Company Incorporation Singapore & Taking Risks

Everyone has to eat thrice a day, but that does not mean that they will jump into a wagon and crash at your new restaurant for it. Well, it is entrepreneurship for you. And many will tell you it is risky to commit your resources to a company incorporation Singapore.

Being an Entrepreneur & Taking Risks

However, if you do not take any risk, you would never know how much you could have achieved with your business idea. Not many people get into the entrepreneurship as they are scared that they may lose their investment in their limited private company Singapore.

If you talk to the successful entrepreneurs or any successful individual, you will find that they succeed because they took risks. They left the zone of comfort, choose to set up a private limited company in Singapore and take on the hardships of a business owner’s life.

Get Out of Your Comfort Zone

The most people do not want to leave their ‘comfort zone.’ Are you one of them? Ask yourself, if you can incorporate a company in Singapore and do everything in your power to run it successfully.
Take your time as it is a question you will need to think out properly before paying Singapore company incorporation fees.

You may not want to take any risk, but be sure that someone else will and be the cause of monumental changes in your business niche. Even a well-established business has to take risks to expand its horizon by investing in product development.

Want Comfort of a 9–5 Job?

You, as an entrepreneur interested in a company incorporation Singapore, have to take the risk. You should walk into it with open eyes with the full understanding that you may lose all your investment; money, time, reputation, goodwill, etc. If you are not prepared for it, you should think of doing something else. If you find the security of monthly paychecks promising, you should stick to a 9–5 job and not bother any of the Singapore company registration services.

Be a Leader and Be Flexible

As an entrepreneur, you will have to lead from the front. Be a leader to your employee, and multitask, rather than be discouraged, when they leave prematurely. You will have to take decisions that may affect your loyal customers or investors profoundly.
You will also have to be flexible to change your strategies if the existing ones are not productive. You have to accept this and much more so as to embrace the uncertainty of the entrepreneurship knowingly.

Also read: How to Turn Your Idea Into a Successful Company Incorporation Singapore

Avoid Risks with Data Driven Decisions

An entrepreneur has to face risks and find solutions to beat them by using historical data for decision-making. You will have to learn to predict the probability of a favorable outcome of your business decision. And, then go ahead if you are comfortable with it.

You may also have to deal with the risks that are more difficult to calculate. These types of risks have ambiguity built into them. And there is not enough data to quantify them and form a strategy against them. The majority of business risks are of this type. You will need to market research & surveys to know about the consumer behavior, needs, demographic, and economic and market trends.

Cultural Bias and Taking Risks

The people react in different ways when an individual shows interest in being an entrepreneur. These responses depend on the cultural bias and family’s business background or lack of it. The families having business background responds positively to the risk-taking.

Still, the entrepreneurs having positive support to buoy them needs to be careful. They must calculate the risks to the last centimeter and accept the failure of best-laid plans.

Also read: 5 Things Every Entrepreneur Should Know Before Company Registration Singapore

Be Prepared to Face Failure

However, you should not let the specter of failure to bog down your mind. And, keep a tight lid on your imagination and avoid exaggerating the risks especially when you have insufficient data in hand. Do not think that every failure is going to sink your new Singapore business incorporation and leave you in debts.

An entrepreneur is someone different than the common folk, as, most other individuals shy away from risks. It makes you stand out in the crowd as a man who is ready to try new business ideas. Yes, of course, your company incorporation Singapore may fail to succeed, but it is better than denying the existing of the ideas and the entrepreneurial spirit in you.

Contact us:
SBS Consulting Pte Ltd
High Street Center,
#17–02, 1 North Bridge Road,
179094 — Singapore
Phone: +65–6536 0036
Email: info@sbsgroup.com.sg

Singapore Budget 2018 Key Highlights and Announcement

Singapore Finance Minister Heng Swee Keat came out with the ‘Some goodies for everyone’ Budget 2018. He presented Parliament with the revenue and expenditure for the Singaporean financial year 2018.

Mr. Heng said, “It is a wide-ranging Budget to competently address Singapore’s long-term challenges. It is more of a multi-year agenda for the country.” He announced tax increases and the taxing of property, consumption, and online services to generate more revenue.

Mr. Heng said, “We are in a very tight fiscal situation, not this year, not next year, but over the longer run.”

He cited that it is time act prudently as the Singaporean economy is maturing and its population aging. He, as good as reminded Singaporeans that they are mortals and plan for the substantial healthcare expenses in future.

Since the start of this decade, Singaporeans are spending more and more on their healthcare. The expenses have almost doubled to S$10.2 billion in 2018. Over the next decade, it is expected to rise 3 percent of GDP. The healthcare of its aging population is a key priority for Singapore.

The budget has raised excise duty on Tobacco by 10% in an effort to curb the consumption of tobacco products. It will be effective immediately from Feb 19.

