fbpx
What Kind of Services Do Accounting Firms Provide?

What Kind of Services Do Accounting Firms Provide?

Businesses in Singapore are required to adhere to accounting regulations set by ASC or the Accounting Standards Council. Compliance with accounting standards is important to ensure transparency and reliability of a business’ financial information. Transparency and reliability of financial information enable comparability of global financial data and smooth functioning of international capital markets. The increasing number of businesses in Singapore is another compelling reason for entities to adhere to a uniform financial standard.

As a business, it can be time-consuming, exhausting and even downright intimidating, to maintain your seemingly infinite financial records. Hiring an accounting firm is one of the best ways to manage your business’ financial data. With a reputed accounting service provider, you will have an expert to take care of the financial aspects of your business. You can focus more on your core business knowing that your financial matters will be taken care of duly in compliance with the law. An accounting firm will also ensure a robust accounting system, which will give you a reliable and actionable financial base to make business decisions.

Expertise of an accounting firm is the key to your business success. With Mighty Glory Corporate Solutions, you get a wide range of accounting services delivered by a team with substantial industry experience. We offer a deposit-free accounting service with complete client confidentiality and a transparent fee structure.

If you are in search of a professional accounting firm, then you may want to explore the services such firms offer. Here are some types of services that an accounting firm usually offers business:

Accounting and GST Return

ACCOUNTING AND GST RETURN

Businesses are required to maintain a record of all their transactions to comply with Singapore’s statutory regulations. Details of transactions, sources of business funds, bank statements, employee payroll, and other financial aspects connected with the business need to be recorded. Maintaining clear source documents detailing all transactions is vital.

According to IRAS (Inland Revenue Authority of Singapore), a business’ accounting system must retain financial reports and related documents (collectively, financial records) pertaining to a Year of Assessment (YA) for a period of 5 years from the relevant YA. For example, businesses with the tax basis period from
1 January 2018 to 31 December 2018 (YA 2019) need to retain their financial records until 31 December 2023. The same applies to businesses with non-December financial year-end. If the tax basis period is from 1 October 2018 to 30 September 2019, the business has to retain its records till 31 December 2024. Failure to adhere to this IRAS directive can result in companies facing penalties and / or legal suits.

A professional accounting service provider can help to maintain an efficient accounting system depending on the type of your business. For example, if your business is a sole proprietorship, then the firm handles general ledger and basic account-keeping. Accounting principles for maintaining partnership accounts are similar to that of sole proprietorship. The only difference is that a partner’s income sourced by the partnership is declared in the personal income tax account of the partner, on the basis of his profit sharing ratio.

If your business is a sole proprietorship or partnership, it would be advisable to go for an accounting firm that offers personal income tax filing services as part of its accounting service. At Mighty Glory Corporate Solutions, we do offer personal income tax filing services for sole-traders and partners. We will however need information on other sources of income, such as their investments, rental inflows, etc.

In case of GST-registered businesses, the account preparing and tax-filing processes can be elaborate. An in-depth theoretical and practical knowledge of GST and the associated legal processes are crucial to maintaining a solid accounting system.

GST (Goods and Services Tax) is a consumption tax that is levied on almost all goods and services supplied within Singapore, with certain exemptions.

If you are a business with taxable turnover of more than $1 million, then you must register your business for GST. The tax is calculated according to the value of products and services which your business offers and fall under the category of taxable supplies in the GST Act.

Your business may sometimes be exempted from GST even though your turnover exceeds $1 million. This is when your business’ “prospective view” does not exceed $1 million, that is, you do not expect your business to make more than $1 million turnover in the next 12 months. You need to provide valid documents to support your statement. Late payment or non-payment of GST attracts heavy penalties in addition to business disrepute.

Computing your business’ taxable turnover is a key component of GST calculation. The process varies depending on whether your business is a sole proprietorship, partnership or a private limited company. An accounting firm can help you remove the stress off GST filing with its domain expertise.

