Singapore

Overview

Singapore, also known as Republic of Singapore, is a multi-cultural city-state along with being a globally recognized financial and commercial center. With a population of over 5.6 million, it is one of the best places to do business in Southeast Asian region. Investments by foreign business organizations are encouraged by the government as a result of the political constancy. Singapore is considered a thriving ground for multinational companies.

Global Upside assists organizations/businesses in hiring employees in Singapore area along with a legal entity establishment.

  • Global Upside manages services such as talent acquisition, human resources, accounting and payroll globally. Our team provides an end-to-end service to keep all the business operations running smoothly.
  • The hiring process in France can be complicated, not to mention the time-consuming and expensive process of starting a branch office. We help to lift that burden from your business.
  • We not only hire employees on your behalf, but also take care of any legal formalities involved.

Capital City

Singapore

Currency

Singapore Dollar (SGD)

Language

English, Mandarin Chinese, Malay

Government

Republic

Country Overview

Singapore is the world’s most competitive economy and also one of the best countries to develop business relations with. Here are a few interesting facts about Singapore:

  • The richest economy in terms of per capita GDP in Southeast Asia.
  • Ranks on top in the global list for easiest countries to start a business with.
  • Low corruption rates and pro-business setting.
  • Radical infrastructure.
  • Exceedingly trained workforce.
  • Viable policies to handle the finances.
  • Apparent legal agenda to accelerate the country’s success.

Legal Background

Singapore has a legal system that is based on the system of English common laws, however, there are certain differences. The legal authority is the Constitution of the Republic of Singapore, and this is the supreme law in the country.

  1. All the court procedures in Singapore is similar to the legal proceedings in England.
  2. Remote decisions from few Commonwealth authorities are laterally enforceable in agreement with the Reciprocal Enforcement of Commonwealth Judgments Act.
  3. The Reciprocal Enforcement of Foreign Judgments Act has listed the Hong Kong SAR judgments under it.
  4. Negotiation and settlement are available as modes to resolve any form of dispute that is applicable to both domestic and cross-border differences.

In the past few years, Singapore has proven to be a prime location for all international conciliation and is also reputed in the Asia-Pacific region. Alliances that are looking for resolutions by court can present their disputes to the Singapore International Commercial Court (SICC).

Legal Entity Setup

There are various business structures or forms of establishment of a business and they are:

Branch Office

Branch Office is registered as an expansion of the parent company and not as an independent entity. Nevertheless, the legal responsibilities are taken care by the parent company.

Representative Office

Representatiove Office is listed as an interim arrangement which conducts all the marketing including the R&D activities. There is no legal status and a representative office should not engage in any kind of profit yielding activities.

Company or Limited Liability Company (LLC)

The parent company is a shareholder in a LLC and this is the most favored choice when it comes to registration in the country.

Sole Proprietorship

Sole Proprietorship is not an independent incorporated entity and the business and owner are the same. Here, the owner owns all the assets and liabilities of the firm.

Partnership

Partnership allows a group of two or more individuals to form and co-own the business.

The time of establishment of a legal entity setup in Singapore usually takes around two weeks to two months.

Human Resources

As per the Employment Act of Singapore, employees who have been hired after April 1, 2016 need to be provided by KETs or key employment terms, by the employers. This documentation includes the following details –

  • Name of the employer in full
  • Name of the employee in full
  • Date of joining
  • Job title and description along with the responsibilities
  • Extent of the employment agreement, if relevant
  • Remuneration and bonus
  • Working hours and overtime
  • Probation or training clause, if relevant
  • Perks and benefits for the employee
  • Leaves and public holidays
  • Insurance and medical benefits
  • Termination policy

The key employment terms must be issued to the employees within two weeks of their joining. To know more about the details, you can visit the website and register.

Payroll

The employers in Singapore need to pay the employee salaries no less than once a month or at smaller intervals as per their rules.

Accounting

The accounting standards are recognized as Singapore Financial Reporting Standards (SFRS) and are based on the International Financial Reporting Standards (IFRS).

Taxation

Corporate Tax

The national tax rate of Singapore is single tier and is 17%.

Goods & Services Tax

A 7% GST is imposed on the supply of goods and services in Singapore.

Data Privacy/ GDPR

The PDPA also called Personal Data Protection Act is the most important legislation which ensures the protection of personal as well as consumer data. In addition to this, there are many other laws that covers data protection of a company and also an individual.

Nonetheless, as per the PDPA, an employer can not only collect but also use and disclose an employee’s details for official purposes. This can be for either management purpose or to terminate a contract as long as the employee is aware of the reason.

Anti-bribery & Anti-corruption Law

The Prevention of Corruption Act or PCA is the primary law for anti-corruption in Singapore. Corruption has been defined as a bribe that is offered in return for any kind of a favor. Bribes have been classified into 2 forms – monetary and non-monetary – as described below:

  • Gifts, loans, rewards, commissions, fees, money or any other property of any description.
  • Any form of office contract or employment.
  • Any kind of release, liquidation or discharge of loan, payment or any other liability.
  • Favor, advantage or service of any kind.
  • Any promise, undertaking or offer of gratification.

Furthermore, there are penalties that can be issued if anyone is found guilty of any wrongdoing. They shall be accountable and penalized a fine of $100,000 or to a forcible detention of 5 years.