Customer will be asked to complete a customer due diligence form before corporate service provider licensed by ACRA can provide any service to the customers (agents and beneficial owners).

Below are the information that must be provided:

INFORMATION ON CUSTOMER

• Full name as in NRIC (PASSPORT)
• Residential Address
• Postal code
• Date of birth
• Gender
• Nationality (Singapore citizen, Singapore PR, FIN with expiry date)
• Contact No 
• Email
• Declaration that the person has no criminal records in the eyes of the law.

Please provide a photo copy of the NRIC/PASSPORT for identification and verification and proof of authority to act as agent, normally a resolution by the company. For those PASSPORT without address, please provide driving license / bank statement/utility bill etc for verification.

INFORMATION ON BUSINESS ENTITY

(Please provide the latest business profile if available)

• Name of entity
• Unique entity number (UEN)
• Address of the registered address
• Address of principal place of business (if different)
• Nature of business
• Income mainly from local/specific countries
• Date of registration
• Contact number
• Email address
• Intended nature and purpose of business relationship :  secretarial services

Details of each and every director and shareholder

(please copy and paste if necessary)
Full name as in NRIC (PASSPORT)

Residential Address

Full name as in NRIC (PASSPORT)

Postal code

Date of birth

Gender

Nationality (Singapore citizen, Singapore PR, FIN with expiry date)

Contact No 

Email

Declaration that the person has no criminal records in the eyes of the law

INFORMATION ON CUSTOMER’S BENEFICIAL OWNER(S)

(SKIP this section if the shareholder is the ultimate beneficial owner, i.e. the existing shareholder is not a nominee shareholder, holding the shares on behalf of another person,

• Full name as in NRIC (PASSPORT)
• Residential Address
• Postal code
• Date of birth
• Gender
• Nationality (Singapore citizen, Singapore PR, FIN with expiry date)
• Contact No 
• Email
• Declaration that the person has no criminal records in the eyes of the law

INFORMATION  RELATING TO POLITICALLY EXPOSED PERSONS

THEIR IMMEDIATE FAMILY MEMBERS AND CLOSE ASSOCIATES

Is the customer, agent, beneficial owner or any party- connected to , a politically exposed person (PEP)?  The answer will normally NO.

Customer’s Declaration

I declare that the information provided in this form is true and correct.

Name of Customer

NRIC/ PASSPORT number

Date

Signature

Customers may ask why CDD must be done?  The answer is quite obvious, under section 28F(9) ACRA ACT

Every Registered Filling Agent (RFA)  shall comply with all of the following Conditions:

• to perform such CDD measures to detect or prevent Money laundering and terrorist financing;
• to cease to act a FA for a person if the RFA is unable to complete the prescribled CDD measures in respect of that person;
• to keep, in such manner and for such minimum period as may be prescribed, al records obtained through the prescribed CDD measures, including (but not limited to) all copies or records of any identification documents, accounts, and business correspondence as well as the results of any analysis undertaken;
• such other terms and conditions of registration as may be prescribed.

Non compliance can lead to cancellation of the license, suspension of registration, restriction on use of ACRA system and a penalty of less than $25,000.

It is hoped that potential customers can now understand why we insist on obtaining a complete CDD from them.

The post WHY CDD FROM CUSTOMER? appeared first on AnnualReturnsSingapore.com.

For your information, the UFS will consist of the following statements:

1. Income statement (aka profit and loss)
2. Financial position (aka balance sheet)
3. Cash flow statement
4. Movement in equity
5. Notes to accounts
6. Statement by directors

If the client is able to use accounting software, to prepare a profit and loss (aka Income statement) and balance sheet (aka financial position), then UFS (including a cash flow statement that is not produced by the standard accounting package) can be prepared easily based on the information provided.

Most of these reports must be adjusted for depreciation expenses, company tax provision, dividend payment, director fee etc.  The book keeping staff normally are not trained to deal with such adjustments.

Some time, the client may not keep proper accounting record and never prepare profit and loss or balance sheet.  Then the only way is to get these information from the monthly bank statements.

Normally the deposit will be assumed to be sales proceeds or capital injected by the owner. (It is important to distinguish the nature of the income, as it will affect the profit and loss). And the withdrawals are considered expenses.  The client must provide the information on these expenses so that the nature of the payment can be ascertained and charged to proper accounts such as salary expenses, bank charges, cpf expenses, rental expenses, transport expenses etc. 

If the client has filed the invoices for these payments properly and prepared payment vouchers for each of these payments, then classification of the expenses can be derived quite easily.  However, if this is not done, then all these expenses must be considered COS (Cost of sales), the profit and loss prepared on such basis will have the right profit or loss, although the total expenses ARE correct but the nature of expenses will not be correct.  Client must improve on record keeping so that the following year, such inaccuracy can be minimized.

Some clients are able to use excel to keep all these transactions.