As a business maintaining its professional standards, it becomes your responsibility to maintain your accounting system to the required standards. An accounting service provider enables you to maintain a failsafe and reliable accounting system.

Mighty Glory Corporate Solutions, we help GST-registered businesses maintain accurate records and make GST submissions in a timely manner. Even if your financial accounts are managed by an in-house team, our experts can help you derive relevant information for GST submission. Our non-obligation to charge GST on the service fees benefits non-GST-registered companies and individuals.

Financial Reporting

FINANCIAL REPORTING

A company has to report its financial performance to its shareholders, which is done by financial reporting. Financial reporting standards that companies are required to comply with, depending on their types and policies, include the Singapore Financial Reporting Standards (SFRS) or International Financial Reporting Standards (IFRS).

A typical financial statements includes the following:

· A statement by the business head declaring the veracity of the financial information presented;

· An independent auditor’s report giving its expert opinion of the financial statements presented by the business. The auditing firm must explain its audit process and the basis on which a particular conclusion was reached regarding the company’s financial statements;

· A detailed statement of profit and loss for the financial year;

· Statement of financial position;

· Statement of cash flows; and

· A supporting document referred to as the “Notes to the Financial Statements” explaining business’ nature, accounting policies, financial instruments including foreign currencies, revenue channels, subsidiary information, related parties’ transactions, inventories and infrastructure, intangible assets, financial and non-financial assets, financial liabilities, government grants, employee benefits, cash flow details and any other information which would affect users in their strategic decision making.

(Source: ISCA, Institute of Singapore Chartered Accountants)

The objective of financial reporting is to present true and reliable financial information. Misrepresentation can negatively affect the credibility and profitability of market investments. Manipulated information such as fake news can hurt a business’ image and its stock price, sometimes irreparably. Business decisions such as acquisitions and mergers are based on a business’ financial statements. Inaccurate reporting can affect such crucial business decisions, which in turn impacts market investments of the companies involved, and the general financial flow of the market.  

With business models becoming more complex, the standards governing financial reporting are constantly reviewed by the relevant councils. The risk of manipulation of financial information and the increasing concerns regarding corporate social responsibility of businesses have increased the onus on these entities. Businesses have been made more accountable now for the financial information they present.

The Companies Act requires directors of a company to present financial information that complies with the accounting standards set by the ASC and in such a way that it reflects the true financial health of the company.

The ACRA (Accounting and Corporate Regulatory Authority) has a Financial Reporting Surveillance Programme to monitor poor financial reporting which involves unreliable financial information and non-compliance with the required standards.

Given the onus on directors in the presentation of a solid and transparent financial reporting, the services of a professional accounting firm become invaluable. Accounting expertise and an in-depth knowledge of compliance laws of accounting firms can help companies present financial statements that are unbiased and objective.

Cloud Based Accounting System

CLOUD-BASED ACCOUNTING SYSTEM

Cloud-based accounting systems work through accounting software hosted on remote servers. Compared to traditional software deployment on a business’ local server, a cloud-based system is deployed online – on the internet. As a result, the software and its features are available 24/7 from any location, which saves time, cost and resources for businesses.

Financial information is available on demand, which facilitates timely business decisions based on reliable data. Cloud accounting system is very secure, given the strict security policies accompanying the solutions. Once a subscription plan is signed, you will have an efficient system that integrates seamlessly with your business’ accounting process. You will not experience the hassle of manually updating the software. The version upgrades itself automatically with every new release from the vendor. 

Mighty Glory Corporate Solutions partners with Xero, a leading accounting software in the cloud segment. Xero has a footprint in over 180 countries and has a growing customer base, which is currently more than 1.5 million. Xero offers features to track financial aspects of every segment of your business, including sales invoices, inventories, expenses, bank cash flow, purchase bills, expenses claims, projects, fixed assets and GST. We are also a Xero Certified Advisor who offer complete Xero integration and migration support, from setting up the solution to helping you migrate to Xero from your existing solution and preparing financial statements.

