Monthly Archives: July 2018

Business Organisations in Singapore

In Singapore, companies are principally governed by the Companies Act (Cap 50, 2006 Rev Ed) (hereinafter “the Act”). It should be noted though that specific types of companies may, in addition to the Companies Act, be regulated by other statutes.

Business organisations can either be incorporated or unincorporated. Incorporation involved creating a separate legal entity. The separate legal entity created can incur its liabilities and have its own rights that are distinct from those of the owners or creators of the entity. The most common forms of incorporated organisations are the company and the limited liability partnership, though there are others such as statutory boards and management corporations. The most common forms of unincorporated organisations are the sole partnership, the partnership and the limited partnership, though there are others such as business trusts.

Read: Comparison of Business Entities in Singapore

Setting up a wrong type of organisation to run a business may affect the business and may affect the owner of the business, although it may be possible to dissolve one form of structure and set up another. Generally speaking, the cost of setting up the wrong type of organisation may be higher than running the business.

Know the Types of Business Organisations First

Importantly before you start your business in Singapore, get to know about the types of business entity you could choose from.

There are 4 main types of business structures to choose from. They are:

1. Sole-Proprietorship (one owner) or Partnership (two or more owners)
2. Limited Partnership (LP)
3. Limited Liability Partnership (LLP)
4. Company

1.Sole-Proprietorship (one owner) or Partnership (two or more owners)

Definition: A business owned by 1 or more person

Registration requirements: Singapore Citizen/Singapore Permanent Resident/EntrePass

Legal status:

• Not a separate legal entity
• Owner/Partners has unlimited liability
• Cannot own property in the firm’s name
• The owner is personally liable for debts and losses of the business, Partners personally liable for partnership’s debts and losses incurred by other partners

Tax: Profits taxed at owner’/partners’ personal income tax rates

2. Limited Partnership (LP)

Definition: A partnership consisting of two or more persons, with at least one general partner and one limited partner

Registration requirements: If all general partners are ordinarily resident outside Singapore, they must appoint a local manager who is ordinarily resident in Singapore.

Legal status:

• Not a separate legal entity
• The general partner has unlimited liability
• The limited partner has limited liability
• Cannot own property in the firm’s name
• General partner personally liable for debts and losses of the LP

Tax: Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation)

3. Limited Liability Partnership (LLP)

Definition: A partnership where the individual partner’s liability is generally limited

Registration requirements: At least one manager ordinarily resident in Singapore

Legal status:

• A separate legal entity from its partners
• Partners have limited liability
• Can own property in LLP’s name
• Partners personally liable for debts and losses resulting from their wrongful actions
• Partners not personally liable for debts and losses of LLP incurred by other partners

Tax: Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation)

4.Company

Definition: A business form which is a legal entity separate and distinct from its shareholders and directors.

Registration requirements: At least one shareholder (could be a foreigner). At least one director is ordinarily resident in Singapore.

Legal status:

• A separate legal entity from its members and directors
• Members have limited liability
• Can own property in the company’s name
• Members not personally liable for debts and losses of the company

Tax: Profits taxed at corporate tax rates

Foreign Companies Considering Expanding Your Business to Singapore

If you are a foreign company planning to expand your business in Singapore. Here are options for Singapore company incorporation you may wish to know before proceeding further.

Before you decide on your business type, please note:

• A Singapore Representative Office would not be applicable if you do any income-generating activities.
• A Singapore Branch Office must have the same business activities and name as the parent company.

Read: Choosing a Business Structure

While some businesses choose to act on their own, others turn to Acrabiz or service providers for assistance. Designating us as your appointed agent has many advantages. Our clients have benefited from our physical availability to act for them all the time. Our works are organised and as the gatekeeper between your business and the authority, you can be assured the authorities will receive high-priority, quality paperwork every time. Nothing is accidentally lost or forgotten.

Need support to incorporate the right type of business? Let Acrabiz help you as your business advisor and corporate secretary!

After moving to the new country, one of the first things you’d want to do is to open a personal account in the local bank. In this article, we would go through the requirements for Employment Pass holders to open a regular account in one of three leading banks of Singapore.

Local banks

DBS (Development Bank of Singapore) was set up by the Singapore Government in 1968. Today it’s the largest bank in Southeast Asia with total assets of S$579 billion as of 2019. It has branches in China, Hong Kong SAR, Taiwan, South Korea, Japan, Myanmar, Indonesia, Malaysia, India, Thailand, Vietnam, Philippines, United Kingdom and the United States. Walking around Singapore, you would also see a lot of POSB ATMs, which is a bank under DBS.

