Call Us Today

(+65) 6677 4258
(+65) 8262 1713

Office Hours

Monday to Friday: 9.30 am to 6.00 pm
Weekend and Public Holiday: Off

SINGAPORE BUDGET 2025

SINGAPORE BUDGET 2025

by | 21 Feb 2025 | Accounting

Introduction

Singapore’s Budget 2025, themed “Onward Together for a Better Tomorrow,” presents a strategic roadmap focused on both immediate economic recovery and sustainable long-term growth. Arriving at a pivotal moment, marking Singapore’s 60th year of independence, the budget addresses global uncertainties and aims to strengthen Singapore’s resilience and collective spirit.

Key Highlights

  • Corporate income tax rebate and cash grant, up to S$40,000
  • New, redesigned and extended initiatives to support rising labor costs, workforce transformation and hiring diverse workers
  • Extended schemes for global expansion and new financing alternative
  • New tax deduction for cost-sharing agreements for innovation activities
  • S$3 billion top-up to National Productivity Fund to reduce operational costs
  • New Global Founder Programme to attract international founders to Singapore
  • Tax incentives for fund managers and entities to revitalize Singapore stock market
  • Tax deduction for equity-based remuneration schemes
  • More than S$10 billion Investment in R&D and infrastructure
  • New Enterprise Compute Initiative to support use of artificial intelligence (AI)
  • New Private Credit Fund for high-growth local enterprises
  • S$5 billion top up to Future Energy Fund

ADDRESSING SME PAIN POINTS AND SUPPORTING BUSINESSES

Recognizing the difficulties businesses face, the key measures in the Budget 2025 focus on easing the cost pressures and supporting companies navigate the current economic climate, and their workforce development efforts.

Raising Cost Pressures and Demanding Challenges

The budget acknowledges the challenges faced by Singapore’s small and medium-sized enterprises (SMEs). With rising costs and pressure on profitability, the government is extending multiple support schemes to assist SMEs in navigating these difficulties.

Like the Corporate Income Tax (CIT) Rebate and CIT Rebate Cash Grant granted for Year of Assessment (YA) 2024, companies will receive a 50% CIT Rebate for YA 2025. Active ones, employing at least one local employee in the Calendar Year 2024, will receive a minimum cash grant of S$ 2,000. The total benefit under this initiative is capped at S$ 40,000 per company. This measure provides substantial financial relief for struggling companies.

Extending Multiple Support Schemes

The SkillsFuture Enterprise Credit was redesigned, where companies with at least three local employees will receive a fresh S$10,000 credit to defray the costs for workforce transformation. Next, a new co-funding (SkillsFuture Workforce Development Grant) with support up to 70% is introduced for job-redesign activities.

The Progressive Wage Credit Scheme is extended. The co-funding percentage increases from the current 30% to 40% in 2025, and 15% to 20% in 2026. Due to the 0.5% increase in Employer’s CPF contributing rates for senior workers, the CPF Transition Offset and Senior Employment Credit schemes will be extended for another year. To meet the increased financing needs, the Enterprise Financing Scheme (EFS) has also rolled out major updates:

  • EFS – Trade Loan cap goes up permanently from S$5 million to S$10 million
  • The scope in EFS – Mergers and Acquisitions Loan includes targeted asset acquisitions from 1 April 2025 till 31 March 2030.

SUPPORTING GLOBAL EXPANSION AND HIGH-GROWTH ENTERPRISES

Aimed to provide more support for local SMEs for overseas expansion, Singapore government extends the schemes for internationalisation, and mergers and acquisitions (M&A).

Market Readiness Assistance (MRA) Grant Extended

Expiring on 31 March 2025, the MRA grant of S$100,000 per new market will be extended until 31 March 2026.

The grant provides support for overseas market promotion, business development, and market setup costs, helping companies access new markets and expand their global footprint. Businesses can get support for multiple markets at the same time.

Double Tax Deduction Scheme Enhanced

The Double Tax Deduction for Internationalization (DTDi) scheme will continue until 31 December 2030. Businesses can claim 200% tax deduction on qualifying market expansion and investment development expenses under this scheme. Companies can use both DTDi and MRA support for the same expenses, with tax deductions calculated after subtracting the MRA grant.

