- NEWSLETTER,U.A.E
- May 16, 2024
In a recent move that promises greater economic transparency and regulatory integrity, the Ministry of Economy in the UAE has implemented stringent legislation. According to the newly enacted law, all companies operating within the UAE jurisdiction (except entities in ADGM, DIFC, and government sectors) must maintain an extensively updated ‘Corporate Register’.
This development took shape through the Cabinet Resolution No. 109 of 2023 and Cabinet Decision No. 132 of 2023. It marks the commitment of the government to combat financial discrepencies and enhance the business landscape in the country. In this guide, we have explained specific aspects of this mandate. Read on to understand its implications for businesses and actionable steps to ensure seamless compliance, avoiding hefty penalties.
The Corporate Register Requirement for Companies in the UAE
The Corporate Register serves as a foundational repository, carrying details about the organizational framework and governance of an organization. It goes a long way in fostering transparency and helping regulatory bodies and financial institutions carry out thorough due diligence. This significantly bolsters trust within the business environment in the UAE. New businesses must prepare their registers to be inspected within 60 days of their registration date. On the other hand, existing companies have just 30 days upon receipt of circulars regarding new rules to update and prepare their registers.
Each company bears the responsibility of maintaining updated corporate secretarial records, including the time of meetings between the board and shareholders, agendas, and notices. The authorities are likely to verify these records. The relevant licensing authority should be notified about any alterations to these records within 15 days. Besides, companies are required to update these documents on the government portal and submit the revised client documents.
Non-compliance with these mandates carries significant penalties, with fines of up to AED 50,000. Other potential consequences include temporary suspension of the trade license or closure of the business. Moreover, the licensing authority will scrutinize these directives to ensure transparency.
Conclusion
How Can the IMC Group Help You?
As a trusted advisory partner for businesses in the UAE, the IMC Group comprehensively understands the new challenges you are encountering in adapting to new regulations. Our proactive team of experts specializing in legal matters and compliance issues can assist you in complying with the fresh set of norms. Whether you have an existing company in the UAE and need to update records or have been planning to set up a new business, we can help you ensure meticulous documentation and full compliance with the latest set of laws.
- Publications
- May 14, 2024
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- NEWSLETTER,U.A.E
- May 14, 2024
The recently concluded “Investing in the Golden Triangle” conference in Egypt revealed promising investment opportunities in major economies in the Middle East. The agenda of this conference was to explore investment prospects in the UAE, Egypt, and Saudi Arabia (KSA). Prominent business and economic experts attended the conference to discuss the feasibility of establishing companies in these thriving economies. Emerging businesses eyeing a company formation in Dubai will find these insights valuable.
At the conference, industry leaders shared their opinions at a panel titled “Establishing Companies in the Golden Triangle Countries”. Prominent speakers from different organizations shared crucial tips on the process of company formation in these countries. They also shared some strategic insights and investment opportunities that new companies will find beneficial.
An overview of the investment landscape
Insights from the panel provided a comprehensive overview of the business infrastructure in Egypt, UAE, and KSA. Experts speaking at the conference focussed on investment opportunities in the Golden Triangle. They also guided the attendees on different relevant types of companies and legal frameworks in each of these countries.
The speakers also addressed crucial tax considerations and strategies while speaking at the conference. This would help new businesses invest strategically in the region.
One of the prominent aspects of discussion at the conference was the significant investment opportunity in Egypt. The country has made recent strides to improve its Ease of Doing Business, channelling substantial investments. Experts also highlighted the status of the UAE, which continues to be a dynamic business hub. Particularly, Dubai has been shaping the growth trajectory of the UAE. On the other hand, foreign investors are increasingly eyeing impressive prospects in Saudi Arabia.
Comprehensive Business Solutions
Experts speaking at the conference recommended a wide range of tailored services offered to companies and investors. Leading service providers like the IMC Group comprehensively assist foreign businesses in company formation in Saudi Arabia. Other services offered by top service providers include registering foreign businesses, obtaining commercial licenses, facilitating banking services, offering corporate training, and insurance options. Some of the service providers also provide investment consultancy to cater to the diverse requirements of the investors.