An excel sheet will list down the invoices raised for the whole year in running numbers (of course it is better to use accounting software if there are a lot of transactions), total up all the invoices and that will be the sales for the year.  And total up those invoices that are not paid by customers will be the debtor account (aka accounts receivable).

Another excel sheet will list down the expenses paid, again the total will be the expenses incurred for the whole year.  The client can then use the excel sheet to classify them into proper headings such as rental, salary etc.

Total sales minus total expenses will be the profit or loss for the financial year

In short, the client must keep all the original documents such as invoices to customers, and invoices from suppliers for at least five years in case the authorities such as ACRA or IRAS wants to audit the company’s account.

In preparing the financial statement, the client must provide opening balance and closing balance of bank account for verification.  The client is also reminded that certain expenses must be properly accounted for as they are not tax deductible items, amongst others:

Medical fee – there is a limit based on the total salary of the company.

Vehicle expenses – All expenses incurred by private plate cars are not allowed.

Legal fee – for property purchase

Subscription expenses – for private club, and not professional body

Depreciation expenses – to be added back for tax computation, capital allowance will be given by IRAS.

The client must provide NOA (NOTICE OF ASSESSMENT FROM IRAS) so that Loss carried forward if any, and tax paid during the year can be accounted for in the CASH FLOW statement and Form CS.

We would encourage our clients to set up a proper accounting system, and provide us with PROFIT AND LOSS ACCOUNT AND BALANCE SHEET.

If the clients do not keep proper accounts, we can help to prepare those statements based on incomplete records basis for the current year, but the client must improve on the accounting function in the following year.  We will have to charge additional fee as these analysis and adjustments are part of the book keeping work supposedly to be done by clients in the first place.

If you have any doubts, or need any help in setting up proper accounting system, accounting software please contact me at : 94899429 or email me at yamjason@gmail.com,

 I will respond within 24 hours.

The post IMPORTANT INFORMATION ON PREPARING UFS IN SINGAPORE appeared first on AnnualReturnsSingapore.com.

All private limited companies carrying on a trade or business in Singapore need to file either form C or form CS in the following year after year end. Most of the companies qualified for filing Form CS, the companies meet the following conditions:

• Singapore Incorporated company.
• Revenue is $5,000,000 or below.
• Derives only income taxable at 17%.

Not claiming the following items:

• Carry back of current year capital allowance/losses.
• Group relief
• Investment allowance
• Foreign tax credit and tax deducted at source.
• Failing which the company must file Form C.

All companies must report their income even if the company is making a loss. The company can authorize any person to sign the form C or form CS, however the director or principal officer is still responsible for the company’s tax affairs. There are penalties for late filing or not filing as well as penalties for filing a wrong return.

You don’t need to submit financial statements, tax computation, supporting schedules, or original receipts (Only to be submitted to IRAS upon receipt) if you are submitting form CS)

Tax exemption scheme for new startup companies

To support entrepreneurship and local enterprises to grow, a newly incorporated company that meets the qualifying conditions can claim for full tax exemption on the first $100,000 of normal chargeable income for each of its first three consecutive FAs. A further 50% exemption will be given on the next

$200,000 of the normal chargeable income starting from YA 2008. Partial tax exemption will be given if the company does not meet the qualifying conditions.

Qualifying conditions

• be incorporated and tax resident in Singapore.
• have no more than 20 shareholders throughout the Year of Assessment.
• All the shareholders are individuals.

You must now submit your form C or form CS  online.  Form C in  Singapore  e-filing  procedure Download the form C offline application from Prepare the form C package

• complete the tax computation template
• attach the tax computation
• attach the company’s audited or unaudited accounts
• complete form C and other relevant forms

Upload the form C package for submission to IRAS via Mytax portal.

ECI AND FORM CS 2020

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Small Companies routinely use outside firm to handle their payroll, Accounting and HR functions. And this is known as Outsourcing. This is a familiar concept to many entrepreneurs. Amongst others, the following are the advantages of outsourcing your work in Singapore:

Level the playing field.

Most small firms simply can’t afford to match the in-house support services that larger  companies maintain. Outsourcing can help small firms to use the service of professionals without burning their pockets; especially when the businesses are still not making a lot of profits.

Control costs.

Cost-cutting may not be the only reason to outsource, but it’s certainly a major factor. Outsourcing converts fixed costs into variable costs, releases capital for investment elsewhere in your business.

No Learning Curve Problem.

Hiring and training staff for short-term or peripheral projects can be very expensive, and temporary employees don’t always live up to your expectations. Outsourcing let you focus your human resources where you need them most and leave the unfamiliar areas to the professionals.

Focus on your core business.

Every business has limited resources, and every manager has limited time and attention. Outsourcing can help your business to shift its focus from peripheral activities toward work that serves the customer, and it can help managers set their priorities more clearly.

If your company is thinking of outsourcing your work in Singapore, We are able to provide the following at very competitive prices:

Accounting Function

Monthly Payroll, Book keeping, GST submission, Annual Filing, Company income tax, AR/AP management, computerization of your accounting department. Part time Accountant/Finance Manager; short-term Accountant/Finance Manager.