More Financing Options

Singapore’s Budget 2025 introduces a S$1 billion Private Credit Growth Fund to help high-growth local enterprises bridge financing gaps. This initiative underscores the government’s commitment to providing more financing options and raising awareness among SMEs about emerging private credit as a form of capital, without the need for bank borrowing or equity selling. This introduction has brought light to those companies which are not eligible for bank loans.

TRANSFORMING BUSINESS MODELS AND BOOSTING PRODUCTIVITY

The budget recognizes the need for Singapore companies to transform their business models in response to changing customer demands and technological disruption. Initiatives aim to boost productivity and efficiency through the adoption of digital solutions.

Driving AI Adoption and Digital Transformation

Recognizing the transformative potential of artificial intelligence, S$150 million has been set aside for a new Enterprise Compute Initiative to enhance AI adoption among local enterprises. Eligible businesses will collaborate with major cloud service providers to access AI tools and computing power, as well as consultancy services. This effort helps companies leveraging AI solutions effectively in their business transformation and fostering innovation and competitiveness in the global market.

Companies are encouraged to adopt digital tools and technologies to reshape their operations and improve customer service. The government also provides support for skills development, ensuring the workforce is equipped to adapt to the changing demands of the digital economy.

CONCLUSION

Singapore’s Budget 2025 represents a strategic effort to address immediate challenges, support businesses, and position the nation for long-term sustainable growth. With a focus on innovation, workforce development, regional integration, and sustainability, Budget 2025 aims to create a resilient and thriving economy for the benefit of all Singaporeans.

Transition from Pandemic to Endemic

Transition from Pandemic to Endemic

by | 4 Oct 2023 | Business Tips, News

Smooth Transition to the New Normal

Although the recovery rate is increasing, Singapore has been recording a rise in the spread of Covid-19. The number was even double in the recent September.

As of May 2023, 2.4 million cases and 1,722 deaths were reported, which is relatively higher compared to the earlier reported 2.3 million cases and 1721 deaths in the same month.

By changing health care protocols and gradually easing restrictions, the government hopes to create an environment in which we can all live with the virus – an endemic.

So, for the most part, cars are back on the roads, business is opening up, and people are returning to daily commutes on public transport.

One question remains: with the rising numbers, what measures have been put in place to curb the spread while supporting business continuity?

New Changes

As part of the transition, Singapore government announced new changes to its COVID policy. Here are the major changes:

1. Vaccination and Mask-wearing

Vaccination-Differentiated Safe Management Measures (VDS) were lifted on 10 October 2022. Subsequently, Safe Management Measures (SMMs) have stepped down from 13 February 2023, except for mask-wearing. This SMM is not as strict, which is only required for visitors, staff and patients in healthcare and residential care settings. Not compulsory on public transport. The prudent public continue wearing although this has become optional.

Consecutively, all employees are allowed to return their workplaces, regardless of their Covid-19 status. The work-from-home arrangement for employees, who are tested positive for Covid-19 but physically fit to work, are controlled by the employers. Anyone, tested Covid-positive, does not have to inform a statutory body.

2. Border Changes

There have also been changes to Singapore’s border measures. As of 13 February 2023, Singapore has lifted all Covid-19 border requirements. That means there are no more restrictions for travellers regardless of their profile or Covid-19 status.

Tips for Singapore Businesses

These changes are welcome news for business but also raise several concerns, like how to stay safe and achieve sustainable growth in such uncertain times. Thankfully, this post offers several tips on how to do that.

Here’s how you can safely make it through this period of uncertainty.

Consult with your stakeholders

Your employees, customers and other partners will have different opinions on the return to work. Carrying out a stakeholder meeting will help you to gain feedback and understand who they are so you can consult with them as needed.

They will likely hold opposing views. Some will be excited for the return to “normal,” while others will be more apprehensive.

You need to consider all these opinions and factor them into the decisions you make. Empathy mapping can be an excellent tool for understanding stakeholder options.

It can help you balance different needs and develop a balanced approach to reassuring those who are unsure about returning to the workplace.

Seek out new opportunities for growth

Now that restrictions have eased, you should seek out ways to expand your business. Don’t hesitate to create a budget for these opportunities.

Whether it involves integrating a new IT solution into your operations or implementing a new sales strategy, you should invest in resources and knowledge that will help your company grow sustainably.

Embrace flexible work arrangements (FWAs)

The government of Singapore acknowledges the need for work-life balance in promoting business continuity and productivity. As such, it is set to release guidelines on flexible work arrangements in 2024.