The IMC Group remains committed to assisting investors in establishing their enterprises in a cost-effective way in the UAE. Investors willing to expand their ventures to Egypt and Saudi Arabia can also benefit from its plethora of services, including accounting, banking solutions, immigration support, and wealth management.
The “Investing in the Golden Triangle” conference highlighted the immense business potential still untapped in the UAE, KSA, and Egypt.
- NEWSLETTER, GLOBAL
- May 14, 2024
One of the most interesting trends in global investment strategies reveals that family offices are increasingly looking beyond their domestic borders. With diversified investment portfolios, these entities are all set to capture global opportunities for growth. However, it’s imperative to have a comprehensive understanding of the global macroeconomic market while venturing into international markets. With private client and family advisory services from experts, you can gain a deeper insight into geopolitical dynamics and other aspects driving investment decisions.
Global Macro Trends to Understand
The performance of key economies like the US, India, China, and the Eurozone largely defines global investment strategies, shaping the macroeconomic landscape. 2024 witnessed a robust growth in the job market in the US. Around 303,000 fresh jobs were added to the economy in March itself. At 3.8%, the unemployment rate remained steady, and the economy is showing signs of resilience.
With a surge in wages, employees are earning around 4.3% higher compared to the previous year. However, fears of inflation loomed large, which surged to 3.5% in March 2024. However, strong corporate earnings and a positive economic outlook continue to fuel confidence among investors.
Challenges and Resilience in the Eurozone
Contrasting Outlooks: China vs. India
China and India share different economic outlooks. In 2024, China is expected to record a lower growth trajectory of 4.6%. By 2028, their growth is likely to further decline to 3.5%. This exposes the challenges China is facing while sustaining its previous levels of expansion.
India, in contrast, recorded a decent economic growth of 7.2% in 2022-23. The country also demonstrated a 6.0% YoY growth in the first six months of fiscal 2022-2023. Its GDP of 7.8% YoY in the April-June quarter of 2023 looks healthy. The IMF reveals that in 2024, the Indian economy is likely to grow by 7.5%. This reflects the resilience of India and its potential for long-term investments. Naturally, the investment strategies for a single family office in Singapore require careful consideration.
Promising Investment Destinations in the UAE and India
Regions like the UAE and India offer promising investment destinations for single family offices. The strategic location of the UAE, along with its business-friendly environment and efforts to diversify prospects make it an attractive hub for trade and investment. Recently, the UAE has done away with the FATF grey list, which signifies its commitment to combat money laundering activities and financing terrorists. These measures further bolster confidence among investors in its regulatory framework.
Some of the strategic investment considerations in the emerging markets include sectors like technology and innovation in India. Besides, embracing environmental, social, and governance principles enhances investment sustainability. As tactical approaches for mitigating risks and maximizing returns, single family offices must diversify into fixed-income and alternative assets in these countries.
Moreover, single family offices must look for initiatives like GIFT City in India and the VCC regime in Singapore. These initiatives help investors execute their innovative strategies. Besides, in the Middle East, investors should check regulatory frameworks like the DIFC and ADGM. They provide comprehensive structures for family offices as they explore international markets.
While global markets present tons of opportunities for single family office in Dubai, a professional mind can help you capitalize on macroeconomic insights. The IMC Group continues to be a top financial advisor for single family offices, comprehensively developing robust investment strategies.
- NEWSLETTER,SINGAPORE
- May 14, 2024
As Singapore continues to thrive as a global business hub, forward-thinking enterprises are looking to scale their commercial footprint in the country. As many as 9,000 Indian enterprises have expanded their operations in this dynamic hotspot of business. Besides benefitting from the conducive business environment in the country, the Singapore company incorporation process is easy.
In this edition, we will discuss some strategic considerations for global enterprises before venturing into company formation in Singapore. We have comprehensively evaluated the regulatory and legal aspects in Singapore, along with the prerequisites for forming a company in the country. Along with these, we have comprehensively discussed the tax obligations and priorities like access to talent.
The Legal and Regulatory Landscape in Singapore
- Monetary Authority of Singapore (MAS): MAS is the apex body overseeing financial services in the country as well as its central bank. MAS plays a pivotal role in regulatory oversight.
- Inland Revenue Authority of Singapore (IRAS): IRAS governs all tax-related matters in the country, serving as the national tax administrator.
