Opening a Corporate Bank Account
One of the first tasks to tackle after company incorporation is opening a business bank account. This is crucial for managing your business finances and keeping track of transactions. It is also required for various administrative processes such as applying for loans or credit cards.
To open a corporate bank account in Singapore, you must provide certain documents such as your company registration certificate and identification documents of directors and shareholders.
Hiring Employees
Singapore has strict rules when it comes to employment. You must be aware of the rules and regulations to comply with the local laws. The main labour law governing its employment regulations is the Singapore Employment Act which covers basic terms and conditions of employment. It applies to all employees (local and foreign) who are under a contract of service.
Some of the main employment regulations are:
Employment Pass (EP) and S-Pass Requirements
Singapore companies must apply for an Employment Pass (EP) or S-Pass for mid-skilled workers if they wish to hire foreign employees. Each pass has eligibility requirements regarding salary thresholds, qualifications, and job role.
There are also quota and levy requirements for certain foreign worker passes, like the S-Pass, to ensure a balanced workforce and limit dependence on foreign labor.
Central Provident Fund (CPF) Contributions
Employers must contribute to the CPF, Singapore’s mandatory social security savings plan, for all Singaporean and permanent resident (PR) employees. Contributions are made monthly and go toward the employee’s healthcare, housing, and retirement.
The CPF rate depends on the employee’s age and income, and contributions are shared between the employer and employee.
CPF Registration
Before employers can contribute to the CPF, they must first set up and assign register CPF services on the Corppass portal and obtain a CPF Submission Number (CSN). This number is made up of the Unique Entity Number (UEN) and CPF Payment Code.
After the CSN application is approved, they must choose a CPF submission mode from 3 options:
- CPF EZPay
- CPF EZPay Mobile
- Electronic Standing Instruction (ESI)
Employers must submit and pay CPF contributions by the 14th of the following month to avoid incurring a late payment interest of 1.5% per month.
What is the CPF Contribution Rate?
These are the CPF contribution rates for employees and employers in 2024 for employees with a monthly salary of at least S$750:
| Employee Age | Employer Contribution (% of wage) | Employee Contribution (% of wage) | Total (% of wage) |
| 55 and Below | 17 | 20 | 37 |
| Above 55 to 60 | 15 | 16 | 31 |
| Above 60 to 65 | 11.5 | 10.5 | 22 |
| Above 65 to 70 | 9 | 7.5 | 16.5 |
| Above 70 | 7.5 | 5 | 12.5 |
Calculating the SDL
Aside from the CPF, employers must also pay the SDL levy every month to SkillsFuture Singapore Agency (SSG). The SDL amount SSG collects is channelled to the Skills Development Fund (SDF) that is used to support workforce upgrading programmes and provide training grants to employers who send their workers for training under the National Continuing Education and Training (CET) System in Singapore.
How Much is the SDL in Singapore?
The levy payable for each employee is calculated at 0.25% of the monthly total wages. Employees earning less than S$800 incur a minimum payable amount of S$2 and employees earning more than S$4,500 a month incur a maximum payable amount of S$11.25.
After calculating the SDL for each employee, you must total the amount and round it down to the nearest dollar.
Goods and Services Tax (GST) Registration
GST is a type of value-added tax (VAT) that is imposed on goods imported into Singapore and on goods and services in the city-state. You must check whether GST applies to your business as not all companies must register for GST.
You only need to register for GST if your taxable turnover is:
- More than S$1 million at the end of the calendar year under the retrospective view
- Expected to be more than S$1 million in the next 12 months under the prospective view
The prevailing GST rate is 9%, and you must charge your consumers this extra amount on the goods and services you sell. The amount will be paid to the government during your GST returns filing.
Even if you need not register for GST, you can still consider doing so voluntarily.
Buying Business Insurance
Operating a company in Singapore comes with risks that you can mitigate by getting business insurance. Some common types of business insurance in Singapore include property insurance, employee work injury compensation insurance, medical insurance, and industry specific insurance.
There are compulsory forms of business insurance, such as commercial auto insurance, work injury compensation cover, and third-party liability insurance. Determine the insurance that your company needs, whether you are meeting your legal obligations, and get advice from a local corporate services provider like InCorp before making your purchase!
Get Help With Your Post-incorporation Business Requirements
Finding your way through the complexities of post-incorporation responsibilities in Singapore can be a daunting task, but with the right guidance, it does not have to be overwhelming. From understanding and purchasing the appropriate business insurance to ensuring compliance with local regulations, a corporate services provider like InCorp can offer invaluable assistance.
Let experts handle these intricacies so you can focus on what you do best: growing your business and achieving success in Singapore’s dynamic market environment. Contact us to find out more today!
FAQs About What to do After Registering a Company in Singapore
- It typically takes 1 to 3 working days to register a business in Singapore. However, it may take longer if there are additional documents to process or regulatory requirements to pass.
- It can take between 1 and 4 weeks to open a corporate bank account in Singapore.
- We are well-equipped to help with the various post-incorporation administrative requirements across areas such as hiring a corporate secretary, corporate tax, trademark registration and more.
Speak to company advisory experts in Singapore
About the Author
Alton Neo
Alton has deep technical expertise in the Singapore Financial Reporting Standards as well as hands-on experience in accounting for publicly-listed entities and growing enterprises in Singapore. Beyond that, Alton also provides expertise to fund managers and family offices on structuring.