The Budget 2018 is an intimation to the all concerned that the Singaporeans will need to find more revenue for proposed spending on healthcare, infrastructure, transport, special transfers, & defense.

Defense sector will get the biggest share of the expenditures in 2018. The budget has provided 14.8 billion for it. The next bigger portion is allocated to transport sector. The allocation is 13.7 billion. 

The budget also allocates 12.8 billion, 10.2 billion, 9.1 billion to education, health, & special transfers, respectively, for the 2018 fiscal year. The expenses on the infrastructure are expected to rise to S$20 billion in 2018.

The budget raised Goods and Services tax by 2%, pushing it from 7% to 9%. However, it is not going to apply immediately as it is scheduled for some time from 2021 to 2025.

The increase in taxes put out the buzz created because of a comment by the Prime Minister Lee Hsien Loong, “Raising taxes was not a matter of whether, but a matter of When.” 

However, the delayed taxes will give enough room for the Singaporeans to digest them and come up with plans to cope with them.

There are initial casualties of the budget 2018. It has disturbed some Singaporean’s carefully laid plans. It announced an increase in the Buyer’s Stamp Duty rates for residential properties. It was the least expected development. The top marginal Buyer’s Stamp Duty (BSD) has gone up from 3% to 4% with immediate effect, starting on Feb 20, 2018. The portion of the value of residential property in excess of $1 million will be taxed.

Mr. Heng said, “The timing of the raised GST will depend on the state of the economy, how much expenditures grow, and how buoyant existing taxes are. He also cautioned that the Government would “need to do so earlier rather than later.”

Finance Minister Heng Swee Keat said, “The decision to raise the goods and services tax (GST) was a difficult one, but it is the most appropriate option to help Singapore raise revenues at this stage.”

Singapore has substantial reserves that it draws on to help finance the budget. The interest earned on its reserves is the biggest contributor to the government’s revenues. It is projected to be as much as S$16 billion by the start of April 2018.

However, Mr. Heng and other government officials abhor such practice and do not look upon it as a long-term solution. Their point is that such funds are for emergencies rather than daily spending.

Mr. Heng said, “Now that our economy is maturing, and our population is aging, we must husband this resource carefully, prudently and responsibly.”

He said that the Government thoroughly explored all possible tax and non-tax alternatives to increase in GST rate. However, each option carried pluses and minuses. They had to settle for an increase in GST rate to generate more revenue.

The increase in corporate tax, when other countries are reducing it, could have sent a negative message to the business owners. It could have unpredictable consequences. It could discourage businesses into shifting out of Singapore.

He also pointed that an increase of 2% in the GST will only increase the revenue by 0.7 percent of gross domestic product each year which is not at all sufficient to cover the rising spending needs.

The budget announced that digital imported services would be taxed with GST from Jan 1, 2020. The announcement covers services such as Netflix and Spotify, apps, listing fees on electronic marketplaces, software, and online subscription fees from overseas suppliers even when they are not physically present in Singapore. The GST will also cover imported services like marketing, accounting, IT and management services. However, the move excludes e-commerce for goods.

There is a surplus of $9.6 billion from the year ending next month, i.e., Budget 2017. Mr. Heng has announced one-time payout. Singaporeans over 21 years will get to share in budget surplus. 

Depending on their income, the 2.7 million Singaporeans will receive S$100, S$200 or S$300 in end-2018. The move is going to cost the government S$700 million. The amount is big enough to kick the consumption a little bit.

The budget also announced that the permanent GST voucher scheme would be topped up by $2 billion as opposed to last year’s $800 million. It has more than doubled the allocation. It will help households with lower-income to cope up with the changes in GST. The budget promises to absorb GST on publicly subsidized education & healthcare as before.

Singapore has had a good 2017. It is expected that the economy will do quite well in the fiscal year 2018 what with good growth and job-market prospects.

SBS Consulting Pte Ltd said, “Singapore will get more in revenue from corporate and personal income taxes. With corporate tax amounting to S$15 billion. The GST & motor vehicle levies will also contribute to it.”

The budget 2018 has announced an increase in the foreign domestic worker levy to be implemented from April 1, 2019. It is for those employed without levy concession. It will increase from $265 to $300 for the first foreign domestic worker and from $265 to $450 for the second worker.

For employers who do not qualify for concessions, the levy will be raised to $300 per month for the first worker and to $450 for the second helper. The households with children below 16, seniors, or disabled persons will continue to get the concession of $60.

The budgetary measures also include incentivizing innovation, new Productivity Solutions Grant, initiatives to meet climate change commitments, enhancements to the Proximity Housing Grant, the tax deduction for commercial use of intellectual property, an extension of Wage Credit Scheme.

Originally Posted: https://goo.gl/ziWkD4