- Accounting and Corporate Regulatory Authority (ACRA): ACRA serves as the national regulator for business entities, ensuring compliance and transparency.
- Singapore Exchange (SGX): SGX is the stock exchange of Singapore, which oversees the regulatory aspects related to public listings.
Essential Requirements Before Incorporating a Company in Singapore
As a business owner, you might be wondering how to set up a local company in Singapore.
Before incorporating a company in Singapore, businesses need to get themselves registered with the ACRA. Here’s the step-by-step process.
- The first stage involves choosing and submitting a unique name for your business. Business owners can choose from private limited companies, public companies, and unlimited companies, among other structures.
- The next step requires the company to appoint at least one director and secretary each. This is a mandatory step for every registered company in Singapore.
- One of the key benefits for foreign enterprises expanding to Singapore is that the country doesn’t impose any limitations on foreign capital limits. The minimum paid-up capital for a private limited company stands at S$1 for both domestic and foreign entities.
- Businesses also need a registered office address in Singapore which the public can access during business hours.
- Businesses are also required to register at least one principal business activity with ACRA, with the provision to declare up to two primary activities in most cases.
Tax Benefits and Obligations for Businesses in Singapore
- Territorial basis: Here, taxation applies to income sourced from within the country.
- Remittance basis: Income generated outside the country will be taxed only upon receipt within Singapore unless exempted.
In case the income is generated from a country outside Singapore like foreign entities or other branches, it will be taxed at 17% on the chargeable income. This norm works unless the business is granted a relief under the Economic Expansion Incentives Act or other applicable concessions.
Different types of taxes like income tax, GST, stamp duty, and withholding tax are levied as a part of the tax ecosystem in Singapore. All these taxes are charged at different rates.
Accessing Talent Pool in Singapore
- Employment Pass for managers, professionals, and executives meeting certain competency and salary criteria
- Overseas Network and Expertise Pass for highly skilled individuals or high-salary professionals
- EntrePass for investors establishing their ventures in the country
- S Pass for mid-level skilled workers
- Work Permit for foreign workers in particular sectors
Professional Assistance to Register a Private Company in Singapore
While forward-thinking ventures look to expand their operations in Singapore, navigating through the legal and tax complexities is challenging. The IMC Group continues to be your trusted partner as you brace up to register private limited company Singapore. With professionals on your side during the crucial process of company incorporation, you can confidently expand your venture to the dynamic business ecosystem in Singapore.
- NEWSLETTER,SINGAPORE
- May 13, 2024
An interesting investment trend reveals that single family offices in Singapore are increasingly showing interest in supporting eco-friendly investments. This marks a significant shift in financing strategies to ensure sustainability. Traditionally, nature conservation efforts in Singapore were designed by philanthropic organizations and governments. However, with wealth management companies serving high-net-worth families supporting such investments, the importance of environmental sustainability comes to the forefront along with financial returns.
Global Calls for Nature Conservation Financing
Over the last decade, the United Nations has been urging governments, financial institutions, and the private sector to step up in financing nature conservation. During Ecosperity Week, leaders emphasized redirecting financial flows towards activities that restore, sustain, and protect nature. Top family offices have taken initiatives to scale up regenerative agriculture and protect biodiversity. The IMC Group leads from the front, setting benchmarks in driving such investments.
Some of the leading family offices in Singapore are also focussing on driving investments that enhance ocean health. For instance, plant-based proteins and seaweed farming are some of the potential investment avenues recommended by these groups. Their commitment to sustainability is evident from the fact that they are mobilizing funds from affluent families for essential environmental purposes.
A Change in Mindset through Sustainable Investments
Established family offices in Singapore work with a profit-with-purpose philosophy. They visualize impact investments as a powerful tool to bring about positive changes at large scales. Their approach corresponds to the growing momentum in impact investing across Southeast Asia. A new generation of investors and entrepreneurs are driving this trend with sustainability in their mindset.
Even stock values reveal that companies with strong ESG scores outperform others, demonstrating the importance of sustainable investments.
