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few questions about incorporating Pte Ltd

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starnrose
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few questions about incorporating Pte Ltd

Postby starnrose » Tue, 15 May 2012 3:56 pm

Hi all,

I'm a Singapore PR, and thinking about incorporating a one-man-show Pte Ltd.

Actually I have a few plans on how to get my first customer. But few days ago I've got a job offer from a company in Singapore.

What am thinking is, to convert this job offer ( employer - employee contract ) to business-to-business contract ( Pte Ltd to Pte Ltd ).
If employer doesn't want it, my plan is to become their employee, while I'm incorporating a Pte Ltd, savings more dollars, while planning again to get customer.

My questions :

1. is my plan above violating any business ethics or any law, or not common in Singapore ?
2. If I become employee, and I incorporating Pte Ltd, is it a problem if part of my salary I put into my company's account, and then this money will be stated as director's salary ( It will be myself as the director ), or later I'll state it as dividend, so this new Pte Ltd contributes to income tax / corporate's tax ?

Thanks in advance.

bensonlew
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Joined: Sat, 19 May 2012
Location: Singapore

Re: few questions about incorporating Pte Ltd

Postby bensonlew » Sat, 19 May 2012 12:45 am

starnrose wrote:Hi all,

I'm a Singapore PR, and thinking about incorporating a one-man-show Pte Ltd.

Actually I have a few plans on how to get my first customer. But few days ago I've got a job offer from a company in Singapore.

What am thinking is, to convert this job offer ( employer - employee contract ) to business-to-business contract ( Pte Ltd to Pte Ltd ).
If employer doesn't want it, my plan is to become their employee, while I'm incorporating a Pte Ltd, savings more dollars, while planning again to get customer.

My questions :

1. is my plan above violating any business ethics or any law, or not common in Singapore ?
2. If I become employee, and I incorporating Pte Ltd, is it a problem if part of my salary I put into my company's account, and then this money will be stated as director's salary ( It will be myself as the director ), or later I'll state it as dividend, so this new Pte Ltd contributes to income tax / corporate's tax ?

Thanks in advance.


Dear starnrose,

There is no such of thing ethic or not ethic. It's not violating any laws as long there is clear understanding. So if you really can convert it to pte to pte, that will be good. However if the company doesn't want, actually your chance to get this job also slim as they might not consider to hire you since you have company.

Answering to your second question, it's again depend on your employer. There is no law saying you cannot work under different company while having company. But almost none of employers will allow you to have own business while working under their company. And yes your company will have to contribute into corporate tax. But I think first 2 Years is free.

And also you will need to know that having pte ltd you will need t submit your unaudited accounting every year. So make sure you follow the regulation. Your company secretary should be able to advise you better on regulatory.


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