIGHT HR STRUCTUREFor HR to play an effective role in an organisation, there is a need to build a team consisting of HR professionals with different specialisations. Not only is this needed to ensure accountability in the various measures of HR based on the different roles, it also allows team learning and support within the HR department. The last thing an organisation would want to have is to hire a HR professional operating on a solo basis and the person becomes disengaged!

For organisations whose scale makes it difficult for them to build a dedicated HR department, outsourcing is another approach worth considering. Almost all aspects of the HR function can be outsourced. Larger organisations prefer to keep the strategic elements of HR in-house so that the decision-making related to people can be aligned with internal business goals, while they outsource the delivery processes such as payroll and recruitment. Smaller organisations adopt the opposite - they would be able to hire employees who manage the in-house processes while leveraging on external HR consultants to guide their strategic decision-making.

HR Shared Services (HRSS), like the one provided by Align Group and supported through SPRING Singapore’s initiative, is such a solution that enables SMEs to have a dedicated HR business partner on demand. Outsourcing as such is often practical and convenient, but to reap the full benefits, the management team of an organisation must be willing to set aside time and resources to focus on strategic HR issues, build on their unique knowledge about their people and culture, and “walk the talk” of treating their people as assets. As the HR role evolves to be something more complex and talent issues become more critical, outsourcing is expected to become more widespread across Singapore and the region.

Contributed by: Align Group

WE CAN HELPleverage on the expertise ofAccessAsia@Singaporestrategic partners for your start-up or expansion into the region.

CORPORATE ADVisory

Banking & Finance

legal

human capital business space

business matching

take your first BIG step into asia with us

[email protected]

www.sbf.org.sg/ACCESSASIA

TELECOMMUNICATIONS

intellectual property & Branding

BUSINESS & RESIDENTIAL

SPACE SOLUTIONS

Regional Lawyers

Singapore ● Indonesia

ANGELINE SUPARTO LAW CORPORATION in association with Nixon Peabody LLP

www.sbf.org.sg/Business-Expansion/AccessAsia

SINGAPORE BUSINESS FEDERATIONBUSINESS & RESIDENTIAL SPACE SOLUTIONS




Industrial Space Solutions in Singapore

The Ideal Location The ideal location for your industrial business depends on the nature of your intended activities, for instance, manufacturing, logistics, research and development or shared services. While the obvious choices are locations close to suppliers, transport hubs, or knowledge communities, it is important to note that under the Master Plan 2008; industrial land use zones are classified as: a. Business Park; b. Business 1 (B1); c. Business 2 (B2).

a. Business Park

Plaza 8

These are areas set aside for non-pollutive industries and businesses that engage in high technology, research and development, high value-added and knowledge-intensive activities. Examples include Changi Business Park, International Business Park, one-north comprising Biopolis, Fusionopolis and Mediapolis, and the Singapore Science Park.

b. Business 1 (Light industrial)

Techplace I

These are areas for industry and warehouse uses for which the relevant authority (National Environment Agency) does not impose a nuisance

buffer greater than 50m. B1 spaces such as Techplace I, Techplace II and Techlink require building specifications (floor loading, floor to ceiling height, power supply allocation) that are suitable for industries such as electronics and infocomm technology (ICT).

c. Business 2 (Heavy industrial)These are areas for industry and warehouse uses whereby the relevant authority (National Environment Agency) will impose a nuisance buffer greater than 50m and within health and safety buffers. Industries like food preparation and manufacturing, data centers and heavy equipment assembly will generally fall under this category.

Determining your Business Space RequirementsNext, as most industrial space in Singapore are in multi-storey buildings, it is important to determine the technical space requirements for your business activities. For example, data centres tend to have specific infrastructure requirements, such as high floor-to-ceiling height, more ancillary space for back-up power generators and dual electrical feed from two power substations. Wet lab research and development activities require spaces with provisions for ductwork and floor traps. Manufacturers using heavy machinery require spaces with higher floor loading, higher clear ceiling height for hoisting equipment, and loading bays.

Having such information on hand will allow the landlords to identify an appropriate space for your operations. If your company has short to mid-term expansion plans, you may want to take those expansion plans into consideration. Expanding within the same premises will give you the advantage of maximising operational efficiency.

Options for Business Space FinancingDepending on your business strategy, capital and financing needs, you can opt to either lease, or purchase and own the space.

Leasing can be a preferred option for businesses looking to better utilize their cash to finance business activities rather than real estate. Leasing ready-built facilities will allow you to start your operations quickly. Ready-built facilities are generally available for lease for three years with an option to renew for another three years based on prevailing market rental rates. Flexible lease tenures may also be available, for example, a five-year lease with an option to renew for three or more years.

Besides ready-built facilities, companies may also opt for greenfield build-to-suit solutions. These are solutions where a developer builds the new facility on a turnkey basis according to the company’s specifications and structures a long-term lease.

Partnering a Reliable LandlordIn Asia, it is also important to find the right landlord to be your business space solutions partner. A landlord with a proven track record in serving a diverse clientele of corporate customers – multinational corporations, leading Asian companies and small & medium enterprises across different industries – demonstrates its ability to service a broad range of businesses of different sizes.

BUSINESS & RESIDENTIALSPACE SOLUTIONS

Besides strong financials, a reliable landlord should also possess the right capabilities to ensure your operational success. These include strong facilities management capabilities, good customer service solutions, and readily-available customer service platforms.

If your company has plans for regional expansion, partnering a landlord with a strong portfolio of real estate solutions in Asia can be an advantage, giving you ready access to a wide variety of space solutions across different markets.

Contributed by: Ascendas-Singbridge Pte LtdAsia’s leading provider of sustainable urban solutions





Serviced Office SolutionsIf you are seeking an office solution that gives you flexibility but can’t afford a substantial capital outlay, then serviced offices may be the answer.

What is a serviced office solution? Unlike a blank office unit with which you are free to furnish as you like (once the landlord hands you the keys of course), serviced offices come already complete with all the usual fittings required to run most businesses.

In land-scarce Singapore, the cost of setting up a business in the CBD area is considerably high. In recent times, there are an increasing number of serviced offices opening up in the city fringe areas packed with accessibility and not to mention a wide range of amenities. Serviced offices located in the city fringe areas are priced at a lower cost, suitable for businesses seeking better value.

At the barest minimum, a serviced office solution offers a workstation accompanied with administrative support services such as answering calls, handling mail, housekeeping, etc.

Is a serviced office solution for you? Serviced offices come in a variety of configurations, but most are set up such that you can move in, unpack and start running your business immediately. Therefore, serviced offices are suitable for business owners who do not wish to spend too much time and resources on setting up an office. Because of their lower start-up cost and quick turnover, serviced office is an affordable solution for entrepreneurs or part-time business owners.

The additional support services included helps a business owner by providing printing, telephone and messaging, mail, fax and courier services under one roof. Business owners can have better control over business overheads while saving on staff costs for admin personnel. It is also common for serviced offices to come with shared use of meeting rooms, pantry and lounge areas. Most centres’ offer a plethora of centralised services, including secure 24/7 access and security as well as in-house IT support.

Serviced office is a solution for varied uses; long-term offices, temporary offices while their office is under-going renovation, project offices, branch offices and day offices. The bottom line is, serviced offices offer a high degree of flexibility.

What does a serviced office solution typically come with?

There are varied options in the market and the level of amenities, fittings and support services included is dependent on the package of your choice. This provides a high degree of flexibility, as you will be able to choose exactly what you need. Peruse the following list for an idea of what is included in a serviced office solution.

• A distinguished business address• Centralised management of mail, fax and courier services• Receptionist and guest welcoming areas• On-site centre manager and experienced support team• Printers, fax machines, scanners, copiers and essential office

equipment• High-speed broadband Internet access using LAN Cable and WiFi• In-house IT maintenance and support• 24x7 access and security with CCTV surveillance

• Office furniture including worktables, executive chairs, mobile pedestals and filing cabinets

• Voice conferencing-capable digital telephones and dedicated telephone numbers with call answering in your company name

• Fully furnished conference/meeting and video conferencing rooms• Fully stocked pantries• Daily housekeeping services

What is the pricing structure of a serviced office solution?

The pricing strategy of a serviced office suite differs in the market. Most serviced office operators’ charge a basic license fee and add-ons are charged based on a pay-per-use basis. Others charge an all-in rate, inclusive of telephone and Internet and other requirements. Compared to a traditional office that quotes based on a per square foot and bare unit basis, the charges for a fully furnished serviced office suite is dependent on the number of persons per room or room size and enjoy all the facilities provided by the serviced office provider.

Virtual Office SolutionsA virtual office is the most brilliant solution for businesses that desires the benefits of a physical office but not the space. Having a virtual office means that they can obtain a business address and a full-time receptionist to answer calls and handle mail at a low-cost. In addition, they may have access to hot-desking and meeting rooms on a pay-as-you-go basis. Acquiring a virtual office allows business owners to work anywhere, anytime and yet maintain their professional image. Additional monthly ad-hoc services can be easily setup if required. Another benefit from a virtual office is the smooth transition to a serviced office when the business grows and requires a physical space.