But how prepared are you to embrace these changes? You can take this time to review the suggested changes and how they will impact your business.

Identify what your employees need and the needs of your business so you can optimally reap the benefits of the suggested FWAs. It will also help in establishing a smooth transition come 2024.

Go Digital

41% of Singapore SMEs who embraced digitalisation in 2021, reported a rise in their sales revenue. Consequently, 6 in 10 SMEs who were hesitant to adopt digitalisation reported lower revenue in 2020 than in 2019.

Considering the disruption Covid-19 has caused, going digital cannot be a luxury any longer. It should be your priority. The government has launched a program to help with the process, which should make things easier for you.

Joining the SMEs Go Digital program makes you eligible for the Productivity Solutions Grant (PSG), which grants you access to various pre-approved digital solutions.

Going digital will create new opportunities for your business to explore. The government initiative, in particular, offers several benefits that include:

● Smart matching, where the local SME suppliers will get recommendations to possible overseas clients
● Optimised listings on overseas electronic marketplaces
● Quick access to available financing methods
● Access to reliable supply chain partners, like logistics companies that offer last-mile delivery, if you need the service.

Embrace remote and hybrid work arrangements

Covid-19 revealed the possibility of remaining productive during uncertain times. Many businesses were hesitant to adopt remote work arrangements. But as the pandemic proved adamant, they had no choice but to cope.

Embracing remote work not only keeps you moving during uncertain times but also cuts costs. You cannot have all your employees at the office, which means you can save on office space budget.

Besides, embracing remote work means you can tap into the top talent globally, which is also part of helping you to spread your wings and gain more visibility.

Make smart budget choices for your business

Despite the ease in restrictions, many sectors of the economy are yet to recover.  This means it may take a while before you achieve the same level of performance as before the pandemic.

The choices in your financial management during this period will significantly affect your business. Here are some tips on managing your finances:

●  Make a budget and follow it. It’s easier to manage finances when you have a budget and the updated accounts for reference.

They will help you determine where your money is spent and evaluate whether you’re spending too much or too little on crucial business processes.

●  Spread out your expenses. It’s okay to invest in materials, equipment, and training for your employees. However, you shouldn’t attempt to do everything all at once.

Spread out your expenses so that your purchases won’t force you into an uncontrollable debt spiral.

●  Be frugal: This is not to say, you should be extreme, but do your best to reduce costs in all aspects of your business. For example, you should look for ways to negotiate better deals with your suppliers before signing a contract.

Something else to consider is determining the strategies for consuming your finances.

●  Have a cash reserve: Keeping a cash reserve will help you compensate for unexpected events (like new restrictions) without the need to take a corporate or personal loan, even if you have a decent credit score.

Keep your employees safe

 

Ask your employees to get the vaccine if they haven’t done so yet but are eligible

Nearly 90% of Singapore’s eligible population have been fully vaccinated. But if your employees aren’t among this number for some reason, it’s crucial that they take the shot.

The Delta variant that has been spreading through the country is more infectious than the earlier forms of the virus and may cause more severe illness. There’s the threat of new variants, too.

The vaccine will limit the chances that they will catch the virus and prevent serious illness, even if they do.

Even though the government has lifted the social distancing requirements and declared mask-wearing indoors and outdoors as optional, these safety guidelines are essential for your organisation.

Distancing

The end of restrictions means a return to the hustle and bustle of daily life. But that doesn’t mean you should be less vigilant.

Respiratory illnesses like Covid-19 spread through coughing, sneezing, and close contact. Keeping a safe social distance (whenever possible) will keep you safe.

Keep your mask on

Evidence shows that wearing a mask will reduce your risk of exposure to airborne Covid-19 droplets, thereby reducing the chances you will get sick.

A recent study which looked at coronavirus mortality across 198 countries found that those whose cultural norms and government policies encouraged mask-wearing had significantly lower death rates.

Two compelling case reports also suggest that mask-wearing would be a great strategy during the transition.

In one report, a man on a flight from China to Toronto was discovered to be Covid-19 positive. He had a dry cough and wore a mask during the flight, and all 25 people nearest to him tested negative for Covid-19.

In another report, two hair stylists in Missouri were in close proximity to 140 clients while sick with Covid-19. Everyone wore a mask, and none of the clients was tested positive.

