Is it necessary to register a company when doing online business?

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Meo
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Is it necessary to register a company when doing online business?

Post by Meo » Wed, 21 Jul 2021 7:56 pm

Hello everyone,
i have been doing online business for more than 3 years, but I am still hesitant to register a company or not? because I still pay taxes under the NRIC. Anyone know please give me some advice, as I don't know very well about the company reporting procedures in singapore too.
Thank you so much!!!
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Myasis Dragon
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Re: Is it necessary to register a company when doing online business?

Post by Myasis Dragon » Wed, 21 Jul 2021 11:03 pm

Meo wrote:
Wed, 21 Jul 2021 7:56 pm
Hello everyone,
i have been doing online business for more than 3 years, but I am still hesitant to register a company or not? because I still pay taxes under the NRIC. Anyone know please give me some advice, as I don't know very well about the company reporting procedures in singapore too.
Thank you so much!!!
Newbie
Here is the way the law works. Anyone who runs a business of any kind in Singapore must register that business.

BUT, you are not required to register your business if you conduct business in your own name only. In that case, you are considered to be an unregistered sole proprietorship. This sounds like what you are doing right now.

Example 1: My name is Jim Smith. I am a handyman. I fix things for people and they give me cash or they write me a cheque made out "Jim Smith". I put this check in my personal bank accountant, which is titled, "Jim Smith". I file my personal tax return, showing how much income I have made.

This is an example of an unregistered sole proprietorship. The key feature is that everything is exactly your name, only.

Example 2: My name is Jim Smith. I am a handyman. I call my business "Jim Smith Handyman Services". I fix stuff for people. They write a check out to "Jim Smith Handyman Services" and I deposit it into my business bank account, which is also titled "Jim Smith Handyman Services".

Now, I must register my sole proprietorship with ACRA. Why? Because my business name is more than my own personal name, it has "Handyman Services" added onto it.

Once you have registered your business, you can then open bank accounts in its name, get credit in its name, etc.

Because it is a sole proprietorship, you will still report your income on your personal tax return, just as you do right now.

So, based on the information that you have given, so long as you are using only your actual name in your business, you don't need to register. But if you add anything else to your name, "Meo Online", or "Meo Trading" or anything like that, then you must register. But since it's a sole proprietorship, your tax returns will be the same.

Meo
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Re: Is it necessary to register a company when doing online business?

Post by Meo » Thu, 22 Jul 2021 4:20 pm

Hi Jim, Thank you for your information is very helpful. It seems that if I register the company, it will be more profitable for me in the future but I don't know what additional procedures do I need to do?
eg: quarterly, annual reports or other information needed.
If you know please share with me. Appreciate your help!

Have a good day Jim!
Meo

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Re: Is it necessary to register a company when doing online business?

Post by sundaymorningstaple » Thu, 22 Jul 2021 7:12 pm

Maybe Myasis should have used "John Doe" as Meo let 'Jim Smith' go over her head like a lead balloon. :lol: :lol: :lol:
Life isn't about avoiding the bruises. It's about collecting the scars to prove we showed up for it!

Myasis Dragon
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Re: Is it necessary to register a company when doing online business?

Post by Myasis Dragon » Thu, 22 Jul 2021 10:21 pm

sundaymorningstaple wrote:
Thu, 22 Jul 2021 7:12 pm
Maybe Myasis should have used "John Doe" as Meo let 'Jim Smith' go over her head like a lead balloon. :lol: :lol: :lol:
I thought about "Sum Ting Wong" but decided against it.

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Re: Is it necessary to register a company when doing online business?

Post by Myasis Dragon » Thu, 22 Jul 2021 10:36 pm

Meo wrote:
Thu, 22 Jul 2021 4:20 pm
Hi Jim, Thank you for your information is very helpful. It seems that if I register the company, it will be more profitable for me in the future but I don't know what additional procedures do I need to do?
eg: quarterly, annual reports or other information needed.
If you know please share with me. Appreciate your help!

Have a good day Jim!
Meo
First, yes, I think it is a good idea to register your business name as a sole proprietorship. It keeps anyone else from using your name, lets other people know that your business exists (because it is registered), and offers other benefits as well.

You should go to this website to learn more about registering your business.

https://www.acra.gov.sg/how-to-guides/b ... t-register

The essential answer to your question is that you don't need to do anything different when you register your company. You will still file your tax returns as you do now, the only difference is that in addition to your NRIC, there will be a business number that you will report.

In general, though, you should read through the ACRA website because if you operate a business in Singapore, registered or not, you have certain obligations, for example, keeping your Medisave account topped up. As a business person you should learn a bit more about accounting so that you can keep accurate financial records as your business grows.

I would recommend that you start here: https://www.acra.gov.sg/how-to-guides/s ... ietorships

If you have more questions, please ask them here.

Cheers.

Meo
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Re: Is it necessary to register a company when doing online business?

Post by Meo » Fri, 23 Jul 2021 2:43 pm

sundaymorningstaple wrote:
Thu, 22 Jul 2021 7:12 pm
Maybe Myasis should have used "John Doe" as Meo let 'Jim Smith' go over her head like a lead balloon. :lol: :lol: :lol:
haha i may in lockdown too long then. brain dizzy :???:

Meo
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Re: Is it necessary to register a company when doing online business?

Post by Meo » Fri, 23 Jul 2021 2:53 pm

Good day to everyone!!!
Hope you guys all doing well today.
Thanks Myasic for very particularly details on this matter, and Moderator Sunday wakes my brain up :D
Thank you all very much for your comments. I think I haven't really asked what I need to know. actually i have had company in my country for 8 years now, and i also have company with a few shareholder here in singapore, so i know there is a lot of paperwork, or reporting.. audit, annual finance... because this online segment I work alone and it's just a part-time business, so I hesitated about this. Since I'm only a foreigner in singapore, I don't have much need for credit or other benefits, but I know that if I register a company, everything seems to be more favorable because the tax is still the same. But I'm really concerned about the time for administrative procedures, audits, or hiring more people to do so... .( Like is it really worth the time? when my profit may be reduced and income is probably still the same? )

I hope you guys understands what I'm concerned about.
Meo.

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