Cost EffectiveFinances are crucial especially for start-up companies and a virtual office solution will make a big difference to your outgoings as compared to the costs associated with leasing a traditional office space. To rent a traditional office, a business owner will be looking at fixed overheads such as rental fees, telephone and internet subscription charges and administrative support personnel to take care of. A virtual office solution is only at the fraction of the price of renting a physical desk at a serviced office.

Professional Business AddressThe most basic virtual office package will incorporate a professional business address. A professional address will alleviate the privacy as well as security concerns of running your business. Also, it provides business owners with a professional mailing address that they can use for receiving and delivering mails without the negative connotations of using a PO Box.

Answering and Forwarding ServicesIf you opt for a virtual office call answering service, it will mean that your business calls will be answered by professional receptionists who will either transfer your calls to your mobile directly or they can take messages which will be forwarded to you via email. Mail can also be forwarded to an alternate address, saving you precious time of picking them up yourself.

Hot-deskingDepending on your needs, some virtual office package solutions consists of a number of hot-desking hours. This can be used should you require the use of a physical office occasionally.

Meeting Room/Video-conferencing Room RentalBeing a virtual office user enables the booking of meeting rooms at an affordable rate. These meeting rooms come inclusive with hot beverages and the usage of Internet, projector screens and whiteboards. Video-conferencing is an additional service a virtual office solution provides, enabling you to communicate across borders in a professional meeting room setting.

Expansion For start-ups and foreign companies that are interested to expand into new markets, a virtual office solution provides this possibility at a low capital cost with low risk.

Contributed By: GreenHub Suited Offices Suited Offices for Born Global Firms



facebook.com/workplusstore

The Work+Store ConceptWork+Store provides one-stop integrated services to help today’s busy urbanites live and work better. Comprising Work+Store Space Rental and Work+Store Valet Storage, our services cater to business owners seeking dual-purpose work space arrangements as well as households or individuals in need of temporary storage solutions.

What is Work+Store Space?Work+Store Space meets the work and storage requirements of business owners by allowing them to perform order fulfilment duties and store their goods within the same facility. This redefines the way business is conducted as the need to source for an office space to operate out of that’s separate from its warehouse unit no longer exists; Work+Store Space has proven to be a particularly attractive option to e-commerce businesses, e-retailers, and trading companies.

Features of Work+Store Space

• Wide variety of small unit configurations (120sqft /197sqft /272sqft/500 sqft and more) to suit different business needs

• No-frills space outfitted with air conditioning, overhead lighting, and power sockets

• No hidden charges. Rental rate includes facilities fees, utilities fees, and GST

• 24/7 authorised access • Secured storage with 24/7 CCTV video surveillance• Registered business address• Ample parking lots

By offering compact units, additional mezzanine levels, and flexible rental terms, Work+Store Space provides unparalleled convenience and cost savings to businesses in a conducive and secure environment.

What is Work+Store Valet Storage?Sporting the catchy tagline ‘You Pack, We Pick Up’, Work+Store Valet Storage provides temporary storage solutions to anyone looking to de-clutter their existing space without the hassle of leaving the comfort of their home.

Guide to Work+Store Valet StorageWork+Store Valet Storage is a hassle-free service which helps everyday people with too many things in too small a space to better manage their environment in five simple steps:1. Order storage boxes online2. Receive empty boxes that are delivered to your door step for free3. Pack away and snap a photo of the contents in the box4. Alert our team to pick the packed boxes up for free5. Log on to your account to retrieve your items at any time

Work+Store Valet Storage is especially convenient for those who rely on public transport for commute and is ideal for small-scale retailers who regularly shuttle between warehouse and retail shops to manage their restocks. The valet storage service also comes in handy for stowing away of bulky items used either seasonally or infrequently, such as winter clothing, holiday tableware, sports equipment, and so forth.

Pricing Structure of Work+Store Valet Storage Work+Store Valet Storage charges a monthly rate per box and/ or a separate fee for odd sized items.

Why Choose Work+Store Valet Storage?

• Pay only for what you need, be it a 60cm (L) x 40cm (W) x 32cm (H) storage box or space to house an odd size item

• End-to-end service without having to leave home• Secure storage environment equipped with surveillance cameras. All

boxes and items are also insured for added assurance• All boxes come with anti-tamper seals• Automated item retrieval process using online system

Contributed By: Work+StoreA Subsidiary of LHN Group Pte Ltd

INTELLECTUALPROPERTY

C

M

Y

CM

MY

CY

CMY

K

8. FT Consulting-Inside Page Advertisement.pdf 1 26/7/16 12:04 PM

SINGAPORE BUSINESS FEDERATIONINTELLECTUAL PROPERTY


Intellectual Property – How can companies unlock the value of their intangibles to stay ahead of the game?

Today’s economies have become increasingly knowledge-based. Technological innovations have fundamentally altered, and continue to alter, the market landscape. Intangibles such as brands, ideas, information and technical know-how have become valuable business assets. These changes have driven the rapid growth in global demand for IP rights, which are increasingly sought after to enable businesses to achieve the best possible commercial results.

As competition intensifies, IP is becoming particularly recognised as crucial to companies, as their successes depend increasingly on their continuous innovation preserving a competitive edge. However, many companies tend to under-utilise IP in a systematic manner due to a lack of awareness and insufficient understanding of its usefulness and relevance. This may cause them to miss out on the opportunity to unlock the commercial potential of latent and intangible assets already residing in their businesses.

Companies can start to embrace IP in their businesses by following key steps: -

Understand IP Relevance in theCompany & the Broader IndustrySTEP 1

Create and Managethe IP PortfolioSTEP 2

Weave IP into theBusiness StrategySTEP 3

Step 1: Understand IP Relevance in the Company & the Broader IndustryFirst, a company must have a strong idea of its current state. It must be clear of its internal environment, (its own strengths and weaknesses, internal organisation structure, star products and services, and what it seeks to achieve as a business) as well as its external environment (target markets, demands and trends, the competitive environment, typical industry practices and supporting resources). By assessing these factors and understanding the needs that it can fulfill in the industry, the company should then decipher how its value propositions can be distilled down to protectable IP rights.

Step 2: Create and Manage the IP PortfolioNext, once the protectable IP rights have been identified in Step 1 as mentioned above, the company should crystallise its IP Policies and actively manage its IP Portfolio to generate returns. Internally, this

would include putting in place policies and procedures to create, own and protect its IP assets. Externally, there is a need to have a clear appreciation of options and channels available to commercialise the various IP assets. For technology-based companies, this may mean conducting a technology scan to recognise where their technologies stand in the market, as well as to identify emerging technologies and potential future competition.

Step 3: Weave IP into the Business StrategyFinally, the company needs to deploy the IP assets in the context of its own business strategy. This includes, amongst other activities, planning the IP utilisation methods (e.g. manufacturing own products, licensing to others, cross-licensing, etc.), acquiring and building the relevant IP capabilities, as well as deciding on geographical markets which do not only have commercial potential, but adequate protection for its IP assets as well.

Singapore has poised itself to ride the “IP Wave” well. The country occupies top positions in global rankings for IP protection, placed 1st in Asia and 2nd in the world for IP protection for the 4th consecutive year, according to the recent World Economic Forum’s Global Competitiveness Report 2014-2015.

1stin ASIA

2ndin the World

for 4consecutive

years

- World Economic Forum’s GlobalCompetitiveness Report 2014-2015

To encourage companies to kick-start their IP journey here, comprehensive infrastructure and substantial support systems involving IP protection and IP-related services are widely available for Singapore-based businesses. Furthermore, for eligible companies, grant funding and other incentives are also offered by various government agencies to defray the costs of IP-related consultancy projects and initiatives.

Contributed by: FT ConsultingPowering Business Growth since 1991

INTELLECTUALPROPERTY

SINGAPORETO BEYOND

SINGAPORE BUSINESS FEDERATIONSINGAPORE TO BEYOND


C

M

Y

CM

MY

CY

CMY

K

SH-Ent-Solutions-Award-Print-Ad-HIRES.pdf 1 6/16/16 5:54 PM

SINGAPORETO BEYOND

ASEAN

OverviewThe Association of Southeast Asian Nations (ASEAN), an economic trading bloc formed in 1967, now comprises 10 Asian countries including Singapore, Malaysia, Indonesia, Thailand, Philippines, Brunei, Vietnam, Cambodia, Laos and Myanmar. The founding members (Brunei, Malaysia, Indonesia, Philippines, Singapore and Thailand) determine the policy framework and devise the agenda and agreements to drive the bloc towards its objectives. The joining members (Cambodia, Laos, Myanmar and Vietnam - CLMV) adopt and implement the agreements. Besides the 10 member countries there is a group of six countries that has a trading link with the ASEAN countries, referred to as the ASEAN +6 (Japan, New Zealand, South Korea, Australia, China and India). There is growing interest among several other countries to establish trading and economic links with the economic bloc.

Why ASEAN Matters?ASEAN, with a GDP of US$2.57 trillion in 2014, was the third largest economy in Asia and the seventh largest in the world. More than 50% of its 622million population is under 30 years. The per capita GDP was US$4,000 in 2014. ASEAN has made significant progress in terms of economic prosperity and integration.