You and your employees should wear a mask whenever you are in indoor public spaces. You may want to do the same in outdoor areas with several Covid-19 cases and for business activities that involve close contact with others, who have not been fully vaccinated.

Conclusion

Despite the uncertainty over how things will turn out. There are reasons to be hopeful. Singapore has one of the highest vaccination rates in the world, so most of us are already protected from severe COVID-related health conditions.

We also have substantial health resources and experience from managing other public health crises. These strengths constitute a resilient healthcare system, so you can rest assured that the situation will improve eventually.

Five Ways To Reduce Your Corporate Income Tax Legally in Singapore

Five Ways To Reduce Your Corporate Income Tax Legally in Singapore

by | 12 Dec 2022 | Business Tips, Corporate Tax, Taxation

Five ways to reduce your Corporate Income Tax legally in Singapore

 

Tax avoidance is illegal!
Tax reduction is legal!

Year of Assessment 2022 (deadline was 30 November 2022) for Corporate Income Tax is over! Businesses are now getting ready for the GST rate hike from 7% to 8% which will take effect on 1 January 2023. When it comes to corporate taxes, businesses will also have plenty to tinker about as we head into the festive season in December as well as year 2023.

Company (both local and foreign) is taxed at a flat rate of 17% of its chargeable income. While the prevailing Singapore corporate tax rate of 17% is one of the lowest and most competitive in the world, there are still ways for businesses to further reduce their tax bills.

#1 Tax Exemption Schemes

Eligible newly-incorporated companies may enjoy the Tax Exemption Scheme for New Start-Up Companies for their first 3 consecutive YAs from incorporation (75% on the first S$100,000 and 50% on the next S$100,000).

What if you’re not a newly-incorporated company? Fret not!

All other companies enjoy a partial tax exemption (75% on the first S$10,000 and 50% on the next S$190,000). Below is an illustration:


With the above tax exemption schemes, they can bring effective tax rates to as low as 4.25% for newly incorporated companies and 7.93% for all other companies, depending on chargeable income.

#2 Business Support Schemes and Incentives

To promote the growth and expansion of businesses in Singapore, the Singapore government offers a variety of business assistance schemes and incentives to start-ups, small to medium-sized enterprises (SMEs) and Multi-National Enterprises (MNCs). This below guide provides an overview of some of the most common schemes and incentives currently available:

#3 Reliefs / Tax Credit

Exemptions On Foreign-Sourced Income for Tax Relief

Income earned / received from outside of Singapore is considered foreign-sourced income and is usually taxable.

Foreign income earned by Singapore company may be subject to taxation twice – once in the foreign jurisdiction, and a second time when the foreign income is remitted into Singapore.

The Avoidance of Double Tax Agreement (DTA) is a scheme available for Singapore tax resident companies to claim benefits.

Singapore resident companies can also get tax exemption on foreign-sourced income remitted into the country that is specified if it falls under these 3 categories:

  1. Foreign-sourced dividend
  2. Foreign-sourced service income
  3. Foreign branch profits

Foreign Tax Credit (FTC)

Companies may claim FTC for tax paid in a foreign jurisdiction against the Singapore tax payable on the same income. There are 2 types of foreign tax credit that Singapore company may enjoy to alleviate the double taxation suffered.

Group Relief (GR)

Under the GR system,

  • Companies in the same group are treated as if they are 1 single company.
  • It enables companies to deduct current year unutilized capital allowances / trade losses / donations of 1 company from the assessable income of another company in the same group.

Loss Carry-Back Relief

It allows a 1-year carry-back of current year unutilised capital allowances and trade losses. Companies can offset losses in the current year to claim back taxes paid in the immediately preceding year.

#4 Donation to any approved Institution of a Public Character (IPC) 

It is often said that Christmas is a season of giving! To encourage corporate volunteerism, businesses may claim 250% tax deduction on qualifying expenditure incurred from 1 January 2016 to 31 December 2023 if they are made to an approved IPC or to the Singapore Government to benefit the local community (also referred to as ‘approved donations’).

Below is an illustration: –

A company with its financial year from 1 Jan 2022 to 31 Dec 2022 made donations of $1,000 in Feb 2022, of which $800 are approved donations.