Human Resource Function

Recruitment, Leave management, Annual Appraisal and confidential report, Training of staff members. IR8A preparation and other statutory surveys.

Trade Representative

If you are a foreign company looking for buyers and or sellers in Singapore, we are able to shortlist potential buyers and sellers and schedule meetings with them on your behalf.

All these services that we provide can be on per assignment or on a monthly retainer fee basis. Do email us if you need further clarification.

Thank you. My email is jasonyam@e-rainbowlight.com ; yamjason@gmail.com Hand phone and whatsapp/ WeChat: 065 9489- 9429

2019 © Annual Returns Singapore outsource Your Accounting Work In Singapore

The post OUTSOURCE YOUR ACCOUNTING WORK IN SINGAPORE appeared first on AnnualReturnsSingapore.com.

Every Singapore Private Company limited by shares must appoint a company secretary within 6 months from the date of its incorporation. In other words, the post should not be left vacant for more than six months.

The company secretary who performs the secretarial services in singapore “need not be a professionally qualified person ” under section 177 (1AA),( i.e. CPA, Lawyer, or Chartered Secretary) unless the company is listed in the stock exchange of Singapore.

It is a common practice for small companies to appoint one of the directors as company secretary (if there is only one director in the company, then he cannot be the director cum secretary, he can appoint his sibling to the post) and outsource the following secretarial services in Singapore. Below are a list of works to be handled by company secretary.

• Change of directors, shareholders, etc.
• Maintaining the register of directors and shareholders
• Issuing share certificates and recording transfers of shares if necessary
• Maintaining the register of members and debenture holders and register of nominee director and controller
• Preparation and submission of the Annual Returns (ACRA)
• Filing of documents and changes with corporate regulatory body (ACRA)

Many companies have failed to meet the deadline set by ACRA for their annual returns and have to pay a penalty for late submission ($300 to $600). And sometimes the directors are summoned to Court. This is because the company secretary is not aware of all the statutory requirements, and miss the filing deadline ACRA and tax return to IRAS

If you need help in carrying out the secretarial services in Singapore, such as

• change of company name,
• change of company address,
• appointment of director/secretary,
• allotment of new shares,
• AGM documentation,
• ACRA annual returns,
• striking off company
• and other consultancy on ACRA requirements

Please give me a call (or whatsapp or WeChat) me at +65 9489-9429, I will be happy to be of service to you. (You can rest be assured that my price is very competitive; and turnaround time is fast!)

Secretarial services in Singapore 2019

The post SECRETARIAL SERVICES IN SINGAPORE appeared first on AnnualReturnsSingapore.com.

Do You Know The Latest Requirements In Keeping Proper Records for IRAS In Singapore?

Your company must keep proper records of its financial transactions by keeping all the invoices, vouchers and other supporting documents for five years.

These records should include:

• Income and Expenditure.
• Source documents such as vouchers, invoices, receipts and bank statements.
• List of assets (Debtors, Stock, Cash & Bank Balance, Other fixed assets), and liabilities (Creditors, unpaid bills)

To comply with these requirements, it is suggested that you maintain a manual system or use an accounting software package.

Manual System (Keeping Proper Records for IRAS)

You should have three files to keep track of payment, receipt and Cash movement. File them in chronological order and photocopy them if they might fade.

Payment file should have :

• Original invoices
• Date of payment
• Payment Voucher Number
• Mode of payment (by cash or cheque number)

Receipt file should have:

• Duplicate invoices of your company
• Date payment was received from customer
• Mode of payment (by cash or cheque number)

Cash file should be sub-divided into cash and bank balance:

• Inflow & outflow
• Date money received or paid.
• Companies involved.

Computerized System (Keeping Proper Records for IRAS)

You can use accounting software to work out the monthly income and balance sheet, i.e . if you know about bookkeeping. Otherwise just use MS excel to total up the monthly receipt, payment, and the final figures of cash and bank balance. Any experienced bookkeeper or accountant will be able to finalize your financial statements based on the accounting records you keep over the accounting period.

Unaudited financial statements for EPC and small companies

As most of the companies in Singapore are exempt private companies limited by shares or small companies with a yearly turnover of less than $10 million, employing less than $10 million of assets, or less than 50 employess. They are not required to have statutory audits. Instead these companies need to prepare Unaudited Financial statement which should have the following reports:

• Statement by directors
• Comprehensive Income statement (profit and loss)
• Financial position (balance sheet)
• Statement of Cash flows
• Changes in equity capital
• Notes to the financial statements

Just call 9489-9429 now if you need help in keeping proper records for IRAS. The one-to-one tuition (normally one to one and a half hour including basic bookkeeping and setting up your charge of accounts) will only cost you $150. If you need me to prepare Unaudited financial statement, the fee is $350!

Copyright 2021 © Annual Returns Singapore Keeping Proper Records for IRAS

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