The bloc is gaining traction among international enterprises and investors as a significant market because of its population size, growth, GDP and its largely young middleclass consumers. China, which evolved into the manufacturing backyard of the world, is losing its traction with rising business cost. On the other hand ASEAN member states such as Cambodia, Vietnam and Myanmar, with their low cost labour and rich natural resources, are gaining brownie points from the international manufacturing companies. The burgeoning middleclass is a ready made market that could bail out the multi national enterprises (MNEs) that are ailing from demand saturation in mature markets. ASEAN’s unwavering commitment towards establishing both a single market and a production base with free movement of goods, services, investment, capital and labour is strongly influencing business strategies. ASEAN is keen on creating a conducive business environment by simplifying tax, customs and transport, while weeding out corruption and upholding the rule of law and improving the investment regime.

FDI on the riseCollectively the ASEAN was the largest recipient of the total Foreign Direct Investment (FDI) outflow in 2014. With US$136.2 billion in 2014, the FDI investment into the region has been rising for the third consecutive year where the top five investment sources were the European Union (EU), intra-ASEAN and Japan, the United States as well as Hong Kong (China). The European Union is an important source of FDI. With investments of US$24.4 billion in 2014, the intra ASEAN investment accounted for 18% of the FDI in the regional bloc. Within ASEAN Singapore is the largest recipient of FDI.

Key DevelopmentsAEC

In 2015, ASEAN achieved an important milestone with the formal establishment of the ASEAN Economic Community (AEC) that came into effect on 31 December 2015. The AEC rests on four key pillars - a single market and production base, a highly competitive economic region, a region of equitable economic development and a region fully integrated into the global economy. The AEC is anticipated to lift the growth of the Asian region as a whole by forging enhanced trade and economic ties with the rest of the world. It will elevate ASEAN to become the fourth largest economy in the world by 2050. The action plans listed in the AEC blueprint that was rolled out in 2007 have not been fully accomplished yet but measures to integrate the economy will be gradually implemented in the next 10 years. An estimated 14 million new jobs will be generated by 2025.

Trade FacilitationRemoving tariff and non-tariff barriers are essential to enhance trade within the bloc. ASEAN member states are incrementally working towards an integrated market by eliminating these barriers and implementing systems that will facilitate deeper trade engagements.

To date, the ASEAN-6 have virtually eliminated their intra-regional tariffs, with 99.2% of tariff lines at 0%. For the CLMV, the figure stands at 90.86% giving an ASEAN average of 95.99%.

Efforts to implement an ASEAN-6 wide Self-Certification Scheme is underway in order to simplify the Rules of Origin to qualify for the preferential benefits under ATIGA.

The Protocol for Legal Framework to implement ASEAN Single Window (ASW) was signed in 2015. ASW will facilitate a single point of entry for trade documents and information, providing easy custom clearance across borders among member states. This will speed up transportation and reduce cost involved in paperwork.

Work is in progress to establish ASEAN Trade Repository (ATR), which will be accessible through a public domain. ATR will contain trade-related information such as MFN tariffs, preferential tariffs offered under ATIGA and other ASEAN FTAs, Rules of Origin, non-tariff measures (NTMs), national trade and customs laws and rules. The ATR has been authorised by ATIGA.

Harmonisation of standards is essential to remove technical barriers for promoting trade. It is also crucial to integrate production networks. Mutual Recognition Agreements (MRA) have been concluded for three sectors; electrical equipment and electronics (EEE), cosmetics and medicinal products.

Investment FacilitationImproving access to capital and investment opportunities is another key area of focus. ASEAN intends to achieve this by improving transparency and initiating regulatory reforms while liberalising financial services and harmonising payment and settlement systems.





The ASEAN Trading Link, launched in September 2012, provides investors with easier and more seamless access into the markets of Malaysia, Singapore and Thailand from one single access point.

The ASEAN Capital Markets Forum (ACMF) launched the ASEAN Corporate Governance Scorecard. It is aimed to improve the corporate governance standards and practices among listed companies in ASEAN.

The Monetary Authority of Singapore (MAS), the Securities Commission of Malaysia (SC Malaysia), and the Securities and Exchange Commission, Thailand (SEC Thailand) launched the ASEAN CIS Framework to facilitate cross-border offers of CIS to retail investors. The Fund managers based in Singapore, Malaysia and Thailand can now offer CIS constituted and authorised in their home jurisdiction directly to retail investors in the other two ASEAN countries.

Connectivity FacilitationConnectivity is key to improve trade and economic engagement. It is a crucial element in evolving into a seamless supply chain and efficient production base. It will improve speed of transit while reducing the cost of transportation and distribution. ASEAN has a comprehensive land and air connectivity blueprint.

The ASEAN Open Sky Policy came into effect in 2015. The Open Skies Policy, which is also known as the ASEAN Single Aviation Market (ASEAN-SAM), will facilitate airlines from ASEAN member states to fly freely throughout the region via the liberalisation of air services under a single, unified air transport market. All 10 member states have recently ratified a deal allowing airlines that meet safety requirements to fly freely from their home countries to any city within the bloc. This will increase air traffic and service quality while bringing down the operating costs of airlines. Customers will also benefit from lower ticket prices.

As for land transportation, the building of the remaining missing links under the ASEAN Highway Network, have been prioritised. It is a project to build connecting road corridors linking all of the ten member states as well as the countries beyond. Work is also underway to upgrade the roads in ASEAN’s designated Transit Transport Routes (TTRs).

Work on Singapore – Kunming Rail Link (SKRL), a project connecting Singapore, Malaysia, Thailand, Myanmar, Vietnam, Cambodia, Laos PDR and the People’s Republic of China, is underway and will speed up with the Asian Infrastructure Investment Bank’s involvement.

Workforce MobilityASEAN paves the way for easy mobility of skilled and licensed professionals through the mutual recognition of qualifications of such professionals among member states.

In total, eight MRAs have been concluded, namely for engineering services, nursing services, architectural services, surveyors, medical practitioners, dental practitioners, accounting and tourism professionals.

ASEAN Free Trade AgreementsASEAN has established FTA and Comprehensive Economic Partnership Agreements with China, Japan, the Republic of Korea, India, Australia and New Zealand. Negotiations are underway for the Regional Comprehensive Economic Partnership (RCEP), an FTA involving ASEAN and its six FTA partners. If concluded it will be a game changer by means of instituting a largest integrated market, comprising of almost half of the world’s population. It will facilitate improved market access, promote trade and initiate regulatory reforms.

Singapore as an ASEAN HubSingapore, as an advanced economy with political stability and top-notch infrastructure and a world-class workforce, has served as a hub for the South East Asian region. More importantly lack of corruption and red tape sets apart Singapore in the region. As a founding member of ASEAN, it has stayed committed to the vision and objectives of the economic bloc and is dedicated to the inclusive development of the member states of ASEAN. Business and investors can leverage Singapore’s unique and competitive strengths to access the ASEAN opportunities.

Treasury CentreSingapore as an international financial centre ticks all of the boxes as an ideal location for establishing a treasury centre. It has a robust legal framework, almost all major financial institutions have a base in Singapore, knowledgeable workforce, proximity to production base as well as markets and more importantly a concessionary tax regime for treasury centres. In the recent 2016 Budget, the concessionary tax rate was further reduced to 8%; the normal corporate tax rate is 17%. Singapore is the world’s third largest foreign exchange hub and the second largest renminbi (RMB) centre. Companies intending to capitalise on the ASEAN–China FTA can benefit significantly by operating from Singapore. They can settle directly in RMB and avoid risks emanating from exchange volatility. It must be noted that China is ASEAN’s largest trading partner.

Research and Development CentreSingapore has a robust Intellectual Property Protection regime. From 1 September 2015, Singapore’s Intellectual Property Office of Singapore (IPOS) commenced operating as ASEAN’s first International Patent Search and Examination Authority under the Patent Cooperation Treaty (PCT). This will enable innovators and businesses to seek patent protection in 148 countries through a single international patent application. Patent applicants can also enjoy rebates of up to 75% when making a PCT application through IPOS. Enterprises and entrepreneurs skewed towards the innovation economy can ensure protection of their invention by establishing their R&D centres in Singapore.

A Channel to Invest into ChinaASEAN institutional investors can use Singapore as a channel to invest into China to capitalise on China’s Renminbi Qualified Foreign Institutional Investor (RQFII) scheme that allows access to China’s capital markets. ASEAN investors who are keen on Chinese Securities can avoid exchange rate volatilities and invest in RMB denominated securities traded in Singapore. With the establishment of the ‘One Road One Belt’ plan, the investment and trade engagement of ASEAN companies in China will escalate. By establishing Singapore holding companies, the ASEAN businesses can take advantage of Singapore-China FTA and the low tax regime of Singapore.

Gain an Edge from the Expansive Economic Agreements

Singapore has a vast network of DTA and FTA in place. International companies can capitalise on this extensive network of agreements by setting up Singapore companies to gain access into the ASEAN markets. International companies interested in ASEAN markets can invest through Singapore holding companies. Singapore’s extensive DTA network will essentially bring down their tax liabilities on the incomes earned from dividends, interest and royalties. Notably, the foreign earned income is not subjected to tax in Singapore, unless it is received in Singapore.