As a comprehensive accounting solution, Xero provides access to 700+ apps that can transform the way you do your business. Some key benefits of using these apps on a Xero platform include:

·       Faster and transparent inventory solution that enables you to easily monitor inventory, manage stock and replenish as required.

·       Extract and consolidate information required to process staff claims at your ease.

·       Valuable project tracking app gives you insights into key project factors, including time and money spent on the project. This helps to identify profitable jobs.

·       Make your payment reception faster through integrations with popular services such as PayPal and Stripe.

·       Ability to access sales-related information, either from POS (Point Of Sales) app or Xero.

·       Know easily how your business is performing at any given time with all key parameters projected, in a customized reporting format.

·       Make insightful decisions and allow maintaining business connections easier with a smart contact list through a CRM (Customer Relationship Management) app.

XBRL Reports

XBRL REPORTS

XBRL (eXtensible Business Reporting Language) Reporting is the process of digital business reporting using XBRL language framework. XBRL is an international standard adopted by many countries including Singapore to communicate on business and financial information. Use of XBRL ensures fast, accurate and digital transmission of financial and business information between entities. XBRL is part of XML languages.

XBRL standard is developed by a not-for-profit global consortium XBRL International Inc., or XII. The Consortium consists of executives from different backgrounds including small and large corporations, academics, accounting firms, governments, software companies, and experts in business reporting.

XBRL provides “information about information” (Source: ACRA). It assigns identifying tags to financial information, say “net profit”, so that the receiving end gets to identify what the tag is about. The identifying tags serve more than the purpose of being labels. They offer in-depth information about the entity they are representing such as whether it is a group item of relevance to an organization, or if the entity is a monetary item or a number representing a fraction or percentage.

XBRL is compatible with computer software, which makes it possible to use any electronic function, including searching, exchanging, selection and analysis, on the data being transmitted. The basic function served by XBRL is to enable communication between computers without human involvement.

According to ACRA’s regulations, all companies incorporated in Singapore have to file financial statements in XBRL format except for those that are exempted by ACRA from such submission. Non-exempt companies have to file in XBRL format, in addition to their standard filing.

Companies that are exempt from filing in XBRL format include merchant banks, commercial banks, and financial companies governed by MAS (Monetary Authority of Singapore). Companies that have legal approval to file financial statements in adherence to standards other than IFRS, SFRS and SFRS for Small Entities, are also exempted from such filing.

Mighty Glory Corporation Solutions can help your business to prepare and file the XBRL reports with ACRA in the correct format. Depending on the type of your company, we will prepare only key financial details or complete financial information in XBRL format.

Hiring a professional accounting firm for creating and maintaining your business’ accounting system helps your business cut down substantial costs on resources including infrastructure such as computers and accounting software, data-entry operators, and corresponding staff training on a regular basis. With an accounting firm, you will be acquiring expertise for a much lower cost than that is spent on maintaining a dedicated in-house accounting department. In addition, a professional accounting service provider can provide timely advice on the financial trends that can help you make sound business decisions.Mighty Glory Corporate Solutions specializes in a wide range of accounting services including business accounting, financial reporting and individual and corporate taxation. We are up-to-date with leading accounting technologies including Xero and majority of its connected apps, MYOB, QuickBooks Online or Desktop, ABSS Financio, Million Accounting, AutoEntry, Hubdoc, HReasily, JustLogin, Talenox and more. We offer customized packages tailored to specific business needs. For more information on XBRL reports, you may check us on our accounting and tax services.

Should I Hire Overseas Returnees?

Should I Hire Overseas Returnees?

According to Hays, about 85% of employers in Singapore say that they are willing to hire overseas returnees in the coming years. Also, 90% of employers recommend to their peers that they should employ overseas returnees. Why such a high number, and what can you expect when you hire one for your company?

WHAT IS AN OVERSEAS RETURNEE?

