A holding company is a legal entity that owns and controls other companies, with the primary operational activities carried out by its subsidiary companies. It is established to mitigate risks for the owners, as their liabilities are limited to the shares or assets associated with the subsidiary held by the holding company. The use of [...]
Base erosion and profit shifting (BEPS) is a term used to describe tax planning strategies employed by multinational enterprises (MNEs) that take advantage of gaps and inconsistencies in tax regulations to avoid paying taxes. Developing countries, which heavily rely on corporate income tax, are disproportionately affected by BEPS. These practices result in annual revenue losses [...]
In general, there are two accounting methods commonly used in business. Cash basis accounting: The first method is cash-based accounting, which is a relatively straightforward approach where transactions are recorded at the time when cash is received or paid. In this method, income is recognized when cash is received, and expenses are recognized when [...]
An Employee Stock Option Plan (ESOP) is an excellent way of letting employees have a share in the company. This will help to give employees a sense of ownership to the company which they are working for. This is also a way to attract and retain talent. These are the main reasons for a company [...]
In accordance with Singapore legislation, every incorporated company must have at least one shareholder. A shareholder is an individual or legal entity that holds an ownership stake in the company. It is not mandatory for a shareholder to be a natural person; it can also be a legal entity. The fundamental requirement is that the [...]
Valuing a business accurately is important for various reasons, such as buying or selling a business, seeking investment, or determining its financial health. While the process of business valuation can be complex, here are some key steps to help you perform a proper business valuation in Singapore: Define the Purpose and Scope: Determine the purpose [...]
In today's digital age, having a website for your business is essential. The internet has made the world more connected, and people now rely on it for information and various activities such as shopping, news reading, and entertainment. With the increasing amount of time spent online, businesses have recognized the need to establish an online [...]
CorpPass is a corporate user authentication service designed to facilitate online transactions with government agencies on behalf of organizations. Starting from September 2018, all entities must utilize CorpPass for government transactions. It caters to both local entities with a Unique Entity Number (UEN) and foreign entities. Local entities without a UEN can continue using SingPass [...]
Directors and shareholders serve as crucial participants within the structure of a company, exerting influence and shaping its decisions. They each have distinct responsibilities and fulfil separate functions. However, is it feasible for an individual to assume both the roles of a director and a shareholder? That's an excellent question! Let's delve deeper into this [...]
Considerations for the necessity of a shareholder agreement: While not mandatory, a shareholder agreement can greatly facilitate the smooth operation of a company or business. There are several reasons why a shareholder agreement may be required: a) To supplement the company's constitution. b) To incorporate specific provisions among shareholders. c) To address shareholder concerns. d) [...]