Singapore’s Location AdvantageSingapore’s strategic location along the corridors of east and west makes it an ideal logistics and transportation hub. Its world-class air and seaports have won international accolades for their capability in handling record volumes of shipments. Its connectivity to the west and east makes commuting easy for jet setting executives. Presently significant parts of the low–value manufacturing sector are shifting to the low cost ASEAN economies. As ASEAN transforms into the world’s factory floor, Singapore’s role as a logistics hub in the supply chain will get magnified.






Partnering Singapore companies to realize your global business aspirationsSingapore as the Ideal platform to access Asia markets

Over the recent years, the Singapore government has rolled out several grants and incentives to help Singapore based companies in the following areas (See Figure 1):

a. Strengthen human capital, product development, intellectual property development & protection, and brand building via encouraging various forms Singapore-foreign collaborations; and

b. Develop overseas markets via combinations of distributorship, franchising, licensing and mergers & acquisitions

Singapore Government’s holistic support to Singapore companies engaging with collaboration with foreign business partners

1A

1B

Banks Investor

SingaporeCustomers

OverseasCustomers

SingaporeSuppliers

OverseasSuppliers

Value-added Projects• Factory Automation• Adoption of infocomm Technology

Definition of SMEs• Annual revenue not more than S$100 million OR employs not more than 200 workers• Must be 30% owned by Singapore Citizen or Parmanent Residents.

Value-added Projects• Product Innovation• Intellectual Property development• Brand Development• Human Capital Development• Process Improvement• Customer Service Development

3A

3B

2A 2B

4A 4B

Singapore SMECompany

Key activities eligible for incentives SPRING IE SG EDB IRAS A*STAR IDA WDA

1A Sourcing & Alliances in Singapore Yes Yes

1B Sourcing & Alliances overseas Yes Yes

2A Access to Bank Loans Yes Yes

2B Access to Investors Yes Yes Yes Yes

3A Customer Development in Singapore Yes

3B Customer Development overseas Yes

4A Purchase Plant, Machinery & IT Yes Yes Yes Yes

4B Improve Internal Capabilities Yes Yes Yes Yes Yes Yes Yes

Abbreviation Government Agency Website

SPRING SPRING Singapore www.spring.gov.sg

IE SG International Enterprise Singapore www.iesingapore.gov.sg

EDB Economic Development Board www.edb.gov.sg

IRAS Inland Revenue Authority of Singapore www.iras.gov.sg

A*STAR Agency for Science Technology & Research www.a-star.gov.sg

IDA Infocomm Development Authority of Singapore www.ida.gov.sg

WDA Workforce Development Agency www.wda.gov.sg

Figure 1Compiled by Oriel Management Consulting Pte Ltd

Singapore is home to about 119 foreign commercial banks and over 600 international fund managers in Singapore. Notable banks are Citibank, Standard Chartered, HSBC, Bank of China, etc., and private equity players like Partners Group, CVC, KKR, Carlyle, Blackstone, TPG, L Capital Asia (the investment arm of Louis Vuitton), Everstone, Bain Capital, and sovereign wealth funds such Nordic Capital have regional offices in Singapore. Singapore-based enterprises can tap on enormous liquidity and geographical network of these banks and private equity institutions to accelerate their global business expansion.

Figure 2 shows the selected cases of foreign companies partnering with Singapore companies, and tapped on Singapore’s capital markets, government grants and incentives to develop Asian opportunities.

Selected Foreign-Singapore collaborations to develop Asian market

Foreign Company Background /Challenges Remedy Benefits of working with

Singapore company

Italy

Italian company adopted a “fly in and fly out” approach to develop electrical machines and accessories project opportunities through local agents and brokers in different countries of Asia and implement the projects when they are secured. However, revenue growth was very slow due to lack of commitments from local agents/ partners

Formation of 30% (Italy) / 70% (Singapore) Joint Venture (“JV”) in Singapore

After the JV, the JV Company tapped on SPRING Singapore and IE Singapore grants and successfully set up project development offices in Malaysia, Vietnam and Myanmar within 2 years. Revenue contribution from the JV more than 3 times over 2 years.

Germany

Germany company adopted a security monitoring hardware distributor arrangement with a Singapore company for more than 10 years. However, the revenue experienced slow growth for many years

Acquisition of majority shares in its Singapore distributor

After acquiring majority shares in its Singapore distributor, the German company gained significant access to projects in Singapore, Malaysia, Indonesia and China, and also obtained cost savings from tax and grant incentives from various Singapore government agencies for product innovation and market development, and intellectual property protection expenses. Revenue increased significantly.

Korea

Korean company set up 100%-owned Singapore-based company to carry out projects in interactive digital video walls which were installed at airport and shopping malls. It has experienced slow growth due to its small balance sheet.

Sale of 40% stake in the Singapore-based company to a Singapore listed company

After the sale of 40% stake to Singapore listed company, the joint-venture gained access to equity capital & bank facilities to support larger project contracts, as well as grants and incentives from SPRING, IE Singapore, IRAS and IDA to defray the cost of product R&D, overseas market development and intellectual property development and protection.

Australia

Australian company has been supplying furnishings solutions through a Singapore partner (reseller) company which specializes in aircraft interior upholstery works. However, the revenue growth has been slow due to “informal” relationships which did not fully unleash the benefits of Singapore as a base to access Asian markets

Singapore company’s merger of the Australian company via a share swap deal which became a Joint-venture

Singapore-Australian merger led JV was established, the JV gained access to aircraft upholstery projects in Singapore, Malaysia and the Philippines. The JV is currently working with SPRING Singapore, WDA and IE Singapore on grants and incentives to support product development, upholstery manpower training using Australian’s expertise, and regional development project such as setting up aircraft upholstery hangar facilities.

Figure 2



The next 10 years presents great window of opportunities for foreign enterprises and Singapore companies to join hands for significant business growth in Asia for the following reasons:

a. Formation of ASEAN Economic Union, signing of Trans-Pacific Partnership agreements between ASEAN and US, the China-ASEAN Free Trade Agreement will facilitate movement of goods and services with minimal or no import/export duties and taxes in Asia

b. Leveraging on Singapore as a base to effectively capture the Asian market for Foreign enterprises by tapping on enormous amounts of funding from banks, private equity funds and government of Singapore (See Figure 3)

Foreign Company using Singapore as a Springboard for Significant Business Growth in Asia

Why Singapore?

• Low Corporate Tax of less than 17% effectively (after government fiscal and grant incentives)

• Personal income tax is less than 20% effectively• Access to wide source of funds banks, investment funds, etc in

Singapore which are supportive of international ventures• Wide range of Singapore government grants and incentives for R&D,

Brand Development, Franchise & Licensing Development, Overseas market development, IP development, etc. for Singapore- -based companies with at least 30% shareholdings owned by Singapore citizens or permanent residents

• Singapore has more than 20 Free Trade Agreements (minimum duties on goods coming out of Singapore), 70 Double Tax Treaties (for tax optimization if export is carried out from Singapore), 40 Investment Guarantee Agreements (for investment protection) with major markets like US, EU, Japan, China, India and many more.

• Singapore is ranked 2nd in the World for Intellectual Property (“IP”) protection and ease of filing and development of IP. It has agreements and treaties with ASEAN countries, China, India, US, EU for quick cross border arbitration of IP disputes and enforcement via Singapore panel of courts and international arbitration facilities.

Contributed by: Oriel Group

C

M

Y

CM

MY

CY

CMY

K

Figure 3





Accessing Southeast Asia through SingaporeDue to its numerous free trade and tax agreements with regional countries, Singapore is an ideal springboard into Southeast Asia, which is a thriving economic hub of global importance. Driven by a burgeoning population, growing trade and investment activity and increasing international engagement, Malaysia and Vietnam are key contributors to the ASEAN economy. Ascendas-Singbridge engages in urbanisation initiatives in these countries, offering quality industrial and business park spaces to help your company succeed in Asia.

Nusajaya Tech Park - Malaysia

Nusajaya Tech Park is a 60:40 joint venture between Asia’s leading business space solutions provider Ascendas and Malaysia’s leading property developer UEM Sunrise. The 210-hectare tech park, which is one of Ascendas’ largest in Southeast Asia, leverages on the company’s proven track record in masterplanning, development and management of business space in Asia to create a new benchmark in Iskandar Malaysia. Strategically located just five minutes from the Malaysian CIQ Complex, Nusajaya Tech Park is one of the closest industrial sites to the Malaysia-Singapore Second Link and a prestigious industrial address within the award-winning Iskandar Puteri (formerly known as Nusajaya) regional city. The Park enjoys seamless connectivity via a network of international airports, seaports, highways and the future Kuala Lumpur-Singapore High Speed Rail, offering a definitive location advantage for quick access to business networks in both Singapore and Malaysia.

Nusajaya Tech Park is ideal for companies in key growth industries such as Electronics, Pharmaceutical and Medical Devices, Food Processing, Precision Engineering, Fast-Moving Consumer Goods (FMCGs), Logistics and Warehousing, Data Centres and General Engineering Services. The park will also offer a pro-business environment with cluster-oriented customer base, where companies can co-locate and derive synergies with their customers and suppliers in a single location.