If a Singaporean who lived and studied abroad, then decides to return to Singapore and stay for good, that person can be considered as an overseas returnee. Some overseas returnees are children whose parents in Singapore sent them overseas to study abroad. As international students, they are exposed to different levels of education and cultural awareness compared to their Singaporean counterparts. Someone is also considered as an overseas returnee if he or she has worked outside of Singapore for several years. The person may have been assigned by their company to work in an international division. However, some were lucky and bold enough to look for a job overseas and successfully gain employment.

According to Hays, about 86% of Singaporeans show interest in extending their job search overseas. Due to the economic decline of superpowers such as the US, UK, and Australia, Singaporeans realize that better opportunities now await them at home. As a result, there are more overseas returnees compared to the past years. This influx is seen as an opportunity by companies to improve their capabilities and business functions.

BENEFITS OF HIRING OVERSEAS RETURNEES

Many employers find great success in hiring overseas returnees, and many of them have got a good experience in working with their returnee. There are many reasons behind the benefits of getting a skilled worker who has worked or studied aboard and will be a company’s advantage. Both returnees and employers have the same views on the benefits that local experience of the former can bring to the table.

REALISTIC SALARY EXPECTATIONS

Unlike overseas returnees in China, Singaporean returnees have realistic salary expectations. Although they do have excellent skillsets, Singaporean overseas returnees are least expectant, followed closely by mainland China.

Although about 45% of returnees are open to having the same salary as they have while they are employed overseas, only about 34% are expecting an equivalent pay. This is much higher compared to those who are returnees from Hong Kong, with about 61% are looking for a higher salary. As for Singaporean returnees, only 32% are looking for higher pay.

The remuneration package is competitive. There are employers who are willing to pay returnees with premium salaries that will match the returnee skillset. Based on the report, about 44% of employers are willing to pay overseas returnees higher salary packages, as compared to their local peers. 28%, on the other hand, are more than willing to give “up to 10% more.”

OVERSEAS COMMERCIAL EXPERIENCE

What returnees have over their local counterparts is their overseas commercial experience. About 62% of employers hire returnees because of the knowledge which they have acquired that one cannot expect to find in Singapore.

Commercial experience increases a person’s ability to view situations based on a business perspective. Increased commercial awareness arms a candidate with the tools needed to understand what drives a business to success. Such experience becomes valuable as the career progresses.

HIGH SKILL-SET

Most overseas returnees, as close as 63% hold bachelor degrees, while a good 24% hold master degrees. This high skill-set makes overseas returnees highly attractive for those who are looking to hire someone who can bring more value to the table.

CROSS-CULTURAL AWARENESS

Because of the difference in cultural exposure, 64% of the companies surveyed voted to hire overseas returnees because of their “different perspectives on business.” Their knowledge can potentially improve existing business processes, providing better overall business value. With the advent of globalization, many first have high regard over the solid mix of international experience and local cultural understanding that overseas returnees have.

According to Lundbeck, who hired overseas returnees, having experience working abroad, these employees usually prove to be strong in their cultural awareness, adaptability, and willingness to learn and are generally go-getters.

LANGUAGE AND COMMUNICATION SKILLS

Overseas returnees have better language and communication skills. Working for a foreign-owned enterprise allows returnees to exercise their English language fluency daily. It is easier for companies to have communication with foreign business partners and such credit goes to returnees’ grasp. Their exposure in different cultures also gives them the confidence to communicate better without the cultural barrier. They will help you penetrate the global market.

ISSUES WITH OVERSEAS RETURNEE WORK POOL

Still, although an overseas returnee is highly sought-after by most employers, there are some hurdles that you will find when you hire one.

LACK OF LOCAL WORK EXPERIENCE

Their understanding of foreign business practices comes with a price. Because of your overseas returnee’s years of isolation from Singapore, he or she will have a hard time understanding the local work practices. About 36% of employers are facing such an issue of their talent difficulty in adapting to local cultural nuances and corporate processes.

Overseas returnees should research their home countries’ corporate culture and identify any distinct or essential customs that are observed in a day-to-day business setting. This would enable their transition to their jobs back home an easier one. They should also understand the company and industry for which they will be working and relate how their past working experience or education could value-add to the business.