Singapore as an Emerging For Sustainable Financing
In recent years, Singapore has emerged as a preferred hub for collaborations and partnerships in sustainable financing. Thanks to the consistent inflow of investment and talent, the financial and associated sectors in Singapore are poised to drive sustained innovation and growth. The commitment of Singapore extends to a push for a green economy. Reports reveal that private wealth managers are recommending investments in technologies that cut emissions and protect ecosystems. The goal is to generate revenue through investments focussed on nature. This falls in line with global efforts to address pressing issues like the loss of biodiversity and climate change.
The rise of impact investing also showcases a broader trend towards responsible finance. ESG considerations play a crucial role in driving investment decisions. As governments and institutions around the world come up with disclosures on climate and nature-related risks, investors are increasingly drawn to sustainable assets. These investments ensure a positive impact on the environment while delivering impressive financial returns.
Sustainable Investments with Family Offices in Singapore
Leading family offices in Singapore are poised to spearhead significant changes in the investment landscape. As sustainability emerges as a core aspect of investment strategies, financial institutions, family offices, and government bodies are likely to collaborate to maximize the impact of eco-friendly investments.
The IMC Group continues to be a trusted partner specializing in private client and family advisory services in Singapore. With professional advisors around, affluent families in the country can make strategic investment decisions for a sustainable cause to make the planet more resilient for future generations.
- NEWSLETTER,U.A.E
- May 13, 2024
Strategic Tax move from the UAE
Contrary to initial concerns, the corporate tax policies of the UAE is considered to be strategic. This decision redirects taxes back into the UAE economy, fostering a diverse revenue base beyond oil. The UAE has come up with a tactical stance to leverage tax revenues to strengthen its economic foundations and reduce its dependence on traditional sectors. This fosters long-term resilience and sustainability in the country.
The groundwork for this initiative involved forging an extensive network of 193 Double Tax Agreements (DTAs) with global tax jurisdictions. Naturally, global businesses are reaching out to corporate tax consultants in Dubai to remain on the right track with regard to tax compliance.
The DTAs serve as a cornerstone of the new tax strategy in the UAE. They assure businesses with protection against double taxation, fostering a favourable environment for international investments. The meticulous planning and execution of these agreements reflect the commitment of the UAE to nurture a business-friendly ecosystem.
Competitive Tax Framework
Comprehensive Tax Treaties in the UAE
The UAE addresses both direct and indirect corporate taxes through 193 DTAs. This provides attractive avenues for corporate entities to mitigate or eliminate taxes on their investments or profits. These comprehensive tax treaties offer clarity and predictability for businesses operating across borders, creating a conducive environment for cross-border investment and trade.
Dubai has secured as many as 92 double tax treaties covering various income streams. These include dividends, royalties, interest, and earnings from real estate. The strategic location of Dubai as a global business hub, along with its robust legal and regulatory framework, makes it a preferred choice for MNCs looking to venture into the Middle East.
How can International Firms Benefit from UAE’s Tax Policies?
Seek Professional Assistance with Tax Consultancy from Experts
With changing paradigms in the corporate tax regime in the UAE, international businesses would be looking for professional advice from reputed tax consultants. The IMC Group continues to be the first choice for global businesses struggling to respond to the evolving tax structure in the Middle East.
For detailed insight into the tax environment in the UAE, check out this 2024 UAE Corporate Tax Compliance Guide. With strategic tax planning and assistance from professionals, MNCs and foreign firms can position themselves as compliant entities in the dynamic business environment in the UAE.
- NEWSLETTER, GLOBAL
- May 13, 2024
Modern businesses thrive in a tech-driven ecosystem where industries across all verticals are witnessing a transformation in the way they operate. Successful businesses harness the power of technology to transform their internal operations. This goes a long way in streamlining internal processes, like HR payroll management services. With the right approach, businesses can minimize operational costs and fast-track processes.
Technology-backed HR processes enhance the experience of employees, defining their satisfaction with impeccable systems. This explains why forward-thinking businesses count on established firms for payroll outsourcing solutions. With a dedicated team of experts backed by futuristic technologies to manage payroll, you can craft a positive experience for your employees.
The equation between payroll management and employee retention
Regardless of the industry, global businesses are encountering the challenge of nurturing and retaining top talent. Researches reveal that enterprises investing in crafting better employee experiences are more likely to enjoy better performance and employee retention. Besides, a recent study published in the Harvard Business Review established strong links between the financial performance of businesses and employee experience metrics.