#5 Ad-Hoc Medisave Contributions to Employees

Under Section 14(6A) of the Act, claim of medical expenses incurred for the basis period is restricted to 1% of the total remuneration of the Company’s employees. A 2% tax deduction cap is however available to companies participating in the Portable Medical Benefits Scheme or Transferable Medical Insurance Scheme subject to certain conditions.

Under the Additional MediSave Contributions Scheme, companies can make MediSave contributions of up to S$2,730 per employee per year. Effective from 1 Jan 2018, the capping limit has been raised from $1,500 to $2,730 per employee per year, as an encouragement to companies to make more contributions to their employees’ MediSave accounts for their medical needs. These contributions are tax-free for employees and employers may also gain relevant tax benefits. Further, for the employees, it provides them with healthcare security.

Under such scheme, companies will enjoy the additional tax deduction beyond the 1% limit on the amount of ad-hoc MediSave contributions made, up to the higher medical expenses tax deduction limit of 2%. This is even if the company does not adopt any of the portable medical benefits arrangements. Below is an illustration: –

Conclusion

To conclude, Singapore has a very attractive tax system. With its competitive corporate income tax regime, diversified tax incentives and financial assistance schemes, minimal compliance costs as well as absence of bureaucratic barrier, they certainly make Singapore the first choice for companies and businesses looking to set up and/or relocate to favourable corporate tax regimes.

If you are still uncertain to finding the best strategy to reduce your corporate income taxes in Singapore, let Mighty Glory Corporate Solutions to manage your taxation matters. We keep up-to-date to changes and modifications within the local law and regulations. Most importantly, we help you to stay compliant with local regulations!

 

COVID-19 Survival Kit: Cloud Accounting And Outsourcing Services

COVID-19 Survival Kit: Cloud Accounting And Outsourcing Services

by | 29 Oct 2021 | Accounting, Business Tips

Why Cloud Accounting Is More Popular Since The Pandemic? And How Outsourcing Can Support Your Business?

Cloud accounting is not a new business innovation. It started with the first cloud accounting solution, Xero since 2006. In the past, companies have always viewed it as a new solution made for more advanced enterprises. Many SMEs especially put it on the back burner, focusing on other urgent priorities for their business growth.

Within the past year, the pandemic changed the situation. Priorities were flipped. A global crisis was the perfect set-up to showcase the superiority of cloud accounting over the traditional accounting system. For SMEs, all of the reasons preventing them from switching to cloud accounting solutions, become the motivators to adapt to a new norm to ensure the survival of their businesses.

1. “The existing system is broken.”

Pre-COVID:

One of the main barriers of converting to cloud accounting was that the traditional accounting system was working fine — It was not broken, and businesses didn’t see a need for a “fix” or upgrade. It was a solid 6/10, albeit slightly outdated. Cloud accounting merely bumps it up to an 8/10 with its efficiency benefits.

Post-COVID:

As countries start going into lock-down situations like a circuit-breaker, companies have weeks or days to find alternative solutions to ensure that daily operations can continue to run. Being forced into remote working, accessing hardcopy documents or bookkeeping from snail mails have become unproductive or virtually impossible. The traditional accounting system starts to reveal its weaknesses, and functions like an unreliable 3/10. This often ends up in cluttered, disorderly inboxes and frequent miscommunication over the phone or video calls. Switching to cloud accounting systems then, becomes increasingly attractive.

2. “I can’t get hold of people or documents when I want it.”

Pre-COVID:

Traditional accounting systems allowed real-time verification of information. You know where and when to find your staff or vendors, and vice versa. These are often done face-to-face when amounts are huge or when it’s a new expense. There is an established level of trust when information is passed via those tried-and-tested real-time communication channels.

Post-COVID:

Losing the face-to-face interaction has resulted in delays, miscommunication, mistakes, frustrations, and in turn lost trust. It demanded last-minute new standard operating procedures like email records to compensate for accountability loopholes. The previous system was not designed to cater to remote working situations. When the backbone of the business operations is dysfunctional, it loses its ability to withstand impacts during turbulent times. This is where cloud accounting shines — it ensures business continuity with remote workforces and supports seamless online collaboration, even within a pandemic situation.

3. “There is a higher demand for online services.”

Pre-COVID:
Businesses offering online platforms or services are seen as the trend-setters, not as the norm. Customers who demanded those services are typically the young or the tech-savvy, and restricted to certain industries. Whenever a new change is introduced, there’s bound to be resistance from various stakeholders.