OCBC (Oversea-Chinese Banking Corporation) is the second biggest bank in Southeast Asia with total assets of S$491 billion as of 2019. The bank is represented in China, Hong Kong SAR, Macau SAR, Malaysia and Indonesia.

The third biggest bank in the region is also a Singaporean bank. UOB (United Overseas Bank) has total assets of S$404 billion as of 2019. Aside from Singapore, it operates in China, Hong Kong SAR, Taiwan, South Korea, Japan, Myanmar, Indonesia, Malaysia, India, Thailand, Vietnam, Philippines, Brunei, United Kingdom, Canada and the United States. 

How to open an account?

DBS allows EP holders to apply for a bank account opening online . You would only need to log in the systems using your SingPass, fill in the form and attach the required documents. DBS encourages new clients to apply online. That’s why the process is free of charge. If you still decide to go to one of the bank’s branches and open an account there — you would need to top up the initial deposit of S$3000.

OCBC and UOB allow online account opening only for citizens or Permanent Residents of Singapore . EP holders need to proceed to one of the branches and apply there. The initial deposit you need to provide upfront for both banks is S$1000.

Required documents

To open you an account, all of the banks would request the same records from you. You are required to provide:

1. Passport with at least six months of validity (biodata page);
2. Employment pass or In Principal Approval (IPA) issued by the Ministry of Manpower
3. Proof of residential address – the latest copy of any of the items below:

• In-Principle Approval (IPA) issued by the Ministry of Manpower
• Work permit of foreign domestic worker (domestic helper) issued by the Ministry of Manpower
• Letter of offer
• Letter of employment
• Latest payslip
• Local utility bill
• Local telecommunication bill
• Local bank statement/credit card statement
• Letter issued by the government of other public bodies regulated for AML practices in a FATF member country
• Letter from regulated insurance companies in a FATF member country
• Letter from school (restricted to official letters from educational institutions or schools under the purview of Council for Private Education or Ministry of Education)

Deciding which bank to choose is up to your preferences. Each of them provides customers with their privilege programmes and mobile payment systems. No matter which bank you pick for yourself, keep in mind that Singapore’s banking system is one of the strongest in the world. Therefore your assets would be safe. 

Priority banking in Singapore

Priority banking is designed for high net worth individuals who deal with significant transactions. The advantages of being a priority banking customer include priority queues, a personal relationship manager to handle all customers banking needs, better interest and foreign exchange rates and even more powerful loan packages. Privileges may include airport lounges, travel and golf club discounts. 

Of course, to become a priority banking customer, you need to place a certain amount of assets with the bank and meet some requirements. The assets can be either cash in savings accounts or fixed deposit accounts, or investments such as bonds, shares, unit trusts, ETFs and REITs. In this article, we will go through some priority banking programmes in Singapore. 

DBS Treasures 

DBS (Development Bank of Singapore) was set up by the Singapore Government in 1968. Today it’s the largest bank in Southeast Asia with total assets of S$579 billion as of 2019.

If customers place assets of S$350,000 with DBS Treasures, they can enjoy the real VIP treatment in the DBS Treasures Centres or ATM lobbies, exclusively for priority customers.

DBS Treasures customers can also enjoy the DBS Treasures Exclusive Safekeeping Centre where they can lock up their valuables. The centre is open from 8:30 am to 10 pm. This service comes with private parking and rest area.

Saving customers money, DBS has waived fees on telegraphic transfers and withdrawals abroad. 

OCBC Premier 

OCBC (Oversea-Chinese Banking Corporation) is the second biggest bank in Southeast Asia with total assets of S$491 billion as of 2019.

To be eligible for OCBC Premier banking, customers have to deposit or invest S$200,000. Eligible customers can receive a welcome reward of up to S$1,000 cash credit when they start a Premier banking relationship with S$350,000 fresh funds. 

Premier customers can access banking centres in mainland China, Macao SAR, Hong Kong SAR, Indonesia and Malaysia. 

Some other banking privileges include sending money overseas without cable and commission charges for foreign currencies and getting access to preferential fees for selected transactions.

The OCBC Premier VOYAGE credit card suits the frequent flyers. Card members receive 2.3 miles with every S$1 spent in foreign currency, 1.6 miles with every S$1 spent on dining in Singapore and 1.2 miles for every S$1 on local shopping. All miles accrued on this card have no expiration date. In addition, card members also enjoy concierge services, VIP premium airport lounge access and complimentary airport transfers with monthly minimum spends. Other benefits include golf privileges and up to 19% off at Caltex petrol stations with no minimum spending required.