A MISMATCH IN EXPECTATIONS OF OFFER PACKAGES

Although previously stated that there are overseas returnees who have the least expectations when it comes to salary packages, there are about 32% of them who will expect an increased salary compared to what they are earning abroad. Overseas returnees believe that there are a lot of things they can offer to the companies in their home country because of their global experiences. While there are some companies that are willing to offer higher salary packages, the packages still depend on the skill-set of the returnee and the employer’s budget.

WHY DO THE RETURNEES RETURN

There are many reasons why there is an increasing rate of overseas returnees in Singapore

  • Being closer to their families – this is most especially true for children, who are sent abroad to study. A good majority of returnees, about 45%, feel the need to return home to take care of their family. Most returnees think that taking care of their parents is one of the duties that they must fulfill as a part of the Confucian’s filial piety teachings. Children are expected to take care of their aging parents as well. Failure to go back to one’s home country for them means that they have neglected their duty to their own family.
  • Opportunity to develop their careers – This is particularly especially true in popular destinations for Singaporean migration, such as Australia, UK, and the US where work visas and immigration rules are tightened, and the economy of superpower decline. Due to the increasing strictness and shortage of career opportunities abroad, many are now realizing that better jobs are waiting for them at home. When the recession hit the economy, most of the returnees were forced to either receive lower salaries or take jobs that are not paying that well. Change in the government also helped them realize that there are better opportunities back home.
  • Culture or lifestyle ties in Singapore–this is true for most who grow up in Singapore and find a longing to be part of their home once again. Most of the returnees would like to continue enjoying their lifestyle in their home country. Most returnees would like to experience once again the familiar vibes that their own country has to offer. Although it is easier to live in other parts of the world now because you can have access to whatever you would need in another country, nothing would still beat the sense of comfort their home country could offer. Singapore talents living abroad are drawn to what it can offer, such as low crime rates, relative cleanliness, proximity to loved ones and a keen sense of familiarity in lifestyle and culture.

GETTING THE RIGHT MATCH

Most companies often rely on recruiters to find the ideal and suitable overseas returnee to hire. The mismatch in platforms where employers and overseas returnees go to present a problem in getting the right candidate for the right job. About 37% of the candidates use a recruiter to seek employment, with about approximately 32% using search engines like Google or Yahoo to look for opportunities.

ARE YOU AN OVERSEAS RETURNEE?

Mighty Glory Corporate Solutions is very glad to assist on your financial planning and individual income tax reporting. Our goal is to assist you with professional, efficient, and affordable services that will aid you on your return.

ARE YOU TRYING TO HIRE AN OVERSEAS RETURNEE?

We offer a wide variety of accounting services such as setting up and implementation, accounting and GST Return. Contact us now to know more about how Mighty Glory can help with your business.

How To Choose A Suitable Accounting Software For Your Business?

How To Choose A Suitable Accounting Software For Your Business?

It is necessary to have accounting software to monitor the cash movement and financial health of your business. The application of choice will ultimately help you manage projects and monitor bills. However, choosing the right accounting software can be challenging. Different software offers different features and specifications at different prices. Here are the three basic things to keep in mind when choosing an effective accounting software.

  • Usability: The number of users involved will affect your choice of an accounting software. Usability also includes the preferred access to the system – from anywhere or from desktop only. The option of having an additional mobile app to facilitate use or access to real-time information should also be considered.
  • Cost: It is a trade between advanced features and cost-efficiency. You have the option to get either basic inexpensive or advanced and dynamic accounting software. The more sophisticated software will offer more features, great support and better usability, which will also cost more.
  • Features: The more advanced software offers more features, while the basic software generally provides the minimum applications and features. Your choice will depend on how and what applications you need for your company. What reports do you need the software to generate? Do you want to have both account payable and receivable tools?

