Strong Eagle,Strong Eagle wrote:Unless there is a regulatory requirement for a minimum paid up capital in the line of business you are choosing, why put in 100K via stock? Loan the company the money as required.
Technically, you can apply for an EP for your wife. Realistically, you may want to ensure that your company has revenues sufficient to support both you and your wife, else it may be viewed that you are just burning through your startup cash to get your wife an EP.
Your wife can be a shareholder. She cannot be a director or other employee without an EP.
As a director you will want to pay yourself a salary, which is subject to income tax and CPF, and directors fees as appropriate, for example, a bonus. Directors fees are subject to tax but not CPF.
If I were to start a business, I'd ensure that I had my REP renewed before doing it. If you have only one year left on your REP, and your business is still not profitable enough to support you, and given the current climate regarding PR's, you just might find your REP not renewed. It's hard to say... maybe others can chime in.
As a small business owner I would advise you to have your business plan critically reviewed. Your assumptions about profits you can make from trading, risks, etc are exceptionally important, especially when one considers that the majority of businesses fail in the first five years.
Mate, you HAVE to have a physical address, the registered address. It can usually be your residence if you don't have an office. How the hell does an HDB address add to professional image? I kept an address on Battery Road, 31st floor for "image"... cost a hell of a lot of money... and clients liked the harbor view.SGHope84 wrote:Another question is:
-Should my trading company have a physical address to add a bit of professional image for it? The fact is that the business can be conducted entirely and sufficiently online. So, I can work feom home and anywhere I want to. Would virtual office with the local address work just fine? How about using my HDB address (does this make company image look sloppy?
Thanks
-I dont have any clients to entertain actually. So still have to waste money on the business adress that I dont actually use?Strong Eagle wrote:Mate, you HAVE to have a physical address, the registered address. It can usually be your residence if you don't have an office. How the hell does an HDB address add to professional image? I kept an address on Battery Road, 31st floor for "image"... cost a hell of a lot of money... and clients liked the harbor view.SGHope84 wrote:Another question is:
-Should my trading company have a physical address to add a bit of professional image for it? The fact is that the business can be conducted entirely and sufficiently online. So, I can work feom home and anywhere I want to. Would virtual office with the local address work just fine? How about using my HDB address (does this make company image look sloppy?
Thanks
Hello JR8,JR8 wrote:Hi SGHope and welcome to the forum!
I come is at a slightly different angle, and who knows maybe my thoughts/questions might add some value for you (that is the intention ).
I had a professional career and segued to self-employed. I.e. I didn’t quit one to begin another, as that seemed too risky. I did the two initially in parallel for 2-3 years as much as it ‘half killed me’ given the required hours of working for two masters, pretty much until one proved itself and won the day (self-employment, as it turned out). So in your shoes I’d want to know a) your wife, has she the security of work, and base-level income to support the household whilst you hopefully get up to speed? b) do you really have to ‘leap the Rubicon’ and quit your work to prove (or disprove) that this 2nd career will work?
What is your income requirement? What yield/assets would that imply and require? 50k of working capital is (IMHO) not a huge amount; at say 5% income => $2.5k a year. IME/O 5% is the stable and passive div/coupon from an investment portfolio. So what do you have that beats that; hopefully materially beats that?
Next up: Your wife as risk manager. How is she qualified and experienced to be a risk manager? The way I look at it a risk manager has usually worked as a trader, i.e. they completely ‘get’ the inside track, the human impulses, mechanical, logical, addictive and otherwise. Added to which they’re usually some PhD mathematician. If the trader is the buzz-addicted renegade, his risk manager is the ex-addict who polices absolute black-and-white limits (etc etc). Often the RM has remit to trade versus their own traders gross position to reduce overall ‘house risk’, same as the head-trader does. Consider what you think of ‘risk manager’ and what it entails and achieves. Have you considered your wife trading contra to you? ... to intentionally restrict your risk?
I think you have to convince yourself you as a couple are born to be a natural ‘prop’ trading operation. IME that is the hardest and most *brutal* end of trading, and best of luck and respect if you have what it takes. // I expect the SGn authorities might approach things from a similar angle... i.e. you’re going to have to wave like a huge flag why what you’re proposing WILL work.
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