It is essential for companies planning to run Payroll Services in Singapore to have a clear plan and make the right moves from day one. This is vital for all international companies wishing to establish a presence in Singapore and plan to hire staff and operate payroll there. Singapore is a financial and commercial powerhouse at the heart of Asian economies and a prime target for International Expansion.
Singapore’s pedigree is impressive. It is the only Asian nation with a Triple AAA credit rating, a hub for east and west shipping lanes (with the world’s second-largest port), while 50% of the world’s population is a six-hour flight away. Foreign companies must establish a subsidiary in Singapore to officially and legally hire staff and operate their payroll, but it is essential to take on board expert guidance. Registering employees with the Central Provident Fund (CPF) and the Inland Revenue Authority of Singapore (IRAS) are the first of many steps in employing staff.
Complying with tax filing, payroll regulations, social insurance and employee rights in Singapore’s employment market adds to a testing workload. Failure to get it right risks fines and other sanctions. Bradford Jacobs’ specialists become your employees’ effective Employer of Record (EOR) for all these issues while they remain under your daily operational control.
Remote payroll – This option allows businesses to operate under a single payroll system by adding employees in Singapore to the parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Singapore. However, this does require hiring dedicated HR staff who understand Singapore’s employment and compliance laws.
Singaporean payroll processing company – If you are considering outsourcing, then working with a Singaporean payroll company will help in processing your payroll – but not when it comes to compliance.
Singaporean payroll outsourcing – However, another option is available to solve both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Singapore. We lift the administrative stress from your shoulders so you can focus on what you do best.
Companies moving into Singapore’s financial and commercial hub as a base for further expansion open up many opportunities throughout southeast Asia and Pacific Rim nations. Challenges come alongside the potential benefits, however. You cannot afford to stumble into mistakes in Singapore’s employment, payroll and income tax landscape as it will cost you time and money. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in-country.
Foreign companies can pay their staff working in Singapore, but to hire and pay employees there, they must establish a legal entity. Non-resident companies typically choose to open a limited liability subsidiary, particularly as a small to medium-sized enterprise, to gain a foothold in the Singapore market. The subsidiary can have 100% foreign ownership but is a separate legal entity from the parent company under Singapore’s Companies Act.
Before running payroll in Singapore, taking this step requires detailed practical knowledge of company, tax and employment law and staying up to date with taxation rates. However, there is an alternative and more straightforward route. Bradford Jacobs’ will navigate around these potential pitfalls effectively and efficiently. We recruit the staff in-country and then implement our comprehensive knowledge of tax and payroll regulations. As part of our service, Bradford Jacobs files returns and remits associated payments for tax and social security contributions directly from our payroll system to the relevant authorities.
Outsourcing your payroll in Singapore will streamline your operations by dealing with the following for your staff:
For foreign corporations to run payroll for their staff in Singapore, they must establish a legal entity subsidiary, with the typical choice being a private limited liability company. This is considered an ideal subsidiary type for setting up a small and medium enterprise as a first step into the Singapore market. All Singapore companies operate under the Companies Act, which covers incorporation and regulations dealing with shares, directors and officers, accounts and other provisions.
Registration procedures include the following:
For more information, download our free guide or get in touch with our consultants here