 Support and Accessibility

To choose the best software for your company, its intended use should be carefully considered. How, when, what and where? Here are some important factors to consider:

  • Multiple business support: A software that can support multiple small businesses under one account is convenient and cost-effective too. Otherwise, the handling of several different accounts can be complicated and costly.
  • Multiple user access: How many users need or have access to the business accounts? Yourself, your partner, bookkeeper, procurement managers, sales managers and more. An accounting software that allows multiple users to access with different permission rights is ideal. Some systems provide this function at no additional cost.
  • Cloud software and mobile access: A cloud accounting software will let you access the accounts anytime from anywhere, provided that you have a computer and active internet connection. This allows you to run the business from home or on vacations.

 Are you familiar with Million Accounting System? Check out this article, The 5 Advantages of Using Million Accounting System for SME’s in Singapore.

After a choice is taken, necessary set-up must be properly completed so that the product can function, as mentioned by the vendor.  Feel free to contact Mighty Glory for a meeting in person (free of charge) so that we can understand your expectation(s) or requirement(s) to assist further.

Eight Ways Technological Innovations Changed Small And Medium Business Accounting

Eight Ways Technological Innovations Changed Small And Medium Business Accounting

The forward-thinking accounting firms in Singapore advocate cloud computing and the use of an accounting software. The benefits of using a software ideal for the needs of the company far exceed the costs and temporary disruption it might cause. The migration of files, adaption of the new system, recruitment of the right people and installation of the applications could be a hassle. But you also have the option not to go through all these! They can be delegated to the experts in the accounting firms in Singapore.

Here are eight of the top changes and benefits brought about by technological advancements to small and medium business organizations:

1. The Paperless Office

Modern business technologies shrunk the office spaces. We no longer need the bulky filing drawers, the stacks of office documents, and most of the quintessential office equipment like fax machines and photocopiers. The use of paper has gone down to the minimum. The modern and more environmental-friendly office setup only needs computers, internet connection, desks and chairs. Thus, offices are more space-efficient, clutter-free, and productive.

2. Cloud Processing

Instead of the extensive office filing and storage system that includes filing cabinets, drawers, paper files, and complex access and safekeeping management, we now have cloud computing. This is the digitized equivalent of the paper-based filing system. All office files, documents, and reports are digitized and uploaded to a central server where access is efficiently managed and security is optimized through an off-site storage facility.

3. Real-Time Postings

Cloud computing and the use of accounting software can provide real-time updates and reports. As most accounting software can now be integrated with bank accounts, payroll and productivity software, billing, and collection, users can generate financial reports that are updated and accurate. Updated reports and financial statements can be generated whenever required, any day of the year. This leads to better decision-making, forecasting and auditing processes.

Related: Why Companies Outsource Their Payroll?

4. Work Anywhere

The most significant change in business technology has impacted how we work today is the freedom to choose how, when, and where we work. Connectivity and accessibility enable us to work anywhere and anytime we prefer. Through cloud computing, work files can be accessed and shared from anywhere around the world. Thus, you can still check on your company numbers while on vacation, during your commute, or from home.

5. Simplified Work

Most accounting software, used by outsourcing firms in Singapore, already features integration with other business accounts like bank accounts, payroll features, billing and collection functions, and even inventory. Any updates are automatically posted, and the system is updated real-time. Thus, reporting is streamlined, accuracy and correctness are guaranteed, and staffing need is reduced.

6. Enhanced Securities

One key element of cloud computing is its off-site, third-party storage facility. This removes the physical files from your office and care. Everything is stored in the clouds, where access can be restricted, and file management is easily regulated by passwords and permissions. With the sophisticated security protocols in place, file loss due to thief, fire, and unauthorized access are prevented.

7. Cost Efficiency

Accounting services in Singapore are at the most affordable today. Business innovations and technological advancements allow small and medium enterprises to enjoy the best and expert services from accredited corporate service providers in Singapore. Whereas before where you need to buy the entire software, build your technical infrastructure and hire professionals, the company only needs a stable internet connection, subscribes to an accounting app service, and assign an external accounting firm to do the work.