HR leaders across the world are looking forward to investing in revolutionizing recruitment operations with sophisticated technologies. This modernized approach and technological innovations refine the overall experience of employees. No wonder, why outsourcing payroll management is a highly effective measure to enhance employee retention.
Why do Businesses Need Robust Payroll Management Services?
Fulfilling the expectations of employees
Traditionally, employers used to enjoy complete autonomy over their payment schedules and modes. However, with shifting paradigms, employees reserve the right to choose their work schedules and payment modes.
Besides, the booming gig economy, fears of recession, and other economic uncertainties have driven major changes. For instance, employers now need to respond to on-demand pay, flexible payment methods, and other priorities of their employees. Currently, employees feel that they reserve the right to evaluate the money they earn.
Naturally, outsourcing payroll management ensures that businesses need not deal with the associated paperwork or processes to cater to such demands of employees.
Ensuring compliances
With the remote working infrastructure, employees remain distributed throughout the globe. New modules of employment like flexi-staffing, working from home, part-time payment, fixed-time working, and hiring freelancers have gained traction.
Moreover, such work regulations significantly vary across different sectors in various industries. No wonder, why businesses find it challenging to ensure compliance, given that failure to adhere to the established norms can invite hefty penalties. Outsourcing payroll management resolves this issue for global firms.
Take Advantage of Technology with Outsourced Payroll Management
Technological advancements are reshaping the modern payroll infrastructure. Businesses outsource their payroll services to benefit from faster, more intuitive, and more accurate payment mechanisms, thanks to technological advancements. Automation, in particular, streamlines repetitive tasks and does away with human errors.
Let’s check out how advanced technology is transforming payroll management.
1. Cloud systems
With cloud-based payroll management technologies, a global workforce can access smart solutions while enjoying scalability and flexibility. Particularly, business continuity plans (BCPs) find these features valuable as they look to expand rapidly.
Cloud-based payroll management also ensures that organizations can integrate new features and functionalities into their systems to ensure compliance. Today, successful businesses are using mobile apps for HR management, accessible to managers and employees from any location. This mechanism has also eased up the process of submitting timesheets, besides facilitating automated cloud backups.
2. Fraud detection
3. The Impact of AI
Using AI, organizations can enhance the experience for their employees. For instance, historical data analysis of payment data and stub analysis can help organizations create realistic compensation packages. AI can also respond to queries of employees 24/7, regardless of their time zones.
Moreover, auto-generated and customized reports provide valuable HR insights to help business leaders make strategic changes in workforce planning and compensation structures. With a data-driven approach to payroll management, employees enjoy a better experience altogether.
Professional Payroll Outsourcing Services to Streamline Your Operations
As a forward-thinking business, you might be seeking professional support to strengthen your payroll services and enhance employee satisfaction. The IMC Group is one of the leading companies offering global payroll outsourcing services, enhancing the experience for workforces across every sector. Seek a professional consultation to embrace technological excellence and transform your HR operations.
- Article, Global
- May 7, 2024
Contemporary businesses thrive in a dynamic growth environment, encountering a plethora of challenges during mergers and acquisitions (M&A). With the right strategies in place, these entities can ensure sustainable growth and resilience. While high-profile M&A deals look inspiring, successful businesses rely on established professionals for M&A transaction advisory services. Experienced minds from trusted organizations significantly mitigate the common challenges during M&A deals.
In this comprehensive guide, we have presented enterprises with the blueprint for successful M&A deals.
The Necessity of Programmatic M&A
Programmatic M&A holds paramount importance in the contemporary business landscape. While large-scale mergers and acquisitions grab attention, it’s the strategic execution of smaller, tactical transactions that often deliver substantial long-term returns with manageable risks.
This correlation is backed by authentic research, justifying the impact of structured M&A programs in understanding economic uncertainties and fostering resilience in the organization.
Programmatic M&A is not merely about the volume of deals. Rather, it deals with the tactical alignment with broader corporate objectives. Professional advisory companies proactively identify and pursue opportunities complementing their existing strengths, thereby addressing market gaps. A systematic approach to sourcing and evaluating deals enables organizations to enhance their competitive positioning and drive sustainable growth over time.