The project will be developed in phases over nine years and construction of the first batch of ready-built facilities has been completed, and works for the second batch have commenced to cater to the demand of manufacturing investments into Iskandar Malaysia. When completed, the Park will offer a world-class business environment, supported with comprehensive security system and eco-friendly infrastructure, for over 200 companies from light to medium industries. The Park has also set a new benchmark as the first tech park in Malaysia to be awarded the Green Mark for Districts – Gold (Provisional) Award by Singapore’s Building and Construction Authority.

OneHub Saigon - Vietnam

Located 15 km from the Central Business District of Ho Chi Minh City and connected directly to the future metro station, OneHub Saigon sets a new benchmark for business parks in Vietnam. The 12-hectare business park comprises of quality business park spaces ideal for companies in the hi-tech and supporting industries, research and development functions, information technology enabled-services such as software development and back-office services, media, e-commerce and logistics business.

This park will be supported by Work-Office-Home-offices (WOHO), education facilities and lifestyle amenities to create a seamless and vibrant work-live-play-learn environment for its tenants and the surrounding community. With its completion, OneHub Saigon will be well-placed to serve the needs of Vietnam’s thriving industries and business communities.

Ascendas-Protrade Singapore Tech Park - Vietnam

Ascendas-Protrade Singapore Tech Park (APSTP) is set within the 1,350-hectare integrated township of An Tay Industry and Service Complex in Binh Duong Province. It is located 40km from both Ho Chi Minh City and Tan Son Nhat International Airport.

Specially designed to integrate complete clusters of business infrastructure with a host of amenities within the township, APSTP offers a vibrant work-live-play-learn industrial hub that blends high quality industrial space and reliable solutions with a conducive business lifestyle. Spread over 500-hectares of land, APSTP offers an excellent range of options for companies in electronics, precision engineering, IT, pharmaceutical, food and beverage and general industries.

Besides offering a flexible choice of industrial spaces, the APSTP team also provides integrated customer services. This includes supporting our customers in obtaining their Investment Certificate, recruiting talent and assisting them in their daily operations, thereby enabling our customers to focus on their core business.

Contributed by: Ascendas-Singbridge Pte LtdAsia’s leading provider of sustainable urban solutions

Access ASEAN – Indonesia

Liberalisation of Foreign Direct Investments in Indonesia

As a fast-growing economy in South East Asia, Indonesia has increasingly seen more foreign direct investments (“FDIs”) over the years, with a vast majority of FDIs coming from Singapore as recently reported by the Indonesian Investment Coordinating Board (Badan Koordinasi Pemanaman Modal) (“BKPM”). BKPM has responded perceptively to this buoyant investment climate in reinventing its regulations and policies to not only adapt to, but actively encourage, the influx of FDIs.

The ‘Big Bang’ Liberalisation Market entry is the focal point of BKPM’s policy development and reinvention. As Indonesia’s gateway for FDIs, BKPM has undergone certain streamlining processes and formulated other innovative and attractive schemes since President Joko Widodo’s announcement of the ‘Big Bang’ investment policy in February this year.

Investment friendly infrastructureThe direct appointment of the Chairman of BKPM by the President has seen the integration and improvement of the One-Stop-Service (Pelayanan Terpadu Satu Pintu) and the innovative 3-Hour Investment Licencing Service. As a significant improvement to the One-Stop-Service, BKPM headquarters in Jakarta now hosts representatives from over 20 local ministries and other governmental authorities. This allows for greater coordination between the authorities and has the added benefit of convenience for potential investors who may now make their respective inquiries at one location.

The 3-Hour Licencing Service is aimed at attracting large-scale investments into Indonesia. It provides a total of 8 basic licences alongside a letter which informs investors of available land to construct their intended projects. Potential investors must satisfy the minimum investment amount of Rp.100 billion or the employment of at least 1,000 local workers in order to enjoy this fast-track service. BKPM has stated that this 3-Hour Licencing Service provides potential investors the following 3 certainties:

(i) Certainty to start a business;

(ii) Certainty to work (work permits for a maximum of 10 foreigners included); and

(iii) Certainty to import capital goods.

In addition, there is also an incentive scheme colloquially termed ‘Direct Construction’, whereby investors may obtain their investment licence, survey and acquire and/or lease land within 14 selected industrial parks allocated by the Indonesian Government and begin construction without the need to obtain the relevant construction permits. This is a corollary of the current administration’s drive towards infrastructural development, which is one of the 5 priority sectors proclaimed by BKPM; others being agriculture, maritime industry, manufacturing and tourism.

Liberalising protectionist policiesThe Indonesian Negative List (Daftar Negatif Investasi) (“Negative List”) imposes limits on foreign ownership of FDI companies based on their respective business sectors. The latest Negative List (which took effect on 18 May 2016 and replaces the previous Negative List of 2014) is relatively more investor-friendly by lifting previous foreign ownership restrictions within various business sectors such as e-commerce, film, food and beverage, transport infrastructure and cold storage facilities, amongst others.

Developing Special Economic ZonesCloser to Singapore, efforts have been made to convert certain areas in Batam, which is currently a free trade zone, into a Special Economic Zone. On 29 February 2016, the Presidential Decree No. 8 of Year 2016 was enacted to establish the National Council of Free Trade and Bonded Zone of Batam which is currently looking into this possible development.

Setting up your business in IndonesiaForeign investors may either set up a foreign investment company (Penanaman Modal Asing) (“PMA Company”) or establish a representative office in Indonesia. Subject to the limitations under the Negative List, the PMA company can be 100% foreign owned or be a joint venture with an Indonesian partner with the foreign investor holding up to the maximum foreign ownership percentage allowed under the Negative List. The PMA Company can fully commence business activities upon obtaining all necessary licences, including the Business Licence (Izin Usaha) and any applicable technical licences. On the other hand, a representative office may only conduct marketing and promotional activities and all sales must be referred back to its overseas head office.

In determining the right strategy for market entry, it is of paramount importance to understand the applicable Indonesian laws and regulations (particularly any restrictions under the intended line of business) to avoid potential legal complications.

PMA CompanyForeign investors looking to set up a PMA company must invest more than Rp.10 billion (excluding the value of any land and/or buildings), with a minimum paid-up capital of Rp.2.5 billion which may be deposited in cash or in kind. This is subject to BKPM’s discretion to put in place higher minimum requirements for certain lines of business.

The main licences and permits required to establish a PMA company include the principle licence (Izin Prinsip), approval from the Ministry of Law and Human Rights and the Business Licence (Izin Usaha).

Representative officeWhile there are different types of representative offices, the most commonly established is the Foreign Trade Representative Office (“FTRO”). FTROs are a popular option for foreign investors to explore and discern their respective potential opportunities in the Indonesian market. In order to set up an FTRO, it is necessary to obtain a Permanent Representative Office Licence (SIUP3A) and to appoint a chief representative who may be an expatriate from the head office.

ConclusionWith the recent developments in Indonesia’s foreign investment policies, there is much excitement and promise for businesses in the region looking to participate and succeed in its fast-growing economy. According to BKPM reports, the Indonesian government’s initiatives in recent years have contributed towards Indonesia’s investment realisation growth of 17.8% year-on-year, with USD 43.6 billion reported in 2015. In light of the new ‘Big Bang’ liberalisation of FDIs, an additional 45% rise in the growth rate can be expected in the coming years. As with all new developments however, one would be well advised to be prudent and seek proper advice before navigating the Indonesian investment landscape.





Highlights of Manpower Law in IndonesiaManpower in Indonesia is primarily regulated by Law No. 13 of Year 2003 of the Republic of Indonesia concerning Manpower (“Manpower Law”). It focuses on ensuring fairness and equality within the workforce. It governs not only professional ethics in the workplace but also the welfare of workers, including the provision of social security schemes such as BPJS (Badan Penyelenggara Jaminan Sosial) and the administration of labour unions.

The Manpower Law aims to provide protection to workers by regulating the employer-employee relationship. This includes requiring specific terms and conditions to be included in the employment contract and prescribing set methods of termination of employment.

It should be noted that certain employment law concepts typically found in common law jurisdictions such as Singapore are not applicable in Indonesia. Employment contracts in Indonesia must be governed by Indonesian law and executed in Bahasa Indonesia (in addition to any other foreign language). If there are any differences between the Bahasa Indonesia version and the foreign language version, the Bahasa Indonesia version shall prevail.

Employers may also outsource for external workers in respect of certain non-core business activities (namely, cleaning, security, food catering, transport for workers and auxiliary business activities in the mining and oil sectors), provided that they fulfil the applicable requirements under the Manpower Law.

In addition, the Manpower Law distinguishes between permanent and contract workers. A permanent worker will have uninterrupted and continuous employment not bound by a timeframe, whereas a contract worker will be employed for a fixed period of time.

Contract workers are only permitted under 4 categories of work, namely:

(i) Work to be performed and completed at one go or work which is temporary by nature;

(ii) Work whose completion is estimated at a period of time which is no longer than 3 years;

(iii) Seasonal work; or

(iv) Work that is related to a new product, a new activity or an additional product that is still in the experimental stage or try-out phase.

Working hours, minimum wage and bonusesIn general, the maximum working hours for employees under the Manpower Law are either:

(i) 7 hours a day, 40 hours a week for 6 work days in a week; or

(ii) 8 hours a day, 40 hours a week for 5 work days in a week.

