Contracting in singapore - What to do to set up?

[Deefa]

Hi All,

I am doing some investigation into contracting in Singapore and was hoping that someone may be able to give me a Contracting in SG 101 course.

Some background first.
I have the PR (spouse)
I am British
I have worked in Singapore before many years ago
I have potentially been offered a position from a previous employer, but it will have to be contract (initially) due to budgets and various funds.
The role will be Senior Infrastructure PM managing multiple IT based projects across the region, (India, China, Japan, Indonesia etc) for an MNC

I have never thought about contract work in Singapore before so am now trying to find out how to go about this, what the costs are to set up, the requirements, the risks and the tax / CPF implications.

i have been offered a rate of $sg600 a day (works out to just under $sg145,000 PA) which in the permanent arena is “acceptable”

[jpatokal]

I have never thought about contract work in Singapore before so am now trying to find out how to go about this, what the costs are to set up, the requirements, the risks and the tax / CPF implications.

Step one: Find a good accountant, they'll be able to explain how things work.

The long and short of it, though, is that Singapore's a very easy place to set up your own company. If you're the sole employee and pay yourself through dividends instead of a salary, then there's no CPF to worry about either.

[Deefa]

many thanks for that. From the lack of doom and gloom in your responce, it sounds like it not as painfull an experiance as the UK

Anyone want to stick thier neck out and reomend an accountant for the job, or an idea of what i should expect them to pay?

Guess time to get the wife to look up a few old schoolfriends an see if any of them became accountants!!

[ksl]

I have potentially been offered a position from a previous employer, but it will have to be contract (initially) due to budgets and various funds.
The role will be Senior Infrastructure PM managing multiple IT based projects across the region, (India, China, Japan, Indonesia etc) for an MNC

I have never thought about contract work in Singapore before so am now trying to find out how to go about this, what the costs are to set up, the requirements, the risks and the tax / CPF implications.

i have been offered a rate of $sg600 a day (works out to just under $sg145,000 PA) which in the permanent arena is “

I think you need a little more information of what is expected of you, in regards, to travelling, for 600$ a day doesn't sound too much at all, to cover several countries, unless, you agree on limits of travel, you know the field better than most, So it shouldn't take you long to do some costing. + & - a fail safe levy. For contract work you are going to be made accountable.

It is more than likely, that the 600$ a day is a local Singaporean contract rate, which may be acceptable, for them and not for you, I guess you need, some clauses in your contract, to benefit yourself.

If you know the MNC it shouldn't be too difficult to search out the tenders, that have been won, although your main concern is it feasible on 600$, taking into account that you alone, maybe accountable for deadlines, which if not met, may result in financial penalties, only you can work that out, from your costing. especially on the travelling side.

The role will be Senior Infrastructure PM managing multiple IT based projects across the region, (India, China, Japan, Indonesia etc) for an MNC

[Deefa]

KSL, you make valid points.

The company is not an IT company, this is working for the end client, just covering many locations. This mitigates some of the "financial penalties" you refer to, although i would retain my indemnity insurance (or transfer it to an appropriate policy for APAC)

The company will pay for all travel and general business costs (phone, computer, Internet access etc) on top of the rate.

The $600 is a pro rata 1 business day, not an all inclusive rate.

You are right in that i need to negotiate some sort of door to door rate for any business travel undertaken though.

Thanks for the observations though, its always good to have an objective view look at things without the rose tinted glasses and raise some realistic points. Much appreciated.

[jpatokal]

The company will pay for all travel and general business costs (phone, computer, Internet access etc) on top of the rate.

The $600 is a pro rata 1 business day, not an all inclusive rate.

You are right in that i need to negotiate some sort of door to door rate for any business travel undertaken though.

Definitely. The easiest option is just to bill for any travel time outside office hours, using an overtime rate. Sitting in an airplane is much more fun when you can kick back and watch the money roll in

[keinicke]

Being a contractor myself the rate sounds ok to me, but maybe depending on expected working hours per day especially considering 'overtime' travels etc.
All valid business expenses including travelling should be reimbursed of course.

As to to excact invoicing setup I'm not so familiar with this having used UK umbrella company up till now, but am considering setting up own private limited company in singapore for new contract there?
How would paying dividends compare to paying otherwise for tax & other purposes???

Should entrepass EP & company setup be expected as mere formality for this kind of biz.?

[Strong Eagle]

[quote="Deefa"]Hi All,

I am doing some investigation into contracting in Singapore and was hoping that someone may be able to give me a Contracting in SG 101 course.

Some background first.
I have the PR (spouse)
I am British
I have worked in Singapore before many years ago
I have potentially been offered a position from a previous employer, but it will have to be contract (initially) due to budgets and various funds.
The role will be Senior Infrastructure PM managing multiple IT based projects across the region, (India, China, Japan, Indonesia etc) for an MNC

I have never thought about contract work in Singapore before so am now trying to find out how to go about this, what the costs are to set up, the requirements, the risks and the tax / CPF implications.

i have been offered a rate of $sg600 a day (works out to just under $sg145,000 PA) which in the permanent arena is “acceptable”

[Deefa]

strong eagle, YGM

[jpatokal]

How would paying dividends compare to paying otherwise for tax & other purposes???

Singapore's capital gains tax is 0%, so you do the math

Should entrepass EP & company setup be expected as mere formality for this kind of biz.?

The original poster is PR, so creating the company is just a formality, but getting an Entrepass is a whole new kettle of fish head curry. See Strong Eagle's Enterpass sticky for the full scoop.

[keinicke]

I see it all starts to make sense now
Would be nice with more experiences on the entrepass as if needing to be in country to try & set-up & then if failing to do having to return to home country is a hell of a detour not too mention expenses & lost opportunities

[Deefa]

Cheers for the pointers here, and for advisories on the rates. Have since negotiated a wedge more which is nice

Would anyone here be willing to recomend an accountant that could advise on best path forward for me and for setting up company etc if that were deemed best?

[keinicke]

Deefa, If you find a good accountant or company to help setup I'd be interested to know as I'm in very similar needs & situation also europe based right now.
YGM

[Deefa]

Back at ya