Challenges in Executing Programmatic M&A
Although programmatic M&A presents businesses with its suite of benefits, it comes with its set of challenges as well. One common hurdle is the divergence of views among key stakeholders. This leads to the loss of focus during M&A pursuits as the process lacks strategic cohesion. These challenges often arise due to a lack of clarity or alignment between the M&A strategy and the broader objectives of corporate entities.
Businesses also encounter challenges while handling multiple deals within a programmatic framework. This calls for a high level of coordination and integration across various business units. Organizations may struggle to prioritize deals effectively without a clear roadmap.
Programmatic M&A strategies also face challenges due to external factors like market volatility, regulatory changes, and geopolitical uncertainties. Thus, successful M&A deals require a resilient strategy, backed by proper planning and expert advice.
Crafting the M&A Blueprint
A comprehensive M&A blueprint addresses the common challenges of programmatic M&A. This guide aligns strategic objectives, deal sourcing, evaluation criteria, and integration plans, serving as a roadmap for proactive decision-making.
The blueprint begins with a thorough self-assessment. Professional advisory companies evaluate the internal strengths, weaknesses, opportunities, and threats through SWOT analysis to gain valuable insights. They also carry out a comprehensive market analysis to understand industry trends, market dynamics, competitive landscapes, and potential disruptors. Thus, organizations can identify attractive market segments, emerging opportunities, and potential acquisition targets.
The M&A blueprint also defines clear boundary conditions that govern the activities of the organization. These boundary conditions, often set by the CFO or board of directors, specify criteria like deal size, financial metrics, integration timelines, and strategic fit. Organizations can ensure disciplined decision-making and avoid pursuing deals that are outside their strategic scope with this framework in place.
Self-Assessment and Market Analysis
Defining Boundary Conditions
Identifying M&A Themes
The "Why" and "Where" Execution Strategies
The "How" Execution Strategy
The Power of a Well-Crafted M&A Blueprint
A meticulously crafted M&A blueprint by experts is indispensable for understanding the complexities of programmatic M&A. Established companies like the IMC Group offering mergers & acquisitions advisory services recommend the right integration strategies to business entities. Partnering with these experts can fortify the market positions of the integrating firms, driving sustainable growth amidst a dynamic economic environment.
- ARTICLE,SINGAPORE
- May 3, 2024
Indonesia and Singapore, both prominent members of ASEAN, share strong economic ties and opportunities for cross-border business ventures. For Indonesian entrepreneurs looking to expand their business horizons, Singapore continues to be a top choice. With a conducive environment for business free from corruption, a favorable tax regime, and an agile workforce available in the country, it makes sense to expand to Singapore.
Here’s a step-by-step guide Indonesia business to incorporate in Singapore that will streamline your business. We have comprehensively discussed the regulatory framework and incorporation process, along with expanding your presence to Singapore.
Why Are Indonesians Registering Their Companies In Singapore?
1. Easy Connectivity and Strategic Location
2. Favorable Business Environment
Singapore is undoubtedly one of the best countries for entrepreneurs, considering its ‘ease of doing business’. The latest report from the World Bank, released in February 2024 positions Singapore in the second place among all the countries. With a robust commercial infrastructure and connectivity to Indonesia, Singapore continues to be the preferred destination for entrepreneurs.
Singapore is also the only country in Asia to hold an AAA credit rating from the leading agencies across the globe.
The business registration process in Singapore is easy and involves minimal bureaucratic hurdles. This enables foreign companies to set up their businesses in Singapore in just 1 to 3 days.
3. Favorable Tax Regime
Indonesian businesses are choosing Singapore as their preferred commercial hub to capitalize on its favorable tax regime. At 17%, Singapore’s corporate tax rate is one of the lowest in the world. Moreover, foreign businesses can enjoy several tax exemptions and incentives in Singapore to reduce their overall tax liabilities.
