day trading sole proprietorship

[terra_fmsg]

Hi Group Members,

First of all apologies if I am asking question that has been answered before, I tried searching in archives and found similar questions but not exactly same as my case so posting it here.

I am SPR (since 2011) living in SG with my husband and kids, I never worked in Singapore before.

I am qualified trader (worked in IBanks before in HK). I am thinking of starting a day trading sole proprietorship company, now my questions are

1) My trading activity will not be day trading exactly but still I will do frequent trades, something like few hundred trades a month to begin with, I heard that for capital gains there is no tax in Singapore but I don't think my trading pattern will be treated as investment/ capital gains so I plan to register a business and do it in legal way i.e pay taxes etc.., Is my understanding correct ?

2) We currently rent an apartment, can I give this address as my business address when a I register a company ? Do I need to get permission from owner of our apartment ?

3) I googled for bookkeeping/ accounting companies and contacted couple of them, they all seem to be willing to do it for my potential business, but the moment I explain my business as exchange listed futures trading, they make very strange faces as if I am trying to do a scam. I am sure that there are lot of traders doing trading for living in Singapore and hence I should not get strange looks from accounting guys, Does anyone in group has any recommendation for reliable accounting guys for this purpose.

4) Since I never worked in Singapore, I don't have CPF/Medisave, Is it required to register sole proprietorship company here ?

Thanks for your patience to read and hoping to get help from this forum.

TF

[taxico]

1: yes.

2: yes and AFAIK, you don't need permission from the owner.

home office details (non-HDB):

http://edanet.ura.gov.sg/dcd/homeoffice ... /HOfaq.jsp

other details:

http://edanet.ura.gov.sg/dcd/homeoffice ... gister.jsp

4:

if you're a sole-proprietor, medisave contribution is compulsory (if you hit the min $6k annual income requirement) - pegged to your income with a limit of 4-5k in annual contributions. CPF is not necessary.

[Strong Eagle]

Just to add to what taxico said: If you form a pte ltd, then you would pay yourself a salary and then would be subject to CPF. This could be a good thing, as you will eventually get it all back, although the rate of return is not huge.

[teck21]

I believe your company income will be assessed as trading income, and taxed according to corporate tax rates here.

[Strong Eagle]

I believe your company income will be assessed as trading income, and taxed according to corporate tax rates here.

True, but for the first three years there is an exclusion of the first $100,000 of profit.

[terra_fmsg]

Thanks guys, I will explore pte ltd, looks like this is better option, any recommendation for professional who can help me set this up and handle various things involved.

[Strong Eagle]

Thanks guys, I will explore pte ltd, looks like this is better option, any recommendation for professional who can help me set this up and handle various things involved.

Email me for my corporate accountant. Set it up and handles all my secretarial and filing chores.

[Zeke]

can i ask something, doesn't terra_fmsg require a Capital Markets Services License in order to trade futures and securities ?

[terra_fmsg]

I am not sure, but since I am trading on my own money (no client / no investor) why do I need a license. I trade using my online brokerage account even now, although my trading volume is quite small at the moment.

SE would you know about license requirement?

Thanks

[taxico]

can i ask something, doesn't terra_fmsg require a Capital Markets Services License in order to trade futures and securities ?

no. she's not a rep nor a company trading for others/earning a commission.

[Zeke]

thanks for the clarification taxico!

so even with one investor you will have to get a license?

in many countries you require license above a certain number of investors or above a certain amount of Asset under management.

What is the regulation in Singapore?

[JR8]

Why do it via a 'corporate vehicle'? Why not do it in a personal capacity?

[taxico]

...so even with one investor you will have to get a license?

in many countries you require license above a certain number of investors or above a certain amount of Asset under management.

What is the regulation in Singapore?

http://www.ifaq.gov.sg/mas/apps/fcd_faqmain.aspx

some rules have been revised stricter last year.

[njr]

Hi terra_fmsg,

I've been doing a bit of research and came across your posting in this forum. I am thinking about relocating to Singapore to do exactly the same as what you are doing. I am a trader and generally trade more than 100 trades per month and an annual profit of over 100k USD. I was wondering what the outcome of your research was in terms of setting up company structures, working permits, etc. Any advice, tips, contact you have would be greatly appreciated...

Thanks......

[Wd40]

I thought day traders always lose money. I would be interested to know if anyone consistently makes money by trading gains alone.