Employees who are asked to work beyond these hours must agree to do so voluntarily and may submit claims for overtime pay. The maximum numbers of overtime hours under the Manpower Law are 3 hours in a day or 14 hours in a week. While other arrangements exceeding such limits may be mutually agreed, employers are expected not to impose working hours which contradict the spirit of the Manpower Law. The above maximum working hours and overtime pay is not applicable for employees holding high level positions falling under the category of a “thinker, planner, implementer or controller”.

Minimum wage requirements differ among the various Indonesian cities. In Jakarta, the monthly minimum wage presently stands at approximately Rp.3, 100,000 and is subject to annual review by the local government. Each city will also have its own formula for calculating the applicable minimum wage, with such formula also being subject to annual review

by the local government which must be conducted in accordance with the central government’s regulations.

In addition to the minimum wage, employees are entitled to receive certain mandatory bonuses under the Manpower Law, such as the religious holiday bonus (Tunjangan Hari Raya) for religious holidays recognised under the Constitution of Indonesia.

Termination of employmentTermination of employment is generally discouraged under the Manpower Law. Employers are expected to take all efforts to prevent such termination, including conducting negotiations with the employee. Where termination cannot be avoided, the procedures under the Manpower Law will have to be adhered to.

There is no statutory requirement to give notice of termination and employment agreements cannot stipulate a contractual notice of termination. Instead, the Manpower Law provides that if an employee commits any wrongdoing, his employer may terminate his employment after issuing up to 3 warning letters (with at least 6 months between each issuance).

In the event of termination, employees are entitled to seek compensation from the employer which includes severance pay, reward-for-years-of-service pay and recompense for unutilised entitlements. Compensation will be calculated based on the applicable formulae under the Manpower Law which take into account factors such as the length of service of the employee and any outstanding annual leave for permanent employees. The circumstances of termination are also relevant (such as if the employment was terminated as a result of a take-over or due to the employee’s misconduct).

Foreign workersThe Ministry of Manpower (“MOM”) and the Directorate General of Immigration under the Ministry of Law and Human Rights are mainly responsible for regulating the employment of foreign workers in Indonesia, including the appointment of foreign directors and commissioners.

Foreigners will require work permits from MOM in order to work in Indonesia or to be a director or commissioner of an Indonesian company (even if no salary is being drawn by the director or commissioner). In considering applications for work permits, local Governmental authorities will usually consider the foreigner’s skills, expertise and knowledge, as well as his or her ability to contribute towards developing the domestic workforce.

The Minister of Manpower Regulation No. 16 of Year 2015 on the Procedure for the Utilisation of Foreign Manpower (as amended by Minister of Manpower Regulation No. 35 of Year 2015) currently provides that foreign directors and commissioners who are not domiciled in Indonesia no longer require a work permit. However, as a practical matter, directors and commissioners may still require a work permit to sign external documents on behalf of the company (such as commercial agreements and bank forms) or act as bank signatories even though they are domiciled outside of Indonesia.

The key documents for foreigners to work and stay in Indonesia are as follows:

(i) RPTKA (Rencana Penggunaan Tenaga Kerja Asing)

The RPTKA is the employer’s proposal to MOM for its utilisation of foreign manpower. MOM must approve the RPTKA before the employer may start employing foreign workers. In general, the RPTKA is valid for up to 1 year and may be extended.

(ii) IMTA (Izin Mempekerjakan Tenaga Kerja Asing)

The IMTA is the employment permit of the foreign worker and will contain his personal employment information, including details of his employer (as the sponsor), designation and work address. In general, the IMTA is valid for up to 1 year and may be extended.

(iii) KITAS (Kartu Izin Tinggal Terbatas)

The KITAS is a limited stay permit card that allows the foreign worker to stay in Indonesia (after the IMTA has been obtained). In general, the KITAS is valid for up to 1 year and may be extended.

Under Government Regulation No. 103 of Year 2015 on Ownership of Property by Foreigners Residing in Indonesia, a foreigner who has a KITAS can buy and own property in Indonesia under the Right to Use (Hak Pakai) title for 30 years (extendable for 20 years and renewable for a further 30 years thereafter).

Future legal landscapeWhile the manpower landscape in Indonesia is largely regulated by the Manpower Law, recent regulations have strived to liberalise the manpower regime with a view of attracting foreign direct investments into Indonesia. This is a positive step towards boosting Indonesia in the global competitive market.

Contributed by: Angeline Suparto Law Corporation (in conjunction with its Jakarta associated office)


CONTRIBUTORS

SINGAPORE BUSINESS FEDERATIONALIGN GROUP

About Align Group

Align Group is the brain behind Singapore’s first National Workplace Happiness SurveyTM, and has been single-minded in promoting workplace happiness across Asia through HR consultancy, training, and research solutions. We combine the scientific rigour of analytics with the practice of positive psychology in people management, enabling our clients to build great teams and workplaces that are sustainable, engaged, happy, and productive.

Our main solutions include:- HR Business Partnership (Outsourcing), for SMEs - HR Starter Service, for start-ups or foreign entities setting

up their base in Singapore- Workplace Happiness Survey and Training- Culture Diagnosis and Employer Branding

Align Group is also an appointed service provider of HRSS by SPRING Singapore, and worked with various government bodies in shaping the HR landscape in the country.

Tel: +65 6222 [email protected]

HR Consultancy & Advisory:www.aligngoc.com

HR Outsourcing & Shared Services:hrss.com.sg

Workplace Happiness Survey & Interventions:workplacehappiness.sg



Regional Lawyers



SINGAPORE BUSINESS FEDERATIONANGELINE SUPARTO LAW CORPORATION

About Angeline Suparto Law Corporation

Angeline Suparto established Angeline Suparto & Company and its Jakarta associated office in 2001. The firm was corporatised and renamed to Angeline Suparto Law Corporation (ASLC) in November 2011 and is closely associated with Dau & Tuah, a law firm in Jakarta. In June 2016, ASLC became associated with Nixon Peabody LLP, a Global 100 licensed law practice in the United States of America with presence in many cities worldwide, including a Representative Office in Singapore.

ASLC, in conjunction with Dau & Tuah, provides one-stop legal solutions and services to its clients, both locally and internationally. As a boutique firm specialising in cross border transactions in Asia, the main practice areas of ASLC include Indonesia and Singapore investment advisory and set-up, private equity, joint ventures, mergers & acquisitions, corporate restructuring, franchising, real estate, regulatory, employment and market entry.

ASLC’s clients include high net worth individuals, multinational corporations, public listed companies, government-linked companies, embassies, statutory boards, and small and medium enterprises with high growth potential. We represent key players from the region and the international arena including Singapore, Indonesia, Malaysia, China, Hong Kong, the EU and the United States of America.

Our Managing Director, Angeline Suparto, is qualified to practise in Singapore, Hong Kong, England and Wales and the Australian Capital Territory. She started practising law in 1985 and has extensive experience in advising clients on the legal aspects of investments and doing business in Indonesia and Singapore. She is also actively involved in legal due diligence exercises, cross border corporate transactions (such as joint ventures and mergers & acquisitions) and dispute resolution. Angeline is based in Singapore but travels frequently to Jakarta on client matters and meets with Indonesian agencies to keep abreast of the country’s legal and economic developments. She is also a regular speaker and panellist at seminars

16 Raffles Quay#20- -04 Hong Leong BuildingSingapore 048581

Contact Person: Angeline Suparto,Managing DirectorTel: +65 6223 3638Email: [email protected]

SINGAPORE BUSINESS FEDERATIONASCENDAS

About Ascendas-Singbridge Group

Ascendas-Singbridge is Asia’s leading provider of sustainable urban solutions. With the combined capabilities of Ascendas and Singbridge, Ascendas-Singbridge is uniquely placed to undertake urbanisation projects spanning townships, mixed-use developments and business/industrial parks. Ascendas-Singbridge has projects across 29 cities in Asia, many of which are in collaboration with local authorities and partners with complementary capabilities.

Jointly owned by Temasek and JTC Corporation (JTC) through a 51:49 partnership, Ascendas-Singbridge is the asset and investment holding arm of the integrated urban solutions platform formed by Temasek and JTC to capitalise on urbanisation trends in the region.

1 Fusionopolis Place, #10-10, Galaxis,Singapore 138522Tel: +65 6508 8686Email: [email protected]: www.ascendas-singbridge.com

and forums organised by various government agencies, chambers of commerce and business associations in Singapore, Indonesia, China and Hong Kong.



SINGAPORE BUSINESS FEDERATIONCOLIN NG & PARTNERS

About COLIN NG & PARTNERS LLP

Established in 1988, Colin Ng & Partners LLP (CNP) is a full-service law firm with a talent for cross-border business. With close to 100 staff, including 50 lawyers, and a strong network of international contacts, the firm has the capability to deliver legal solutions in Singapore and beyond.

We make knowing our clients’ businesses is our business and pride ourselves in providing innovative, yet practical and valuable advice.

CNP is consistently recognised as being amongst the top law firms in Singapore by leading legal publications such as Asia Pacific Legal 500, International Financial Law Review 1000, Chambers and Partners and AsiaLaw Profiles.

We focus on business involving Asia, in particular Cambodia, China, Hong Kong SAR, India, Indonesia, Japan, Laos, Malaysia, Mongolia, Myanmar, the Philippines, Vietnam as well as Singapore. Our lawyers are qualified in a number of jurisdictions as well as in Singapore and advice on cross-border transactions under English law.