Singapore has also signed a double tax treaty with Indonesia and several other countries. This secures Indonesian businesses from unnecessary tax liabilities while expanding internationally.
| Tax Type | Rates in Singapore | Approximate Equivalent in Rupiahs |
|---|---|---|
| Corporate Tax | Progressive: 4.25% to 17% | Rp 1,050,000,000 to Rp 105,000,000,000 |
| Goods and Services Tax | 9% (if turnover exceeds S$1,000,000) | Rp 10,500,000,000 |
| 0% (if exporting goods abroad) | ||
| Tax on Dividends | 0% | |
| Personal Income Tax | Progressive: 0% to 22% Example: Salary S$120,000: 6.6% Salary S$250,000: 12.3% | Varies based on salary Example: Rp 83,500,000 for a salary of Rp 1,260,400,000 Rp 320,000,000 for a salary of Rp 2,630,000,000 |
4. Robust Legal Framework
5. Strong Workforce
The highly skilled and flexible workforce in Singapore makes it a preferred business hub for Indonesian businesses. This workforce serves as a valuable resource for ventures expanding to Singapore. Therefore, Indonesian businesses can capitalize on the talented workforce of Singapore to innovate and foster better R&D. While accessing a dynamic global market, they can improve their products significantly.
Singapore has a strict immigration policy in place. This ensures that highly skilled and qualified foreign workers can find a place in the country. This boosts the overall quality of human resources in the country.
6. Financial Services and Funding
Singapore offers several sources of funding to global businesses. Indonesian enterprises can take advantage of the local and international banks in Singapore for funding. Besides, the country has numerous venture capital firms and private equity investors to finance expansions.
In Singapore, the financial ecosystem is well-regulated. Its strong credit ratings make it simpler for businesses to obtain financial privileges like loans at competitive rates.
7. Strong Support from Government
The pro-business policies of the government in Singapore offer strong support to foreign companies. Government agencies like the Economic Development Board (EDB) and Enterprise Singapore assist Indonesian companies expand their ventures.
Working with these agencies can help Indonesian entrepreneurs with professional advice, support, financial assistance, and access to valuable business resources.
How To Register a Foreign Company In Singapore?
Let’s check how to register a foreign company in Singapore as an Indonesian entrepreneur.
To register your company in Singapore, foreign nationals need a local address, a resident director, and a corporate secretary. The corporate secretary is responsible for lodging and filing the necessary documents, as per the legal requirements.
For Indonesians launching their companies in Singapore, having at least one local director is mandatory. Your business can have as many directors as you want.
As a new business expanding to Singapore, you may not have someone ready to serve as a resident director. In these cases, it’s advisable to hire a nominee director. In case you decide to obtain an employment pass and move to Singapore, you need to appoint the nominee director for 3 – 6 months. On completing the formalities, you can be the director of your company in Singapore.
How Much Does Company Formation In Singapore Cost?
| Cost Category | Estimated Range in SGD | Estimated Range in IDR |
|---|---|---|
| Incorporation Services | S$2,550 (Bonanza Package) | Rp 26,800,000 |
| Necessary Services (1st Year) | Included in Bonanza Pack | Included in Bonanza Pack |
| Nominee Director Service | S$0 – S$2,550 | Rp 0 – Rp 26,800,000 |
| Employment Pass | S$800 | Rp 8,400,000 |
| Dependant Passes | S$400 | Rp 4,200,000 |
| Licenses/Permits (Industry Dependent) | S$50 – S$500 | Rp 525,000 – Rp 5,250,000 |
| Monthly Office Rent | S$550 – S$800 | Rp 5,800,000 – Rp 8,400,000 |
| Employee Salaries (Software Engineer) | S$4,000 | Rp 42,000,000 |
| Employee Salaries (Security Guard) | S$1,700 | Rp 18,000,000 |
FAQs
Why is Singapore an attractive destination for Indonesian entrepreneurs?
Do I have to be present in Singapore to run a business as an Indonesian citizen?
After starting my business, can I move to Singapore?
Yes, you can. For this, you need to obtain an Employment Pass, a special type of visa, which is generally processed within 3 to 6 months. The minimum eligibility criterion to obtain this pass is to earn a salary of S$5,000 at least. This is a standard salary for all university graduates in Singapore. Mature business owners should be earning around S$6,000-S$8,000 (Rp 63,000,000-84,000,000), particularly if they want to bring their family to Singapore under Dependant Passes.
Do I have to hire employees in Singapore to run my business?
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- 1800 + Global Partners