8. Effective Delegation

The latest state-of-the-art business apps and platforms enable businesses to efficiently delegate tasks, reduce the worry. This allows the busy startup entrepreneur to focus on growing his or her company, or the team to concentrate on innovations and creative endeavors. Why go through accounting books when you can hire the best corporate service provider in Singapore? Learn more about cloud computing – its benefits, challenges, risks and your options. Choosing the right software for your business is key to a successful migration to the clouds.

Today, let’s fix a date with us to have an initial meeting. We are very glad to help you in identifying a suitable cloud computing system that will best fit your business needs.

Sole Proprietorship And Private Limited Company

Sole Proprietorship And Private Limited Company

Sole Proprietorship is the simplest business structure that can be formed easily with minimal cost and legal formalities.  A single person operates this form of business and the owner is responsible for all the business obligations and losses.  Owner has the entire hold on the business and can run it according to the desired plans without being answerable to anyone.  Owner, being the sole decision maker, is responsible for every decision that may affect the business in both positive and negative manner.  There is no boundary between personal assets and business liabilities.  If owner fails to pay the business debts, the creditor may recover it by consuming the personal assets of the owner, hence leading to unlimited liability.  Owner may face difficulties in raising the capital in such form of business.  There is no difference between the owner and the business because Sole Proprietorship is not a separate legal entity.  Therefore, the business gains are added together with the owner’s income from other sources and taxed at progressive individual income tax rates, with the current highest personal income tax rate at 22%.

Private Limited Company is another business structure that a single entrepreneur can also opt for. The form of business that can be established with minimum 1 shareholder. Unlike Sole Proprietorship, it follows the concept of limited liability that restricts the contribution of shareholders, in paying the business debts, to the investment of the shareholder. Contrary to the Sole Proprietorship, this form of business offers ease of raising capital by adding a new shareholder or issuing shares to the existing shareholders that allows the inflow of capital for business expansion.  Corporate tax is levied at a fixed rate (currently, 17%) on the profits earned, resulting in reduced personal income tax rates.  Dividends distributed, to the shareholders, from the profits (net of taxes) are not taxable in their individual income tax returns.  Certain government incentives or claims, available for Private Limited Company, are not applicable in Sole Proprietorship.  Private Limited Company has statutory responsibilities, including but not limited to maintain registers of company officers, conduct annual meetings with minutes and financial statements prepared for submission to statutory bodies.  Unlike Sole Proprietorship, there is no single authority to make final decisions for the business.  Every shareholder has the right to vote in the decision making during the general meetings.

Might Glory Corporate Solutions is one of the leading Corporate Service Provider companies in Singapore. We specialise in company incorporation, corporate secretarial, nominee directorship, accounting and bookkeeping, corporate and individual tax services, financial reporting, and administrative support services. Contact us today for any clarification between Sole Proprietroship and Private Limited Company matters or any related to your business needs.

PayNow Corporate – Its Pros And Cons

PayNow Corporate – Its Pros And Cons

PayNow Corporate, a new paradigm in the world of cashless transaction. The fund transfer service uses an innovative technology that links a bank account with an entity’s Unique Entity Number (UEN). This enables corporate businesses and Singapore Government agencies to make instant fund transfers without prompting the sender for the recipient’s bank name or account number.

The advantages in using PayNow Corporate include:

1. This feature reduces the transaction time, cost, and hassle in processing the transaction.
2. The method does not only allow greater convenience, but also uses the established security standards to ensure secure fund transfers.
3. Unlike in mobile wallets, the sender does not have to recharge the wallet for transferring the money, making it more user-friendly.
4. Users also have the option to process transactions using the mobile app or through internet banking.
5. Transfers are processed instantly.

Challenges to using PayNow Corporate include:

1. The availability of an active internet connection and the use of appropriate devices are required for users to enjoy the benefits of PayNow Corporate.
2. The app could appear too complex and confusing for tech-challenged people.
3. While bank account details are shrouded in the transaction processing, pre-registration of bank accounts is a pre-requisite to using the service. This requirement could scare off traditionalists from taking the initial step in joining the cashless society.