The firm is a member of Interlaw, a network of high quality corporate, commercial independent law firms located in more than 100 cities worldwide.

With strong contacts in all the foreign jurisdictions where our clients do business, CNP is well-placed to meet the ever increasing need for practical and effective legal services in Singapore and for cross-border business in Asia and beyond.

Core Products/Services

Our area of expertise include banking & finance, capital markets, corporate & M&A, commercial, employment, funds, insolvency & restructuring, intellectual property & technology, litigation & arbitration, private clients, real estate, regulatory & compliance and regional cross-border transactions.

36 Carpenter StreetSingapore 059915

Tel: +65 6323 8383Fax: +65 6323 8282Email: [email protected]

Contact Person: Lisa Theng,Managing PartnerTel: +65 6349 8711

Email: [email protected]: www.cnplaw.com

SINGAPORE BUSINESS FEDERATIONFMG CORPORATE SERVICES PTE LTD

About FMG Corporate Services Pte Ltd

FMG Corporate Services Pte Ltd (FMG) provides Singapore and foreign investors with one-stop professionalism, convenience and peace of mind to set up and do business in Singapore. As one of Singapore’s largest corporate secretarial services providers, we take care of the non-core but critical corporate compliance matters for you, so you may focus on your business.

We have more than 20 years’ experience specialising in formation of entities, as well as providing corporate secretarial & compliance and advisory services to businesses and companies. Our wide experience extends to acting as company secretaries to public companies, to help them meet reporting and disclosure requirements promptly.

Our expertise covers the following areas: • Formation of Entities• Corporate Secretarial & Compliance (such as advising

clients on corporate secretarial best practices and corporate governance, as well as acting as the de facto in-house company secretary for Singapore OHQs and RHQs in managing their set-up, structures and statutory compliance globally)

• Advisory (such as application for business licences, assistance in pre-IPO restructuring work and client due diligence support work)

8 Wilkie Road,#03-01 Wilkie EdgeSingapore 228095Tel: +65 6533 7600Fax: +65 6594 7855Email: [email protected]

Contact Person: Maureen Low, DirectorTel: +65 6594 7817Email: [email protected]

Website: www.FMG.com.sg



SINGAPORE BUSINESS FEDERATIONFT CONSULTING

About FT Consulting

FT Consulting is a strategic business consulting firm headquartered in Singapore with a network of offices and strategic partners in key Asian cities. Our focus lies in IP management, franchising, licensing and branding.

With in-depth understanding of Singapore and the regional markets, we have helped both big and small companies to successfully grow their businesses for the past 25 years, since 1991. We do this by using our proprietary FBE™ methodology, taking a 360 degrees view of the business’ needs and challenges: -

• Fundamentals We help clients to gain perspective on the current

state of their business model, intellectual property management, operating systems and supporting infrastructure. This process helps clients to identify and manage the weaknesses and gaps in their fundamentals, and also to clarify the valuable assets that are driving the business forward.

• Branding We help clients to crystallise what their brands truly

stand for and to express the desired brand image appropriately to their target audience.

• Expansion We help clients to determine the best ways of growing

their business through expansion strategies that are found on their intellectual assets. In many cases, this involves franchising a quality product or service concept, a proven business model, or licensing of a unique technology.

Our clientele includes more than 400 companies worldwide, covering various industries such as food & beverage, retail, education, hospitality, logistics, technology and industrial services.

100 Cecil Street #12- -01The Globe Singapore 069532Tel: +65 6222 8511

[email protected]

SINGAPORE BUSINESS FEDERATIONGREENHUB SUITED OFFICE

About GreenHub Suited Offices

Conceived since 2012 in Singapore, GreenHub provides not just your average serviced office, but the tranquil, green environment conducive for the success of the born global firm, companies with the capability to instantly internationalise from inception. It is an environment where creativity and thought strives. An environment where one can concentrate on running one’s business and not concern oneself with the unnecessary. Put simply, an environment where business meets innovation and convenience.

Here at GreenHub, we are driven by our belief that the provision of a suitable environment is crucial for our customers’ success. This is manifested through our service philosophy, innovative environment, and result-driven purpose and has allowed us to provide the eco-system needed to leapfrog global companies, so that clients can focus solely on growing and expanding their business both locally and internationally. Currently, GreenHub steps up its presence in Singapore, Jakarta and other ASEAN countries.

Headquartered in Singapore, we have centres strategically situated at the fringe of Singapore’s Central Business District; it is accessible by Mass Rapid Transit (MRT) as well as various major highways. GreenHub is an ideal environment for companies looking to set up their corporate headquarters or temporary work spaces in Singapore. Enjoy the convenience while yearning for a conducive and unreserved tranquil business environment.

GreenHub Suited Offices currently has two overseas branches in Jakarta. Our first branch is located in Kuningan, at the fringe of Sudirman’s business district at Kota Kasablanka. Our latest addition is Plaza Marein, a Class A office building situated in the heart of CBD area, Jalan Jenderal Sudirman.

Level 2, Unit 8, 10 Raeburn Park,Singapore 088702Tel: +65 6692 8022 Fax: +6692 8001Email: [email protected]: www.greenhub.com.sg



SINGAPORE BUSINESS FEDERATIONHAWKSFORD

About Hawksford

Hawksford is an international provider of corporate, private client and funds services focused on thinking beyond tomorrow. Our service philosophy is about guiding you through the steps of starting, managing and growing your business in Asia.

We have expertise in a wide range of administration and structuring solutions, drawing on a global network of leading professionals and advisors enabling you to make the most out of your business interests.

Our team consists of highly experienced professionals with extensive experience in legal, financial, tax, corporate and regulatory frameworks.

Specifically, we can provide services for:

1) Business establishment • Advisory and incorporation of a new company

Registration of subsidiaries, branches and representative office of overseas companies

• Corporate secretarial services • Bank account opening assistance • Business license applications

2) Tax & accounting • Bookkeeping and preparation of year-end financial

statements • Payroll management • Corporate and personal tax advisory, return

preparation and filing

3) Immigration advisory & applications • Citizenship • Permanent residence • Employment pass • Dependent pass • Entrepreneur pass • Consultation and advisory • Other work passes

16 Raffles QuayHong Leong Building #33-02,Singapore 048581

Contact Person: Jacqueline Low,Chief Operating OfficerTel: +65 6222 7445Email: [email protected]

Website: www.guidemesingapore.com

4) Other servicesWe provide management consulting services to clients ranging from contracts and agreements, IP registration, human resources, virtual/service office and meeting room rental.

SINGAPORE BUSINESS FEDERATIONKAIDEN GROUP

About Kaiden Group

Kaiden Group (‘Kaiden’) provides a one-stop corporate service solutions for all businesses.

Kaiden has the expertise in providing company set ups predominantly in the Asia Pacific regions such as Singapore, Hong Kong, Malaysia, and offshore tax havens such as British Virgin Islands, Seychelles, to name a few. Our team of professionals have good knowledge on taxation advisory on which jurisdictions suits your business needs best.

All business setups will be professionally advised on the tax implications. In additional to corporate and tax services, Kaiden also has a stronghold on other services, such as accounting and compliance support, audit and assurance, and also human resource and payroll outsourcing. We are also able to conduct short seminars on various topics related to our core business and customize each seminar as per requested.

Our Company’s philosophy is to provide a One Stop Service Solution for our clients and professional intermediaries’ businesses needs which is pivotal to their success.

Range of servicesAccounting: • Accounting/Bookkeeping• Setting up accounting system for bookkeeping• Preparation of financial reports in accordance with the

FRS Standards and generation of Director’s report• Performing business analysis• Conversion of financial statements into XBRL for

Submission to ACRA‘s BIZFIN filing portal• Billing services

Tax Compliance:• Tax advisory on corporate and personal income tax• Offshore tax compliance• Tax planning & advisory on company structures• Preparation of tax computations & filing of tax returns

computations for companies and individuals• Withholding tax preparation and submission• GST registration & PIC claims, preparation and

submission of returns

Office: Kovan City, 203 Hougang Street 21 units #03-73 & #04-93, Singapore 530203

Kaiden Advisory Sdn. Bhd. – Malaysia Office:No. C-3-3, Pusat Komersial Bayu Tasek(The Lakefront), Persiaran Southkey 1,Kota Southkey, 80150 Johor Bahru,

Website: www.kaidengroup.com.sgTel: (65) 6844 7170 – Singapore(6011) 2862-1743 – Malaysia

• Corporate secretarial & fiduciary compliance• Onshore and offshore company set ups• Company secretarial services• Provision of nominee director, shareholder and

secretary• Certification of documents • Bank account opening• Anti-money laundering compliance

Audit and assurance:• Statutory audit• Internal audit• Special purpose audit engagements• Review and AUP engagements

HR and payroll outsourcing:• Customization of HR manual• Advisory on Compliance with the Singapore’s

Employment Act and Ministry of Manpower• Leave administration• Monthly Payroll processing• Employment and Dependent Pass application and

renewal

Other services• Valuation• Due Diligence• Financial Management



SINGAPORE BUSINESS FEDERATIONLHN GROUP

About LHN Group Pte Ltd

Established as a Space Resource Optimisation Company in 1991, LHN Group (‘LHN’) focuses on creating productive environments for Small and Medium Enterprises (SMEs) and Born-global Companies. Taking unused and under-utilised Industrial, Commercial and Residential spaces, we enhance and transform them into leasable space.