Post-COVID:
With the COVID-19 pandemic, everything has to be shifted online as physical supply of many goods or services are not readily available. Digitalisation is no longer limited to a selected group of early adopters. When the masses have to learn how to do everything online, online business services boomed overnight. This change in purchasing behaviour has led to all stakeholders — customers, staff, suppliers, partners, government agencies, unanimously embracing online services. Online shopping & entertainment, home deliveries, video-streaming, e-learning, virtual troubleshooting and more are adopted with unprecedented openness. The ease of transitioning into cloud accounting helps to accelerate the process of shifting businesses online.

How Outsourcing Complements Cloud Accounting

The case to go into cloud accounting for SMEs is overwhelming since the pandemic. As companies invest in cloud or SaaS services, the benefits of outsourcing solutions have become more apparent.

1. Efficient deployment of human resources

Just like how cloud computing reduces the need for tech support from IT personnel, cloud accounting enables you to streamline your accounting needs. Instead of a hiring or firing decision during uncertain times, you can scale up or downsize your business by adjusting your accounting package. Outsourcing mundane tasks such as bookkeeping and administrative work also enables you to focus on higher priority business actions, adding more value to your business growth in the long run.

2. Real-time accessibility anywhere

Because anyone can view data, access bank accounts, track inventory, expenses, sales etc. anytime and from anywhere, cloud accounting is really made for work-from-home situations. This means even if you outsource to a third party, all your accounting and compliance-related matters can be kept updated without having an in-house accountant.

3. Automate work processes and eliminate paperwork

Cloud solutions not only remove the costs of keeping hardware and software in-house, it also helps SMEs work smarter and more efficiently by saving time to manually sort out bills and expenses. With outsourced corporate service providers, your online accounting system is set up from day one with perfect accuracy to eliminate erroneous entries and tedious transaction reconciliations.

4. Wide range of expertise in accounting and corporate services

For small businesses, relying on one accounting staff to keep up with changing business policies is a tough order, especially during the pandemic when fast business decisions need to be made as new regulations are announced from time to time. Because outsourced accounting service providers serve several clients at one time, they continually improve their qualifications and skills to stay competitive, and are in the know regarding the latest business trends and regulations. Having a high level of professionalism and accuracy ensures the sustainability of their business contracts.

Get the full advantage of cloud accounting with outsourcing services

In today’s unpredictable economic climate, cloud accounting keeps small businesses lean and agile for nimble business growth. By outsourcing your accounting and administrative support needs to a trusted service provider, you are gaining a reliable business advisor to provide practical, effective solutions for the long haul.

Connect with us today to find out how Mighty Glory Corporate Solutions can support your business operations as your trusted outsourced partner during these uncertain times.

Tips To Set Up Your Home-Based Business

Tips To Set Up Your Home-Based Business

by | 31 Jul 2021 | Business Tips

Introduction

As the COVID-19 pandemic shook the world, many experienced workers started to have growing concerns on their job stability. Businesses have been forced to go digital rapidly, and the concept of renting a commercial office has lost its charm — even the most traditional of leaders have warmed up to the idea of remote working. Many professionals began steering their careers in a wholly different direction, embracing entrepreneurship as technology greatly lowered the barriers in starting a home-based business. If you are looking to set up a home-based office for your business, here are the six top tips to get yourself business-ready:

1. Apply for Relevant Permits and Licenses

Under the Home-Based Small Scale Business Scheme, certain businesses such as freelance writing, baking, sewing, hairdressing, and private tuition (up to three students at one time) are allowed to be carried out and does not require HDB’s approval. Such businesses should only function as an add-on to your income. No person outside the household may be employed.

For ACRA-registered firms providing services such as design, consultancy, technology-based / knowledge-intensive businesses and more, you may register to set up a home office in your private home or HDB flat as part of the Home Office Scheme. You will need to apply for a license under this scheme and may employ up to two non-resident employees (those who do not live at the address). Other criteria apply — for instance, you must continue to use the residential unit as your place of residence, and all business activities should be confined wholly within the premises.

Before you proceed, check here for the list of permissible and non-permissible businesses under the Home Office Scheme. If your business falls under the non-permissible category (such as any form of the retail business), your flat can only be used for business administrative purpose. In addition, customers are not allowed to visit your home office.

