Procedure After Formation of Company
Although you may have completed the arduous task of the formation of company, the administrative process does not simply end there. There are six steps that your company needs to execute, even after formation of company. This includes accounting and bookkeeping, preparation of financial statements, filing of income tax, registration of Goods and Services Tax (GST), employment of staff, and application of licenses.
- Accounting and Bookkeeping
Under the Singapore Companies Act, all companies registered locally are required to maintain books of accounts. This aids in the tracking of daily accounts and the preparation of financial statements for filing annual returns. Furthermore, these accounts allow firms to make informed corporate decisions and manage assets in an efficient manner.
- Preparation of Financial Statements
All companies are required to prepare year-end Financial Statements, summarizing the financial activities conducted during the accounting year. However, often only big companies need to have their financial statements audited for the filing of annual returns. Small private companies will not need to audit their financial statements if they fall under the small company audit exemption.
- Filing of Income Tax
After formation of company, another step to be taken is to file income tax. It is crucial for your firm to have a systematic process for filing tax. Thus, your firm should consider outsourcing tax management to a professional accounting company, such as OneStop Professional Services. Our team of highly trained professionals is guaranteed to streamline your tax filing process, ensuring that your taxes are filed in a productive and cost-efficient manner.
- Registration of GST
For firms that have turnovers surpassing $1million annually, it is compulsory for them to register for GST. However, firms that do not have turnovers surpassing $1million may choose to register for GST on their own accord. More information on GST registration is provided on the website of the Inland Revenue Authority of Singapore (IRAS) to determine the type of GST to be registered and to complete the registration process.
- Staff Employment
It is a no brainer that your firm would need to employ staff after the formation of company. For more reference, the Employment Act is Singapore’s main labor law that contains basic terms and working conditions for all types of employees.
- Application of Licenses
It is also mandatory for your firm to acquire specific licenses and permits after formation of company. For this to be done, your firm must first be registered under the Accounting and Corporate Regulatory Authority (ACRA). Businesses in certain industries, such as food and entertainment, will need to acquire licenses from various government agencies. For example, a café will need to obtain a Food Shop License and possibly a Halal Certification, while a karaoke store will require a Public Entertainment License. Failure to obtain the necessary licenses before commencing business operations could result in severe consequences. Hence, it is advised that your firm does thorough research on the licenses it needs to obtain. More information on the licenses required by each business may be found on the LicenseOne Portal.
Originally published by onestop-ca.com