Tax planning, by nature, involves effective use of available and legitimate strategies to minimize tax liabilities. This could be done by either deferring your tax or to avoid tax using certain tax-break provisions. Following with several tax crimes in Singapore, including tax evasion on rental income and joss paper company, PIC Fraud from management consultancy business, tax planning is believed to be one mechanism that is of paramount importance for the tax payer in contemporary business context.
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In many businesses and organizations, formal shareholders agreement is commonly put in place, even if it is not a legal requirement to do so. There are many benefits to having one, however. Companies are given the security of knowing that the operations of the business and the responsibilities the shareholders have are already taken into full consideration. Everyone within the organization will therefore understand what is allowed or disallowed and are informed of how decisions within the organization are to be made. This reduces the incident of conflicts that may arise between shareholders that could potentially disrupt operations and hurt the profitability of the business.
Many businesses, however, tend to delay drafting an agreement when they first start a new company. While this is not normally an issue, it makes better business sense to have one in place in the near future as different shareholders are bound to have differing opinions on how businesses should be managed. In addition, circumstances such as the economy can change. Misunderstandings can occur where shareholders disagree over profits sharing; leading to fracturing of the company and unnecessary stress.
Singapore remains as the top location of choice for businesses looking to register IP. Strong government support is a huge factor, especially with policies in place to assist entrepreneurs on a quest to turn “ideas into assets”. The nation’s legal system, fierce government support and a collective vision to turn Singapore into a Global IP Hub in Asia by 2020 are all great reasons that provide a pull for potential business owners and companies into the Republic.
That said, assets such as IP can tricky when migrating to “favourable tax jurisdictions ”, especially with governments issuing crackdowns on companies looking to evade tax. In the event that these IPs are undervalued, local governments could potentially issue taxes based on the value of the new assets, even if it has moved abroad to avoid hefty tax charges.
While Singapore will no doubt provide a strong global position and allows companies to operate efficiently, here are 3 essentials to consider for IP Migration into Singapore.
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Singapore is internationally known as a safe haven for both local and foreign entrepreneurs looking to set up their businesses. In World Bank’s annual “Doing Business” 2018 report, for instance, the nation is ranked 2ndamongst 190 global economies, miles ahead of other economic powerhouses such as the United Kingdom and the United States of America.
Similarly, international surveys such as the World Economic Forum has also ranked Singapore’s Intellectual Property (IP) laws as one of the best in the world. Large brand names such as Procter and Gamble as well as Mead Johnson have selected Singapore as their preferred location to invest in business and research and development – all of whom have listed strong IP laws as a factor in their decisions.
Here are the top 3 reasons why Singapore is an intellectual property haven.
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In today’s globalised age, all companies will need to constantly innovate to keep their competitive advantage and keep ahead. Any complacency or stagnation would have eliminated them from the race. According to the Global Innovation Index, Singapore ranked 5thmost innovative nation out of 126 economies, ahead of USA & Germany, and top innovative nation in Asia. As such, Singapore is a haven for many Small, Medium Enterprises (SMEs) and Multi-national corporations (MNCs). For companies to stay competitive in Singapore, they will need to innovate. Most importantly, they need to know how to protect their innovative ideas – their intellectual property.
Out of a population of 5.74 million, 4.71 million inhabitants in Singapore are Internet users, making the Internet penetration rate to be 82%. To access the Internet, the persons in Singapore mostly use their smart phones, laptops or desktop computers. This is based on figures released in “Digital in 2017: Southeast Asia”, a report produced by Hootsuite and We Are Social, looking at Internet, social media and mobile use across this region.
Topics: Start Up
From environmental concerns to food security to gender inequality, the issues that non-profit organizations in Singapore address are diverse. To-date, there is an estimated 140 international non-profit organizations in Singapore according to the Economic Development Board. As evidenced by the increase in non-profit organizations over the years, Singapore offers a conducive environment for such organizations to grow and thrive. It also can host your new ideas and programs that can benefit today’s world.
Topics: Start Up
As a prominent international financial centre, Singapore is truly a leading fintech hub. This is according to the “Connecting Global Fintech: Interim Hub Review 2017” by Deloitte, which rated 44 cities across the world based on an index performance score.
With key innovation areas such as investment and wealth management, compliance, cyber security and robo advisors, here are five reasons why Singapore is the best place to launch your fintech start-up.
Topics: Start Up
An ecosystem value of US$11 billion, a startup community of more than 2,000 tech startups, a leading place for top tech talent – this is a snapshot of the Singapore startup ecosystem which has gone from strength to strength over the years.
As a testament to the importance that Singapore places on startups, this year, the Startup SG branding was launched to deliver on a coherent brand identity and bring its support schemes under one umbrella.
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As leading cities in Asia, both Singapore and Hong Kong boast strategic advantages for businesses, namely open economy, strong rule of law, political stability, key geographical location, low and simple tax regime, business-friendly environment, world-class infrastructure, and educated English-speaking workforce.
Topics: Start Up