For businesses under both schemes above, there are a few guidelines to be followed:
• No physical and paid advertisements should be done
• No external business signboard is to be displayed
• No extraneous traffic is introduced to the place
• No noise, smoke, smell and other disturbances or danger caused to neighboring residents
• No loading and unloading of goods using vans and trucks
• All activities must comply with the regulations of other authorities (e.g. Singapore Food Agency)

Other than a general business license and home office permit, you may also need to apply for certain industry-specific business licenses. For example, some types of businesses will require a professional or trade licenses (e.g. Estate Agent License for buying or selling real estate).

If this is your first home-based business, you may choose to work with a local corporate service provider to ensure that your company meets all company compliance requirements in Singapore.

2. Prepare Your Work Space

Now that you’ve committed to doing effective work from home, start by setting up some ground rules and keeping yourself disciplined. Get your office supplies ready (think: stationery, writing pads, file organisers, a comfy chair, wrist support if you’re constantly on a laptop etc.) so you wouldn’t have to scramble to gather such resources when the need arises.

Keep things organised, and have a clear distinction between work and personal space. If you want to maximise productivity, you need to make sure that you can fully focus without succumbing to temptations like your bed, or getting distracted by endless entertainment options.

If space allows, set up your workspace somewhere other than your bedroom. Otherwise, demarcate a specific area in your room for your work desk — once you’re there, commit to completing your business objectives each day before “clocking out” and taking a good break.

3. Have a Clear Working Schedule

Communicate with your family and/or housemates on your business hours and work arrangements to avoid getting your business operations disrupted. Develop a structured routine and plan the bulk of your work during your most productive hours. By establishing the right expectations with others who co-share a space with you, you’ll be able to minimise any interference which can break your flow in completing fruitful and creative work.

Inform your clients and customers of your operating hours on your website, social media and any other communications. Let them know what to expect when it comes to communications outside of your working hours — you may also consider setting up auto-responders past business hours with information on when you can get back to them (e,g. within two business days) and how they can reach you on urgent matters if necessary.

4. Write Down Your Business Plan

Having a concrete action plan in black and white helps to maintain clarity of thought when day-to-day responsibilities hit you like a whirlwind. Decide on the purpose of your business, the persona of your ideal customers, and how exactly your business will generate income for you. Some key details to include are:

• Executive Summary: Your company’s core business activities and organisational structure
• Company Overview: The vision, mission, core values and scope of your business
• Products and Services: What you offer and whom they are catered for
• Market Analysis and Strategy: Your target audience and how you can build a competitive edge over others
• Financial Overview: Budgets, forecasts, profit-and-loss analysis, and sales assumptions

This plan will serve as your guiding compass and roadmap for success, helping you to prioritise crucial business tasks and ensure that you are on track to achieve your business objectives within your projected timeframe.

5. Stay Connected Professionally

As more operate their businesses from home, some may tend to focus on internal business activities and lose touch on current business trends. To stay relevant and competitive, it is recommended to join business associations that organise virtual conferences and events to keep you updated on emerging challenges and the latest solutions and tools for your industry.

Maintaining a steady stream of income and clients may also be a concern for some home-based entrepreneurs, thus building a strong online presence (such as with a LinkedIn profile or Facebook page) will help to expand your network and introduce new prospects to your services without needing to step outside to solicit business.

6. Stay Connected Professionally

To ensure your business is sustainable in the long run, it is key to stay on top of your profits & losses, loan repayments, and other financial matters. Most income received or earned from trade, business, profession and/or vocation in Singapore are subjected to income tax.

Be sure to set up a separate bank account and credit card for your business and keep it separate from your personal expenses. Having a clear record of all business transactions and activities keeps your company compliant, should an audit be required for your home-based business. Use an IRAS-compliant accounting system to keep track of your business expenses and income, or employ a corporate services provider familiar with the business environment in Singapore to advise and/or manage your business accounts.

Conclusion

Mighty Glory Corporate Solutions is a virtual accounting practice that provides company incorporation, nominee directorship, corporate secretarial, bookkeeping, GST reporting, payroll management, business administration, financial reporting, corporate and individual tax services.

Check out our blog for more tips on running a business based in Singapore, or contact us here for comprehensive business support services.

As a gift to encourage / welcome new entrepreneurs, all new clients who connect with us and quote “HBB77” shall get a 15% discount on the first service package.