LHN further add values by managing and coordinating the building, security and facilities management activities, providing tenants with a safe and conducive environment to work in and achieve maximum returns from their business. As part of our space optimisation business, we also provide professional car park management services through intelligent use of technology to manage car parks in the compound of our properties and outside our properties for government entities and private enterprises.Additionally, LHN’s vast experience at managing a diverse range of properties has also produced a company well-versed in the art of space optimisation for any space. As such, all spaces leased out by LHN have been carefully developed to bring about maximum value for tenants.

Today, we managed spaces with a total net lettable area (NLA) of over 4.5 million square feet.

Guided by its core values of prudence, efficiency and accountability, LHN follows a simple maxim – to ensure better rental value for tenants by only leasing out spaces that are productive and can be fully utilised.

Going forward, LHN remains committed to being a space resource optimisation company that generates value and is driven by technology. LHN recognises that its success is an outcome of its tenants’ success. As such, it will continue to make every effort to ensure that all value is extended to them.

Our other business groups include Facilities Management Group and Logistics Group.

10 Raeburn Park #02-18, Singapore 088702Tel: +65 6578 9966 Fax: +6367 2163Email: [email protected]: www.lhngroup.com

SINGAPORE BUSINESS FEDERATIONORIEL

About Oriel

Oriel Management Consulting Pte Ltd (“Oriel”) is a global consulting firm based in Singapore right in the middle of the great ASEAN market space.

Oriel specializes in providing guidance to business entrepreneurs in the areas of operational productivity enhancements & capacity building to enable sustainable rapid business expansion, innovative business and project financing programs, product or service innovation & commercialization, international market expansion via agency rights & distributorship, franchising, licensing, joint-ventures, mergers and acquisitions.

Oriel’s clients came from various sectors comprising Aerospace, Healthcare, Marine and Oil & Gas, Commodity Trading, Education, Retail and Food & Beverage, Transport & Logistics as well as Telecommunications, Media & Technologies. Oriel currently consults clients from Europe and the USA as well as Japan, Korea and the ASEAN region.

Oriel’s access to strong global network country resident business partners, private equity funds and banks as well as alternative sources of funding such as crowdfunding, and our in-depth understanding of their requirements has enabled us to assist our Clients developed customized roadmap to achieve significant earnings growth, procure the necessary financing, and hand-hold them throughout the journey so that they accomplish the various milestones set out in the roadmap.

Blk 809 French Road#05-152 Kitchener ComplexSingapore 200809

Contact Person: Wee Chin ChuanDesignation: Executive DirectorEmail: [email protected]: +65 6291 4854

Contact Person: Serin TanDesignation: DirectorEmail: [email protected]: +65 6291 4854

Website: www.orielgroup.com



SINGAPORE BUSINESS FEDERATIONRSM

Country & Industry Specialisations • China Practice• Financial Services• Food & Beverage• Healthcare• Industrial Practice• Logistics & Transportation• Minerals, Oil & Gas• NPO Practice• Private Equity Group• Professional & Business Services• Real Estate & Construction• Retail• Indonesia Desk• Japan Desk

About RSM

RSM in Singapore is a member of RSM International, the world’s 6th largest network of independent public accounting firms providing assurance, tax and business advisory services, with a global reach of over 760 offices in 120 countries. We serve internationally active businesses and companies aspiring to go global.

In addition, we provide business solutions for our clients’ non-core yet important areas of their business so that they can focus on the core revenue-generating aspects. Through our business solutions division, under our Stone Forest group of companies, we continue to support our clients in their expansion plans in Singapore and globally.

We are the largest accounting, business advisory and solutions group outside the Big 4 in Singapore, with a total staff strength of over 950 in Singapore and 320 in Shanghai, Beijing, Suzhou, Shenzhen, Chengdu and Hangzhou.

We assist foreign investors keen on investing in this region by:• Hand-holding and assisting them to manage, negotiate

and enter the desired markets• Providing advice on regulatory, financial and tax issues• Facilitating the process of setting up business here

Core Products/Services• Cross-border Investment Advisory• International Tax Advisory• Business Solutions – Accounting & Advisory, Business

Process Outsourcing, Executive Search & Placement, Formation, Compliance & Advisory, IT Solutions & Technology Consulting, Payroll Outsourcing & HR Advisory

• Corporate Advisory• Risk Advisory• Mergers & Acquisitions Advisory• Public Accounting

8 Wilkie Road, #03-08 Wilkie EdgeSingapore 228095Tel: +65 6533 7600Fax: +65 6538 7600Email: [email protected]

Contact Person: Valencia Teo, Director, Group Marketing & CommunicationsTel: +65 6594 7813Email: [email protected]

Website: www.RSMSingapore.sg

SINGAPORE BUSINESS FEDERATIONSTARHUB

About StarHub

StarHub is Singapore’s fully-integrated info-communications company, offering a full range of information, communications and entertainment services for both consumer and corporate markets. StarHub operates a mobile network that provides 4G, 3G and 2G services. It also manages an islandwide HFC network that delivers multi-channel pay TV services (including HDTV, Internet TV and on-demand services) as well as ultra-high speed residential broadband services. StarHub operates an extensive fixed business network that provides a wide range of data, voice and wholesale services. Over Singapore’s fibre-based Nationwide Broadband Network, StarHub offers a broad range of home and business broadband plans, as well as commercial and residential IPTV services.

Launched in 2000, StarHub has become one of Singapore’s most innovative info-communications providers, and the pioneer in ‘hubbing’ - the ability to deliver unique integrated and converged services to all its customers. StarHub, listed on the main board of the Singapore Exchange since October 2004, is a component stock of the Straits Times Index, the MSCI Singapore Free Index, the SGX Sustainability Leaders Index and the SGX Sustainability Leaders Enhanced Index.

67 Ubi Avenue 1#05-01 StarHub GreenSingapore 408942Tel: +65 6825 [email protected] www.starhub.com/business


SINGAPORE BUSINESS FEDERATIONUSEFUL WEBSITES

About Singapore

Singapore infomap www.singapore.sgVisit Singapore www.visitsingapore.com.sgSingapore Tourism Board www.stb.gov.sgSingapore Online Street Directory www.streetdirectory.comChangi Airport Singapore www.changiairport.com.sg

Singapore Government

Singapore government online portal www.gov.sgMinistry of Trade and Industry www.mti.gov.sgMinistry of Foreign Affairs Singapore www.mfa.gov.sgOnline application of immigration visa and passes www.ica.gov.sgOnline government services www.ecitizen.gov.sgMonetary Authority of Singapore www.mas.gov.sgEconomic Development Board www.edb.gov.sgInternational Enterprise Singapore www.iesingapore.gov.sgSPRING Singapore www.spring.gov.sg

Business information

Singapore Business Federation www.sbf.org.sgEnterprise One www.enterpriseone.gov.sgSingapore Customs www.customs.gov.sgSingapore Free Trade Agreements www.fta.gov.sg

Business Statistics and Directories

Singapore Business Directory www.eguide.com.sgSingapore Commercial Directory www.yellowpages.com.sgSingapore Department of Statistics www.singstat.gov.sg

Manpower

Ministry of Manpower www.mom.gov.sg

News and Media

AsiaOne www.asiaone.coChannel News Asia www.channelnewsasia.comThe Business Times www.thebusinesstimes.com.sgThe Straits Times www.thestraitstimes.com

WE CAN HELPleverage on the expertise ofAccessAsia@Singaporestrategic partners for your start-up or expansion into the region.

CORPORATE ADVisory

Banking & Finance

legal

human capital business space

business matching

take your first BIG step into asia with us

[email protected]

www.sbf.org.sg/ACCESSASIA

TELECOMMUNICATIONS

intellectual property & Branding

Regional Lawyers



www.sbf.org.sg/Business-Expansion/AccessAsia

Our Services COMPANY

FORMATION TAX &

ACCOUNTING IMMIGRATION EASY

SWITCHBUSINESS LICENCES

START UP ASSISTANCE

Your business goals realisedAt Hawksford Singapore, our team consists of highly experienced professionals with extensive experience

in legal, financial, tax, corporate and regulatory frameworks. We know that our reputation rests on delivering

impeccable service and we take great pride in building long-term relationships. We do this by ensuring that

you receive the highest quality of service each and every time you interact with us.

We understand that our clients look for flexible and impeccable client service. We blend experience and expertise

with enthusiasm and entrepreneurialism, ensuring our clients have confidence in our capability and trust in our team.

Jersey | British Virgin Islands | Cayman Islands | Hong Kong

New Zealand | Singapore | United Arab Emirates

Hawksford Singapore, 16 Raffles Quay #33-02, Hong Leong Building, Singapore 048581

E [email protected] | T +65 6222 7445

Hawksford Singapore PTE LTD | UEN No.: 200823070C | EA Licence No.: 10C3284

11008 HF SINGAPORE ADVERT H.indd 1 07/07/2016 08:46