UOB Privilege Banking 

UOB (United Overseas Bank) started operating in 1935. Today it has total assets of S$404 billion as of 2019.

To become a UOB Privilege Banking customer, customers need to place assets of at least S$350,000. UOB Privilege Banking provides wealth management services to high net worth clients around the world. Currently, there are seven dedicated Privilege banking centres and personal services in all 44 UOB branches in Singapore. 

Privilege banking customers are entitled to the UOB Privilege Banking Card, which offers the following odds:

• 60,000 air miles if customers pay for the annual membership fee;
• 2 miles for every $1 spent on overseas dining and retail;
• 1.2 miles for every $1 spent on everything else;
• 24-hour UOB Privilege Concierge service;
• Complimentary weekday green fees at Sentosa Golf Club.

Citibank Singapore

Citibank Singapore Limited is a division of Citibank N.A. of the United States and incorporated in Singapore on 28 June 2004. Its parent was awarded Qualifying Full Bank (QFB) status on 20 October 1999, and this status was transferred to the Singapore division on the day of its incorporation.

Now it has nearly 700 Citibank branches in the US and more than 1,800 overseas. It holds a total asset of US$1.917 trillion as of 2018.

Citibank has two priority programmes – City Priority and Citi Gold. 

To qualify for Citi Priority, customers are required to deposit S$70,000. In return, customers will get preferential rates and personalized services, lifestyle privileges and a personal banker.

The Citi Priority debit Mastercard will let customers withdraw cash without charges at Citibank ATMs worldwide.

Opening the Citigold account requires customers to deposit S$250,000 in the bank, but the perks are far more significant. The welcome gift is a jaw dropping S$7,484 or two business class return tickets to Australia, subject to terms and conditions. Customers will deposit S$500,000 in fresh funds, purchase S$250,000 of unit trusts or life insurance in the first six months and maintain a balance of S$100,000 till month 12.

As a Citigold client, customers are entitled to Citigold Debit Mastercard, which gives customers access to over 850 Mastercard airport lounges worldwide, 15% savings on medical and wellness packages. You can also enjoy exclusive member benefits, including free nights, room upgrades and special rates at over 500 independent properties in more than 80 countries around the world.

Maybank 

Maybank (Malayan Banking Berhad) is Malaysia’s largest bank with total assets of US$188 billion as of 2017. 

With S$300,000 in deposit, customers can open a Maybank Premium Wealth account and enjoy priority services at all its branches in Singapore and Malaysia, as well as Bank Internasional branches in Indonesia.

You will also gain access to Premier centres in Maybank Tower, Holland Village, Marine Parade and MSpace at Orchard. 

As a privileged client, customers are entitled to a Maybank Premier platinum debit card, which allows cash withdrawal in local currency from any Maybank ATM in Malaysia, Brunei, Philippines, Indonesia (BII ATMs) and Cambodia, without any service charge.

HSBC

HSBC Holdings is a British multinational investment bank and financial services holding company. It is the 7th largest bank in the world and the largest in Europe with total assets of US$2.558 trillion as of 2018.

The HSBC Premier programme requires customers to place a minimum of S$200,000 (or the equivalent in foreign currency). HSBC has offered S$400 as a welcome gift to qualified customers in this Premier programme. 

HSBC Premier MasterCard comes with the following perks:

• 5% cashback on everyday spend (both overseas and local);
• Discounts & privileges on dining, travel, hotel, shopping;
• Complimentary travel insurance coverage of up to S$1 million;
• Complimentary consultation and exclusive Premier rates on school enrolment services through education partners;
• Worldwide banking assistance extended to your children.

Standard Chartered 

Standard Chartered is a British banking company represented in over 70 countries. It started operating in Singapore in 1859. As of 2019, it holds US$720 billion in total assets. 

To become the SC Priority Banking client, customers need to bring in minimum fresh funds of S$200,000. You will be entitled to a welcoming bonus of up to S$6,000. 

Being a priority customer allows you to get a Visa Infinite credit card, which provides the following benefits:

• Earn 2.5 points for every S$1 spent on your credit card;
• Complimentary travel insurance worth S$50,000 each for you and your spouse when customers charge to your card at least once when overseas;
• Priority Pass lounge access;
• 24 hours Visa Infinite concierge service.

Therefore, picking which privilege programme to sign for is only up to your lifestyle and assets. Based on the funds customers have, here is a consolidated table of priority banking programmes available in Singapore: