Category: Business

Flexible working: a new business imperative in the war for talent

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Flexible working: a new business imperative in the war for talent

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Flexible working is no longer a unique perk offered by trendy startups and technology giants. It is now a business imperative for any organisation and encompasses much more than just a remote work lifestyle. Companies that ignore people’s wishes for flexible working arrangements, including flexible leave and benefits, are missing out on retaining and engaging their current employees, boosting their employer brand and, ultimately, attracting top talent.

Flexible working environments are a chief concern across the Asia-Pacific region. A recent study by the Institute of Public Studies (IPS) found that 1 in 2 Singapore workers believe flexible work arrangements should be the new norm. But flexible work is now defined beyond a hybrid office environment. Employees are seeking flexibility to maintain better work-life balance, requesting flexible leave policies, benefits, and working hours.

Failing to implement flexible working arrangements may result in your top talent walking out the door. And replacing those people is becoming increasingly difficult. Over half of Chief Human Resources Officers (CHROs) reported the shortage of critical talent as the No.1 trend impacting organisations. HR experts warn that businesses that refuse to offer flexible work options could be losing out on up to 70% of job seekers.

Changing your policies overnight to accommodate flexible work, however, isn’t easy. We’ve put together our top tips to help you identify how flexible benefits might work in your organisation and how to create a positive work-life balance for your employees.

What is the meaning of flexible working?

By definition, flexible working is a shift away from traditional working models to adopting more versatile arrangements, such as staggered working hours and the option to work remotely. Most organisations acknowledge the importance of work-life balance and have been practising flexible work arrangements for some time. Things like part-time hours, job sharing, and time in lieu all constitute flexible working.

Post-pandemic, a common example of flexible working in Singapore is a split or hybrid work week. This is when people spend two days in the office and three days at home (or some such combination). Flexible working hours are also more common nowadays, where employees have the option to come into the office between a specified time bracket and leave after they have completed their necessary time in accordance with when they came in.

But flexible working can also be presented in other ways, and your employees are searching for solutions to help improve their work life balance.

What are the benefits of flexible working?

The benefits of flexible working are wide-ranging for employers and employees alike.

Some benefits for both parties include:

  • Work/Life Balance: With the option to manage their own time effectively, employees can balance their personal commitments with their work duties, providing them more time to focus on the things they enjoy or need to take care of outside of work. This could involve attending gym classes, picking up their kids from school, and so on.
  • Employee Retention and Satisfaction: When presented with flexible options when it comes to work, employees feel more respected and understood by their employers, which translates to increased loyalty and commitment.
  • Productivity and Motivation: Flexible working allows team members to tackle their tasks more effectively, where they have the choice to work from environments they are more comfortable in or at times when they are most productive.
  • Alleviated Stress: Employees are less likely to experience burnout or feel high levels of stress if they are allowed to work more flexibly.
  • Autonomy: Many employees fail to work well under pressure or when they feel as if they are being micromanaged. Flexible working allows for a level of autonomy where employees can manage their own work and feel trusted by their employers to get the job done.
  • Successful Recruitment: Potential candidates in the modern workforce are more likely to accept a job offer if the package includes flexible working options, such as hours or remote working benefits.

What are some examples of flexible working?

Flexible working hours

Allowing employees to stagger start and finish times to suit their schedules can make a big difference to their workstyle and efficiency. This gives staff an opportunity to work at a time that best suits their lifestyle, providing it doesn’t impact productivity. If you decide to offer flex time, it might be best to allocate a few hours during the week where all employees should be online simultaneously, or schedule a regular check-in so everyone is on the same page.

Medical leave without certification

This can be a fairly simple change with a significant effect. Not asking for medical certification when employees are sick helps build trust, and shows flexibility and understanding from the employer.

Condensed schedules

This could be anything from a four-day workweek to a nine-day fortnight. Allowing staff to work fewer hours can promote greater productivity. It gives your employees a chance to improve their work-life balance and also helps the business financially.

Unlimited leave

Offering employees unlimited leave is a trend with technology giants Netflix, Adobe and Hubspot. They offer unlimited paid time off (within certain parameters) to align with their strong employee-focused policies. While this is not sustainable for most companies, you may like to adopt a flexible leave approach that works for your business. It is important to note that most employees will not take advantage of this policy, and they will feel higher levels of appreciation towards the company and use their leave respectfully in turn.

Birthday leave

Everyone loves a day off for their birthday, so why not offer it as an extra paid day off for all employees? This small cost to the business could be the deciding factor in recruiting and retaining skilled employees. It sends a clear message that the company supports and actively promotes your health and wellbeing.

FLEXCATIONS & WORK TRAVEL

Giving your staff the opportunity to combine work with personal travel allows them to maximise their vacation time without it impacting work schedules. An example of this could be an employee traveling to their holiday destination on a Thursday night, working remotely on Friday and then starting their holiday at 5pm that day. In doing so, the employee can maximise their time away without any impact to their productivity.

Temporary changes in schedules

Allowing employees to make temporary changes to their office hours, reducing to part-time for a short period or taking on more hours when needed, gives them the flexibility to work around personal or family commitments while still staying loyal to the organisation.

Lifestyle or recreation leave

Granting employees leave to pursue interests or activities that are important to their wellbeing. This might include sporting activities, volunteering opportunities or health and wellness activities.

BUILD A FLEXIBLE WORKING/BENEFITS POLICY THAT WORKS FOR YOUR ORGANISATION

Understanding the many different ways to apply flexible opportunities will help you foster a strong sense of company loyalty and respect. Empowering your leaders to deliver these flexible benefits builds rapport and strengthens connections amongst teams.

With greater flexibility comes greater loyalty

Despite an overwhelming push from workers to offer more flexibility, some organisations are still resisting. A study by Ernst & Young revealed that 35% of employers want all of their employees to return to the office full-time post-pandemic.

Fears around lack of oversight, impact on collaboration efforts and challenges in making flexibility equal for everyone make it difficult for some to embrace flexibility in the workplace. But starting small is better than no start at all. Take a look at what simple changes you can implement and let your employees guide you in building a flexible workplace model that works for them.

Improving employee wellbeing and building trust

Beyond the benefits of increased retention, job satisfaction and worker engagement, perhaps the biggest payoff for organisations offering flexibility is building trust.

Trusting your staff to work when they say they will is one of the most empowering things you can do for your people. Without the constant supervision of their bosses, people feel more in control, more autonomous and empowered.

In offering flexible leave and benefits, employers can not only show their loyalty and appreciation to current employees, but also appeal to new candidates, widening your recruitment pool.

How to introduce flexible working into your organisation

Before you research all the ways you can offer flexibility, it’s important to step back and consider the basics.

Understand what flexibility means for your company and team

Just as your organisational and employee values need to be fundamentally aligned, so do your flexible working arrangements. Without understanding what flexibility means for your people and how they want to shape it, you may be creating ‘benefits’ that people aren’t interested in taking up. Or, worse still, you may create the illusion of bias by offering flexibility to some but not others.

You can use engagement and pulse surveys to uncover the key issues around flexibility for your people. What are they struggling with? What would make the biggest difference to them right now? And how do they view flexibility at work in their own roles?

It’s also important to consider generational differences, particularly if your organisation is demographically diverse. Given that most companies now have as many as five generations of workers, it’s likely that everyone’s ideas around flexibility and what is beneficial for them are going to differ. Flexibility to someone in their 20s is unlikely to mean the same thing as it does for someone in their 60s.

How do flexible benefits work?

One way that organisations are tackling this issue is with flexible benefits. Here’s a quick rundown of how flexible benefits work.

    The organisation provides a set of benefits outside people’s regular wages (for example, health insurance, extra leave, on-site daycare).
    The organisation determines the total monetary amount of benefits that can be taken.
    Employees can then pick and choose a combination of the benefits that are most valuable to them.

    Offering these types of flexible benefits can be a good way to ensure people are getting value from the benefits you’re offering.

    It’s important to note that in Singapore, organisations that want to offer flexible benefits must ensure they are correctly reflecting the value of the benefits in Central Provident Fund (CPF) payments. It may be worth getting the help of a trusted HR and payroll advisor with knowledge of the local regulations, as the rules are complex and can be confusing.

    Assess your organisation’s readiness for flexible working

    Review the purpose, mission and realities of your business. How much flexibility can you put into your essential services and what kind of flexibility makes sense for your organisation?

    What will the initial impact be on your employees and how will you manage this impact? Having the answers to these questions will allow for a smoother transition and greater acceptance of flexible leave and benefits.

    Some flexible benefits and leave policies might happen overnight, while others will take time. Building the right framework and gauging employee perspective and support is crucial.

    It’s important to examine your current systems and ensure any new initiatives can be integrated. There may also be knock-on effects of introducing new flexible ways of working, for example, the implications of withholding tax in certain jurisdictions. It can be wise to get expert advice from a trusted corporate services provider.

    Look at business contingency plans and practical implementation methods

    Having a robust strategy and contingency plan for any flexible work arrangement is essential. It’s important to mitigate any risk to both employees and the company when any new framework is implemented.

    Work with your leaders to ensure work can continue seamlessly. What processes do you need to put in place to minimise disruption?

    Consider hiring an external expert who can advise on implementing flexible policies. They can help review the complexities with the leadership team and ensure executive alignment to advise on possible solutions.

    As always, consistent communication about the purpose and practicalities of flexible work is key. Sometimes the biggest hurdle is the last hurdle, which is often communicating why you’re doing what you’re doing. Although with flexible working, and the many benefits it offers, this shouldn’t be too difficult, provided you’ve taken the time to really understand what flexibility means to your employees.

    FlexibleWorking3

    Take small steps to a build a more flexible workplace

    Flexible working isn’t just a pandemic-related side effect — it will fundamentally shape how we work in the future. And in many ways, it already has. Singaporean organisations that take notice of it and implement flexible working arrangements now, such as working hours and flexible leave policies, will benefit from better retention rates, more engaged and productive employees, and a stronger employer brand.

    But don’t be tempted to implement a blanket policy or copy a model from another organisation.

    It’s important to create the right type of flexibility for your organisation. Find out what flexibility means to your people, consider your business needs and find a solution that works for your company.

    Remember, you can start small when introducing flexibility into your workplace.

    It doesn’t have to be a bold shift. You can introduce flexibility in incremental phases or start with small initiatives. These initiatives might include closing the office at 4pm on a Friday or giving someone the day off on their birthday. Sometimes the smallest gestures can have the biggest impact on your people.

    What does flexible working look like in your organisation now and where would you like to be?

    Enhance productivity and employee satisfaction

    To implement flexible working arrangements with minimal disruption to current operations, one approach is to improve the efficiency of existing workflows and reduce manual labor hours. BoardRoom’s team of experts help to take the stress off your HR team by optimising your payroll processing, which reduces payroll error and in turn employee dissatisfaction. Reach out to us to discuss how you can benefit from our experienced payroll specialists.

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    Now is the time for business transformation in APAC

    Business Transformation

    Now is the time for business transformation in APAC

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    In the wake of COVID-19, companies around the world are scrambling to adapt to rapidly changing corporate landscapes. Traditional working models are no longer effective, forcing business leaders to make quick decisions amid widespread uncertainty.

    But with major disruption comes major opportunities for business transformation and expansion.

    This is especially true in the Asia-Pacific (APAC) region. The perfect storm of aligned attitudes, economic promise, consumer engagement and technological advancement culminates in huge potential for businesses of all sizes to not only recover but flourish.

    A bright future lies ahead

    Despite the ground-shaking impact of COVID-19, APAC’s corporate sector remains dynamic. The region’s enormous internal markets, plentiful resources and wide consumer reach have provided fertile ground for a multitude of homegrown innovators and disruptors to thrive. To name just a few, think WeChat, Grab, Alibaba and Tencent.

    APAC businesses have long been hungry for progress, and this collective fervour likely bolstered the region’s resilience through the pandemic. Asian GDP remained relatively stable when compared with other major economies, contracting by just 1.5%, while Europe and the United States experienced falls of 6.1% and 8.9%, respectively. Local businesses continued to scale up during this time, encouraging forward momentum that will be vital for recovery in the years to come.

    Bright future

    Optimism across the region

    The remarkable drive of APAC business owners may be due to their enduring optimism. Corporate Asia is known for its desire to work hard, achieve higher and seize opportunity.

    Despite post-pandemic uncertainty, a 2021 Sun Life survey of 2,400 SME business owners found that:

    • 74% expected their organisation’s financial position would improve in the next year
    • 70% expected the national economic situation to improve in the next year.

    This positive outlook may be why 84% of respondents planned to expand their business in 2022.

    Opportunities abound

    Opportunities Abroad

    Local governments in APAC tend to share the progressive attitudes of their commercial counterparts, especially when it comes to digital innovation and economic recovery.

    Supportive initiatives like Singapore’s Smart Nation continue to be introduced across the region, creating valuable opportunities to collaborate with local partners.

    The positive outlook for Asia’s economic growth is further buoyed by a growing consumer class: MGI research indicates that 70% of Asia’s total population is expected to be part of the consuming class by 2030 — up 15% since 2000.

    APAC is also uniquely positioned to leverage the digital boom that is revolutionising the business-to-consumer landscape. During the pandemic, 60 million people became online consumers in South-East Asia alone.

    How businesses can realise their full potential

    Companies doing business in Asia have a rare opportunity to use the region’s post-pandemic optimism as a catalyst for expansion. According to McKinsey and Company, a prosperous new era for Asia is within reach if companies engage in a collective effort to grow and break new ground.

    The recent Regional Comprehensive Economic Partnership between ASEAN, China, India, Australia, South Korea, Japan and New Zealand will support widespread business development in a number of ways. Importantly, it will strengthen regional economic collaboration by making regional trade and investment safer, easier and more efficient.

    To take advantage of new opportunities for intraregional expansion and connectivity, Asia-Pacific enterprises need to be proactive about adapting their operational and commercial strategies accordingly.

    The power of digitisation

    Asia has the most significant number of mobile phone users globally — a fact not gone unnoticed by the region’s corporate sector. Local companies are embracing tech faster than anywhere else globally, with the pandemic serving to accelerate this process.

    For example, sales of industrial robots in China rose by almost 20% in 2020.

    Perhaps unsurprisingly, Asia is the fastest-growing region in international e-commerce, meaning digitisation is a must for most businesses wanting to get ahead.

    Strength in partnership

    Tech adoption not only opens up business-to-consumer opportunities but also supports business-to-business relationships, which will be vital for APAC’s economic recovery. Initiatives like Go Digital ASEAN are already supporting more cross-country collaboration and market access throughout the region.

    A digitised landscape promotes fluid borders, making it easier for businesses to join intraregional trade networks and thereby increasing Asia’s share of global trade. And as more businesses expand, Asian economies will benefit from each other’s strengths.

    With Asian companies historically favouring alliances, businesses that successfully branch into neighbouring countries now can expect a significant return on investment.

    Climate adaptation and sustainability

    The climate emergency brings many risks for businesses, while climate adaptation provides opportunities. Business leaders will need to account for both if they are to secure growth and resilience for their organisation in the long term.

    Five countries in Asia have proposed or passed legislation mandating net-zero emissions, which businesses will need to cater to in their operations and strategies.

    Opportunities for climate innovation are more abundant than ever. With the costs of solar and land-based wind energy in China and India among the lowest in the world, both regions are positioned to dominate global growth in solar and wind.

    Climate Change

    Focus areas for leaders looking to expand

    In many ways, the proliferation of APAC’s economy now rests on the shoulders of its business leaders. To keep up with the region’s comparatively rapid pace of change, leaders must be bold and agile in their approach to business performance improvement.

    Leaders’ focus areas need to shift. There needs to be greater attention given to corporate governance — which lags behind Western standards — working models and resource allocation, as well as digital innovation and consumer trends.

    1. Business operation enhancement

    Throughout APAC, working environments are changing. Many businesses are implementing hybrid models, with the upshot being greater employee satisfaction and access to broader talent pools. Leaders are also taking action to speed up decision-making and productivity by removing silos and increasing employee autonomy.

    If your work environment reflects a traditional model, you may need to identify modernisation opportunities as part of your expansion plans.

    With the continued localisation of supply chains and increase in domestic trade, businesses will also likely benefit from following APAC’s regionalisation trend. Intraregional partnerships often impart valuable consumer insights, especially if the companies in question collect vast pools of data via their service provision. For example, grocery chain Freshippo allows Chinese enterprises, new and established, to share data in omni-channel supermarkets.

    Strengthening your operations with corporate partnerships will give your growing organisation extra support and resources to thrive.

    2. Product and process innovation

    Asia is home to more than half of the global population, with billions of people engaging with brands online. This means innovative, well-executed digital marketing strategies are likely to exceed expectations.

    According to Sun Life, over 90% of business owners changed their business strategy in response to the pandemic, with new methods of distribution and virtualisation introduced. Research also found businesses that invested in innovative strategies experienced positive changes in performance.

    So, where should businesses put their best creative thinkers to work? With the digital generation expected to make up half of Asia’s consumption by 2030, technological innovation in products and processes should help fast-track businesses’ marketing success.

    Increased spending is expected for:

    Social media
    Food delivery
    Solo travel and dining
    Smaller packaged foods
    Pets and robot companions

    The opportunities for digital product and service innovation are virtually limitless. For example, DBS Bank experienced an incredible 400% increase in their customers’ use of digital tools.

    Whether your business sells products or services, investment in digitisation improvements and opportunities may boost your revenue to a significant degree.

    3. Go-to-market excellence

    To achieve go-to-market success in APAC today, businesses need to intimately know their consumers — and themselves.

    Asia’s new consumers are early adopters of new technology, so it is a good time to take risks with technological innovation. Consider how Grab and Didi quickly acquired ride-hailing giant Uber in South-East Asia and China respectively: despite direct competition from Uber from the outset, both of these start-ups found better ways to meet the needs of local rideshare users through tech.

    Businesses will be wise to use the data they generate from sales to better service their target audiences. In contrast to Western attitudes, Asian customers are generally content to share their data with companies.

    When it comes time to expand, maintaining consistency of brand identity and reputation becomes harder but also more vital. A 2017 Stewardship Asia Centre study showed that 80% of successful and long-standing family businesses had a clearly defined purpose.

    Essentially, businesses need to reaffirm their core purpose and make sure it is communicated effectively to their internal teams and their audiences.

    Grow successfully with a corporate services provider

    There is no doubt that expansion will provide many rewards for businesses that act now, but it is important to do it right. Each APAC country comes with its own cultural nuances and regulatory system, so business functions, strategies and go-to-market plans need to be customised to suit.

    For example, payments platform Stripe has developed tailored products for each region in which it operates, with e-wallets and bank-based systems rolled out in Singapore and Malaysia respectively.

    But regional differences should not cause businesses to hesitate, for the perfect solution may lie in engaging the services of a corporate services provider.

    Innovative full-service providers like BoardRoom are able to handle a wide range of essential corporate functions. They manage everything from payroll to company secretarial while providing clients with one point of contact for fast and easy communication. With comprehensive local knowledge and commercial experience, they can advise companies on the best way to cater to customer preferences in each region.

    It is important to choose a global firm that can grow with you, empower your team to make smart decisions and help you form critical partnerships locally.

    Now is the time to act

    To achieve success in post-pandemic APAC, businesses must traverse untrodden ground. Traditional strategies need to be rethought, and creativity must be employed to leverage fresh opportunities.

    But as businesses collectively expand beyond borders and company incorporation rates rise, contributions to workforces, suppliers and households will increase, supporting a healthy economy as a result.

    BoardRoom provides world-class service at a local level to help your business grow and prosper throughout APAC.

    Contact us for a one-on-one discussion about your individual expansion plans and business goals.

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    How to earn trust with a values-led approach to business operations

    Business Operations

    How to earn trust with a values-led approach to business operations

    boardroomsuperadmin

    Asia-Pacific organisations are taking a values-led approach to business operations in 2022, winning trust from customers, employees and business partners and gaining a clear competitive advantage.

    Trust is a modern imperative for business success, but it’s notoriously hard to build, especially in times of uncertainty. In 2022, businesses worldwide entered a new era of unpredictability as they entered the third year of a global pandemic. During this time, they also had to navigate major economic changes, geopolitical instability and climate emergencies.

    Amid this confluence of crises, trust matters more than ever.

    People are looking to do business with companies they trust and whose purpose aligns with their own beliefs. An Accenture study found that 62% of consumers are looking for organisations to take a stand on issues such as sustainability, transparency or fair employment practices. The closer those values align to their own, the better.

    Having a clear set of values and demonstrating those values in your day-to-day business operations can create a powerful competitive advantage for your business. Those who focus on strong values enjoy more engaged employees, stronger business partnerships and loyal customers.

    Leading with values will lead to sales

    Corporate values can seem like a vague or un-quantifiable concept, but they can be more powerful (and more measurable) than you may realise.

    Research shows organisations that take a values-led approach to business operations gain a clear competitive advantage. According to Forrester, 23% of online adults in Singapore have tried a new brand because they believe in the values the brand stands for.

    The reverse is true too. A recent study from Adobe found that 66% of APAC consumers refuse to purchase from brands that violate their trust. Trust, once broken, rarely leads to repeat customers.

    What are core values?

    Having a core set of corporate values can help clarify where you stand as an organisation and attract the kind of customers, employees and business partners you want to work with.

    Each organisation will have a different definition of corporate values, but, broadly speaking, they are deeply ingrained principles that guide all of a company’s actions; they set the tone for the organisation and shape its culture, operations and activities.

    Core values can also be described as a company’s purpose, something that McKinsey & Company described as being “key to resilience and success in the post-pandemic future”.

    In a study of 200 successful organisations in Asia-Pacific, 80% had a clearly articulated company purpose and felt this was crucial to the development of their business.

    Whether you call it corporate values, core principles or your company’s purpose, the most important thing is to go beyond the words.

    Core Values

    Take action on your values to drive trust

    It’s not enough to simply state your corporate values on your website or display them in your staff kitchen. People will quickly see through this as a corporate PR move.

    You must give your core values meaning by embedding them into your day-to-day business operations.

    For organisations with small set-up and simple business operations, aligning your values to build trust with customers can be a simple endeavour. However, for organisations with large operations, complex hierarchies or offices across different countries within Asia-Pacific, it’s a lot more difficult.

    Here are some examples of best practices in business trust-building.

    Understand your stakeholders' values

    Although the pandemic has had a profound impact, it’s also given us the chance to step back and gain a deeper understanding of what our stakeholders value.

    • What do your customers value? Do they care about social justice, environmental causes, data protection or something else entirely? What type of brands do they want to support?
    • What kind of company do your employees want to work for? What does working for your company say about them and their professional brand?
    • What kind of company do your business partners want to align with? Will your values create a positive or negative reflection on their brand?

    Assess your trustworthiness

    Once you have a clear idea of what values your customers, employees and business partners are looking to align with, look inside your own organisation to assess how well your people engender trust.

    A 2020 Deloitte survey pinpointed four critical contributors to trust.

    • Humanity: Does your organisation genuinely care for the experiences and wellbeing of others?
    • Transparency: Does your organisation openly share information, motives and choices in plain language?
    • Capability: Does your organisation possess the means to meet expectations?
    • Reliability: Does your organisation consistently and dependably deliver upon promises made?

    To gauge your trustworthiness, Deloitte recommends asking your customers, employees and business partners directly how well your organisation meets expectations in each of these areas.

    Examples of best practices in business - two colleagues shaking hands

    Coordinate trust efforts across functions

    Alignment between different business functions is key to building trust within your organisation. When working on trust-building efforts, you’ll need efficient coordination between business units such as product development, HR, marketing and IT.

    As with any company-wide endeavour, gaining support from the executive team is crucial to the success of projects like this. Involving them early and often can help bolster the success of your trust-building efforts.

    Building trust across borders

    Understanding how trust is defined and built is key to gaining a competitive advantage. The problem is that not everyone defines trust in the same way.

    For example, while North American and European cultures tend to correlate openness with trust, leaders in Asia-Pacific put more weight on reputation and competency when assessing trustworthiness.

    Businesses looking to set up in the Asia-Pacific region need to understand these cultural subtleties. It’s an important first step in creating strong bonds with customers, employees and business partners.

    Partnering with a corporate advisory firm that understands these regional subtleties is a smart move, especially if you don’t have people within your organisation who can help you navigate these complexities.

    BoardRoom has an extensive network of professionals with the right expertise to help you understand the market. It simplifies business across the Asia-Pacific region and, most importantly, helps you comply with local laws and stay in tune with your company values. You can find us in:

    • Singapore
    • Australia
    • China
    • Hong Kong
    • Malaysia.
    Map of air routes in Asia

    Is it time to redefine your corporate values?

    Forrester believes that trusted organisations will be the ones that succeed in the 2020s. They’re confident that trusted organisations will build unbreakable bonds with customers, attract the most dedicated talent and create hard-to-copy engagement models with partners and emerging technologies. And that this concept is something people will actually embrace instead of fear.

    However, this sort of task takes a lot of introspection and requires input and coordination from many business functions. Implementing any change or business transformation requires an in-depth understanding of how your team operates, and what support you need to provide to ensure proficiency and adaptability throughout the process.

    It could be one of the most important things you do this year, but it’s not important enough to let your business operations fall by the wayside.

    Let BoardRoom take care of your day-to-day corporate services so you can focus on building long-term strategies to build trust. Whether it’s outsourcing your payroll or having a trustworthy partner to take care of your tax, we can help.

    Take a look at our comprehensive suite of services online:

    Get in touch to find out more about how we can help your organisation.

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    Clearing the Complexities of SPAC in Singapore

    Photo of an office with four monitors set up on a desk, with a keyboard and telephone. The monitors have screen shots of processing data on a blue background

    Clearing the Complexities of SPAC in Singapore

    boardroomsuperadmin

    Transitioning to a public company is an important milestone for a business. Access to capital can open opportunities for growth, reduce debt, and improve your public profile. But not every company is well-suited to an initial public offering (IPO), and the process can be long and complicated. Many companies in Singapore are considering mergers with special purpose acquisition companies (also known as SPACs) as an alternative to a traditional IPO.

    What is a SPAC?

    If you are familiar with capital markets, you have probably heard these terms before. Still, you may be wondering what SPAC means.

    Here is a simple definition:

    A SPAC (short for Special Purpose Acquisition Company) is a publicly-traded corporation formed with the objective of acquiring a privately held business to enable it to go public. In other words, they can grant private companies access to public markets. Because SPACs typically have no existing business operations or stated targets for acquisition, they are also known as “blank cheque companies”.

    SPACs are normally formed by investors or sponsors with expertise in a particular industry or business sector, with the intention of pursuing deals in that area. Investors in SPACs can range from well-known private equity funds to the general public.

    Mixed photo and illustration image of Singapore stock exchange market trading graph with the Singapore flag industrial area.

    The capital raised through the SPAC process is placed in an interest-bearing trust account. Then, the SPAC founders have a limited time (typically 18 to 24 months) to acquire a suitable company.

    The funds in the trust can only be dispersed for one of two reasons:

    1. to complete an acquisition of a company;
    2. to return the money to investors if they don’t complete an acquisition in the set timeframe.

    After the SPAC successfully acquires the private company target (through a process known as “de-SPAC”), the target company then assumes the public listing on the exchange.

    The rise of SPACs in Singapore

    SPACs have been around since the 1990s and have increased in popularity since 2013. However, it wasn’t until 2020 that they really started to gain traction, attracting big-name underwriters and investors and raising a record amount of capital.

    In 2020, SPAC listings accounted for more than 50% of new publicly listed US companies. By 2021, there were more than 600 SPACs in the US, raising $162 billion.

    In the Asia-Pacific region, both Hong Kong Stock Exchange (HKEX) and Singapore Exchange (SGX) have received significant market interest to introduce SPAC in their capital markets.

    Singapore launched its SPAC framework in September 2021, and to date, there have been three SPACs listed on SGX. Hong Kong followed suit, welcoming its first SPAC listing on the HKEX in March 2022.

    As Asia continues to be the growth engine for the world, it is predicted that there will be many more companies in the region involved in SPACs, as both sponsors and targets.

    Stock Landscape photo of the Singapore financial district and business buildings in the background. Colourful streaks representing speed of lighting also included.

    SPAC benefits and challenges

    Whether you choose to go public via traditional IPO or SPAC, you will face similar regulatory scrutiny.

    But there are some benefits of SPACs, including:

    • Speed to market: a SPAC merger can expedite the timeline to become a public company, normally within 4-6 months, compared to an IPO, which typically takes 6-9 months.
    • Lower fees: SPAC transactions attract around 5-7% fewer fees than IPOs in terms of legal, audit, registration and administrative costs;
    • Flexibility in deal terms: SPACs offer more flexibility than IPOs when it comes to negotiating favourable deal terms, e.g., valuation or additional investment;
    • Greater market certainty: unlike traditional IPOs, target companies can negotiate the price of their stock up front — sometimes months before the transaction closes — giving them more certainty in volatile market conditions;
    • Access to expertise: SPAC sponsors are normally led by experienced management teams who can offer business insights and networks to leverage;

    Preparing for successful SPACs in Singapore

    A SPAC is created with the sole purpose of acquiring an operating business. It is also considered to be an alternative way of seeking a listing for a company.

    However, these transactions are not without their challenges. Singapore companies will need to prepare for:

    • An accelerated public company readiness timeline: SPAC targets must be ready to operate as a public company within three to five months of signing a letter of intent.
    • Complex accounting, financial reporting and registration requirements: these may differ based on the lifecycle of the SPAC involved.

    This means you will need expert guidance and a comprehensive project management plan to ensure you are ready to go.

    You must also examine the stringent requirements for SPACs on Asian stock exchanges. For example, Singapore launched its SPACs framework in September 2021 and, to date, has seen three SPACs listed on SGX, with more to come.

    Photo of a hand touching a graphic image of compliance rule law and regulation graphic interface

    According to the SGX listing under the SPAC framework released in September 2021, companies must have the following key features:

    1. Minimum market capitalisation of S$150 million
    2. De-SPAC must take place within 24 months of IPO with an extension of up to 12 months subject to fulfilment of prescribed conditions
    3. Moratorium on Sponsors’ shares from IPO to de-SPAC, a 6-month moratorium after de-SPAC and for applicable resulting issuers, a further 6-month moratorium thereafter on 50% of shareholdings.
    4. Sponsors must subscribe to at least 2.5% to 3.5% of the IPO shares/units/warrants depending on the market capitalisation of the SPAC
    5. De-SPAC can proceed if more than 50% of independent directors approve the transaction and more than 50% of shareholders vote in support of the transaction
    6. Warrants issued to shareholders will be detachable and maximum percentage dilution to shareholders arising from the conversion of warrants issued at IPO is capped at 50%
    7. All independent shareholders are entitled to redemption rights
    8. Sponsor’s promote limit of up to 20% of issued shares at IPO

    Choose a provider that knows the region

    Companies considering a SPAC transaction will need to make sure they meet regulatory requirements for the market they’re operating in.

    It is critical for target companies to understand the criteria and risks, as well as assess their readiness to operate as a public company, just as they would if they were considering the traditional IPO route. They need to prepare themselves to navigate these challenges.

    Choosing an experienced corporate service provider with in-depth knowledge of SGX’s SPAC listing rules will help you navigate this complex territory.

    Our team has over 50 years of experience with taking Singapore companies public and can help ensure you are compliant with local laws and regulations if you are considering a SPAC transaction. In fact, over 50% of SGX-listed companies trust us with their share registry services.

    Think beyond the bell ringing

    Whether you choose to go for a traditional IPO or the SPAC route, it’s important to think long-term. Once you go public, there are many ongoing requirements to consider.

    Publicly listed companies are subject to high levels of scrutiny from shareholders and regulators alike. The list of ongoing obligations is long and complex, which is why it’s an SGX requirement to appoint a share registrar.

    Partnering with a trusted share registrar in Singapore ensures your company remains compliant with local regulatory requirements while keeping shareholders engaged and informed.

    Here are some typical services a share registrar provides:

    • ongoing share registry maintenance and administration;
    • ensuring all corporate actions are processed according to SGX regulations;
    • meeting management and scrutineering services.

    And, if you operate across multiple jurisdictions, you will need someone who has specialist expertise and experience across multiple APAC countries.

    As one of the leading corporate service providers in the Asia-Pacific region, BoardRoom has over 50 years of experience guiding many listed corporations in Singapore, Malaysia, Hong Kong, and Australia, including expertise with SPACs.

    Contact us to set up a personalised consultation and see how we can add value to your business today.

    Related Business Insights

    Payroll outsourcing vs payroll software in Singapore: which is right for you?

    Payroll outsourcing vs payroll software in Singapore

    Payroll outsourcing vs payroll software in Singapore: which is right for you?

    boardroomsuperadmin

    The past few years have seen dramatic changes occurring across the globe. Business operating models have evolved. The regulatory landscape has become stricter, and most organisations have shifted to hybrid working models.

    These changes have all had a profound impact on payroll. Organisations are under more pressure than ever to deliver accurate, timely payroll services while still complying with changing regulations.

    This is leading many businesses to rethink how they manage their payroll function. Two common efficiency-boosting options for companies in Singapore are payroll software or outsourcing payroll. But which option is most suited to your company’s requirements?

    Both methods offer advantages, which can make it difficult to evaluate the one that is best for you. Plus, the number of payroll software options in Singapore seems to be limitless, increasing decision complexity.

    The right option for you will depend on several factors, including your company’s:

    • size;
    • growth strategies;
    • compliance requirements; and
    • operating model.

    To help simplify the decision process, this article explores both payroll outsourcing and payroll software in Singapore, and provides guidance on deciding which model is right for you.

    What is outsourced payroll?

    Outsourcing payroll involves hiring a specialist payroll company to handle some, or all, of your payroll functions. An outsourced payroll provider usually offers a wide range of services, so businesses can choose the options that best suit their specific needs.

      payroll-outsourcing-alt-3

      Some typical services that payroll outsourcing providers in Singapore offer include:

      • computing gross to net salary and CPF;
      • providing payroll detail, variance reports and payroll journals;
      • disbursing net salary and CPF via bank accounts, and issuing confidential payslips;
      • preparing year-end IR8A forms and appendices;
      • preparing IR21, GML, NS MUP, CPF refund, government statistics forms, etc. per the Singapore Employment Act; and
      • electronically administering employee leave and expense claims.

        Outsourcing payroll is a well-documented way to improve HR efficiency and reduce costs. Additionally, outsourcing your payroll function can help you to:

        • Save time: outsourcing your payroll enables you to keep managing your core business operations without having to maintain staff to handle day-to-day payroll functions in-house.
        • Increase cost visibility: one of the major benefits of outsourcing is the ability to limit cost fluctuations. You maintain complete visibility over how much you spend each month. And because any additional hires come at a pre-determined rate, you can more easily plan hiring costs.
        • Easily maintain compliance: an outsourced payroll specialist should maintain a team of experts with experience in payroll regulations. This significantly lowers your risk of financial penalties for non-compliance.
        • Increase productivity: handing over your payroll processing reduces the administrative burden on your team, freeing them up to focus on growth and profitability.
        • Enhance security: in a world rife with data security breaches, reputable outsourced payroll providers offer multiple servers, backups and other security systems and processes. These features protect employees’ sensitive personal data and grant you peace of mind as an employer. Additionally, outsourced payroll providers should have robust internal processes that comply with rapidly changing best practices around personal data protection rules.

        What is payroll software?

        While many companies in Singapore outsource their payroll function, others choose to implement some form of dedicated payroll software. Compared with manual processes like Excel spreadsheets or paper records, these options streamline your payroll process and offer the opportunity to automate certain aspects.

        Of course, you still need people – usually your internal HR or finance team – to input wages and hours worked into the software. But once it has the data, the software uses it to automatically perform calculations, deduct withholdings and execute routine payroll tasks.

        As mentioned earlier, companies have many options when it comes to payroll software in Singapore, and benefits can vary extensively between them.

        payroll-services-imgg

        However, a high-quality payroll solution can help your company to:

        • Greatly reduce the chance of human error: a payroll system can automatically calculate bonuses, expenses, holiday pay, etc. with minimum effort. Compared to someone manually entering data into a spreadsheet or system, this can significantly reduce errors.
        • Automate processes: a payroll solution helps to save time and resources by automatically performing manual processes such as generating payslips and year-end reporting.
        • Secure data: reliable payroll software encrypts data and saves it securely on dedicated cloud-based servers.
        • Save time: moving from manual payroll processes to a payroll software system can reduce the need for team members to perform many time-consuming tasks.
        • Gain insights: modern payroll platforms provide real-time reporting capabilities, efficiently streamlining payroll reporting compared to clunky legacy systems.

        Which is right for you? Two important factors to consider

        There are as many advantages of outsourcing payroll services as there are of using SaaS (software as a service) payroll software. The right option is an individual decision that depends on a variety of factors.

        However, we recommend focusing on two considerations as you weigh up your options.

        1. Your company size and growth trajectory

        Payroll software can provide a simple, straightforward payroll processing solution, which can be particularly appealing for smaller companies and start-ups. Purchasing payroll software and employing someone to manage it can also be a cost-effective way to manage payroll in-house.

        Beyond this, you can typically maintain greater control over in-house payroll processes and management, since you can dictate your own process and then change it when required.

        However, as your business grows, so does your payroll complexity.

        If your internal teams are already stretched to the limit, asking them to manage payroll can present a real challenge. You know that a late pay run can result in unhappy employees. You also know that a rushed pay run may have errors. The last thing you want is for a simple payroll mistake to generate costly fines or lawsuits.

        Additionally, if your staff numbers are increasing, a good payroll outsourcing provider can help you to keep up with the changes. Partnering with them early in your expansion journey also enables them to get to know the ins and outs of your company as you grow.

        As a bonus, they may also be able to advise on and help coordinate other aspects of your business such as tax, accounting, corporate secretarial and employee share plan services.

        2. Your regional footprint

        The past year has demonstrated that given the right tools and technology, employees can successfully work from (almost) anywhere. However, this flexibility means you’ll need to consider a payroll option that factors in the new remote nature of work.

        Because SaaS payroll platforms are hosted in the cloud, accessibility is a major benefit.

        SaaS payroll platforms also give you access to information anywhere there is an internet connection, so your payroll staff can work from any location. And if the software offers self-service tools for your employees, such as accessing payslips or logging leave, they can use these remotely as well.

        However, companies that operate across borders will need an international payroll solution to ensure they correctly pay their people in multiple locations. Consider a payroll platform that can handle multi-currency pay runs, so no matter where your people are, you can pay them on time, in the correct currency.

        Flexibility may not equal simplicity

        While remote working is wonderful for employees who want more flexibility in their lives, it has caused more complexity for payroll teams.

        According to EY’s 2022 Global Payroll Survey, remote working policies and their impact on multi-jurisdictional payroll withholding is the number one payroll consideration resulting from the pandemic.

        Payroll legislation also changes frequently, so keeping up with new regulations takes time and sometimes specialist knowledge. If you are managing payroll in-house, you will need someone to stay on top of Singapore’s local regulations and update your payroll system accordingly to ensure you remain compliant.

        Similarly, if you choose to outsource your payroll, it’s worth checking in advance whether your provider has people with the right local knowledge to navigate the changing landscape.

        Regional payroll takes specialist knowledge

        If your organisation is expanding across the Asia-Pacific region, compliance tends to get complicated.

        For example, companies operating in markets with complex labour laws and regulations, such as Malaysia and China, might lack access to local expert knowledge. Without this specialist knowledge, they may struggle to operate with peace of mind.

        This is where an outsourced payroll provider can really add value.

        Outsourcing payroll to a reliable vendor can reduce the burden of worrying about fines or potential lawsuits due to misunderstanding complicated payroll requirements.

        Handing over your payroll management to a trusted third party enables you to redirect your HR team’s resources into other business-generating activities. They can spend less time becoming familiar with the different laws across each country in which you operate – and more time focused on strategy or revenue building.

        Finding a trusted payroll partner

        If you know you need help with your payroll function, it’s worth choosing a partner with experience in, and knowledge of, both outsourcing and payroll software.

        Not only can they advise you on the best solution for you, but they can also help you to adapt your payroll strategy as your company’s needs change – perhaps as you:

        • grow your headcount;
        • expand into other countries within Asia-Pacific; or
        • move to an incorporated company structure.

        At BoardRoom, we offer both payroll outsourcing services and an all-in-one cloud-based HRMS payroll solution, Ignite. Ignite helps to boost the efficiency of your regional payroll processing, giving your leaders more control and foresight for future planning.

        Ignite offers:

        • a complete HRMS solution with multi-country payroll, leave and claims processing;
        • full statutory compliance with local legislation in nine countries across Asia;
        • a flexible automated leave solution and automated payroll processing;
        • an intuitive mobile app for instant employee access to payslips, claims and leave application and submission;
        • attendance-clocking technologies, a shift calendar and a staff rostering system; and
        • a dedicated account manager who provides one easy point of contact.
        Ignite-payroll

        I still can’t decide. Can my company use both?

        Many of our BoardRoom clients use a combination of the two solutions. They might initially come to us needing payroll software; but then as they grow and expand, they decide to outsource their payroll to us.

        A trusted corporate services provider can guide you on best practices and identify key risks and potential problems. They can also provide practical solutions that save your team time and resources – not to mention, helping you to avoid costly non-compliance issues.

        And the benefit of partnering with a trusted full-service provider like BoardRoom is that we can handle other aspects of your business such as:

        Our centralised services offer assistance in multiple fields, providing access to in-depth knowledge of local payroll legislation across the region while also streamlining your outsourcing processes. And you only ever deal with one point of contact, no matter how many jurisdictions you operate in.

        That makes your work life – not just your payroll processes – simple and painless.

        Speak to our payroll specialists today about how we can help streamline payroll services for your company.

        CONTACT US FOR A QUOTE

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        Benefits of consolidating multinational taxes with one firm

        Benefits of consolidating multinational taxes with one firm banner

        Benefits of consolidating multinational taxes with one firm

        boardroomsuperadmin

        Managing accounting and tax in your company is a complex task. It is one of the most critical business processes to manage, so there is simply no room for error. For organisations that operate in multiple countries within the region, regulations and compliance requirements can be even more involved.

        According to Deloitte’s 2021 Asia Pacific Tax Complexity Survey, 80% of respondents believe tax regimes in the region have become more complex over the last three years.

        For many tax and accounting executives, finding an international tax advisor in Singapore, Malaysia, Hong Kong or China, who can handle all your accounts at a local level is ideal. But this doesn’t happen for most organisations. At least, not from the start.

        Instead, as companies grow organically, they might add offices across the Asia-Pacific region, each with different tax specialists to deal with their country’s specific needs. Perhaps this seems like a smart idea – after all, these specialists will have a deep understanding of the local tax regulations. But managing multiple specialists can quickly raise its own set of problems.

        This is why many tax leaders in multinational firms find themselves grappling with:

        • Communication siloes: getting multiple tax specialists to coordinate their operations can be challenging, especially with language and cultural differences at play.
        • Staff turnover: the great resignation is upon us, which means as more employees are leaving, there are more people to train.
        • Technology challenges: each country has its own system and method of communication, which may not feed into each other.

        If you are facing similar challenges, it might be a good time to think about consolidating your tax operations with an international tax advisor in Singapore, Malaysia, Hong Kong or China. This advisor can then help coordinate your tax efforts across the region while having one single point of contact, regardless of your base location.

        Here is what you need to know about why to consolidate your taxes with one company, and how to choose the right provider for your business.

        Do not underestimate the power of local expertise

        The tax landscape in Asia-Pacific is constantly changing, with governments regularly introducing new regulations and laws.

        This means partnering with a trusted tax advisor to help you navigate the complexities of local tax regulations is crucial for successful operations. Singapore itself has many complicated tax regulations, such as Goods and Services Tax (GST), which need expert local knowledge to understand. Also having a partner that can help you with certified tax planning, financial accounting, and compliance services will help during reporting season, allowing you to maximise tax incentives and benefits.

        Choosing a global provider with local offices will give you a premium service at a regional level.

        A reliable tax advisory service can also help you drive long-term success in your business by maximising your tax incentives and benefits. Without expert local knowledge, it can be easy to miss out on tax breaks and exemptions that your business is entitled to.

        If you’re purely a Singapore-based business, managing all this in-house may be achievable. But multinational organisations need to deal with cross-border issues and any complexities regarding tax compliance that may arise. This can quickly become unmanageable if you don’t have the right partner to help you navigate through it.

        So choosing an international tax advisor in Singapore who has connections in other countries, can significantly streamline this process and ensure the business continues to operate safely across the region.

        One contact, or many?

        When selecting a tax partner, check whether you’ll have a single point of contact or deal with different individuals in each country. If the latter is true, you may be no better off than you would with managing your teams.

        Ideally, you want access to a connected ecosystem of tax advisors while only dealing with a single point of contact. That way, you get all the benefits of local tax expertise without the headaches that come with managing in-house teams.

        Another important factor to consider when managing tax in multiple countries is dealing with cultural nuances. The Asia-Pacific region is home to a diverse mix of cultures, religions, languages and customs.

        woman standing in front of her business team discussing tax compliance

        Having people who understand, and can sensitively navigate, cultural complexities is an important part of doing business and maintaining a well-functioning team.

        A dedicated international tax advisor in Singapore, Malaysia, Hong Kong or China, can help you to navigate all of these issues, and advise you on the best approach for each country in which you operate.

        Tax compliance matters more than ever

        As regulations tighten, tax activities are attracting more and more attention from authorities. No executive wants their company to be the subject of a tax compliance audit. At the same time, however, finance and accounting teams are under pressure to do more with less, as budgets and teams are scaled back.

        Organisations are also dealing with a workforce in transition. Many employees are seeking a ‘next role’ that offers higher pay or better working conditions – reducing available resources and stretching teams beyond capacity.

        Nevertheless, businesses cannot ignore compliance requirements. Singapore has some very strict tax laws, it’s critical that your company does everything it can to follow them by paying taxes correctly and on time. Any business that does not follow tax compliance is doing so at the risk of breaking the law.

        Even something as small as overlooking a detail in tax law or inaccurately calculating taxes owed can result in non-compliance.

        And maintaining compliance with changing tax laws can be particularly challenging for multinational organisations with business partners all over the world.

        business meeting with six colleagues discussing tax notes international

        Having a team of professionals that understands not only the tax laws in Singapore, Malaysia, Hong Kong and China but also those across the entire Asia-Pacific region, can free your business to focus on its core business. The team can help you to navigate the changing tax laws across the region, and assist you in adjusting your tax reporting processes accordingly.

        And of course, if tax compliance issues arise, the team can deal with them swiftly and accurately.

        But most importantly, having a trusted team to manage tax compliance services can ensure in-depth analysis of your business structure, before providing industry-leading advice on the best long-term tax solutions. After all, it takes skilled knowledge to structure your business divisions to understand and be able to take advantage of tax benefits.

        Seek value with service

        One of the biggest benefits of outsourcing your tax function is cost savings. ‘Time is money’, and increased efficiency can substantially improve your bottom line.

        However, simply going with the cheapest option may be a false economy. When looking for a business tax advisory service, carefully consider their reputation in the market.

        Here are some questions to ask:

        • How long have they been operating?
        • What is their client footprint?
        • How many staff do they have? And more importantly, how well do they retain their employees in the long term?
        • How solid is their track record? Do they have measurable results they can share?
        • How big is their regional and international footprint? Can they support your growing business?

        To find an international tax advisor who satisfactorily answers all these questions, you will likely need to choose a premium provider.

        The good news? Partnering with an established business tax advisory service gives you complete peace of mind that they will handle your tax matters efficiently, accurately and professionally.

        Choosing a premium provider such as BoardRoom also means:

        • Low error rates: we have over 50 years of experience in the Asia-Pacific region and a proven track record of performance.
        • Fast service: we maintain high staff retention rates, so we always have the right amount of people to efficiently handle our clients’ needs.
        • Skilled staff: our staff are highly trained and keep up to date with changes in local regulations.

        Think beyond where you are today

        While planning for your current tax activities is crucial, any smart leader knows that planning for tomorrow is just as important.

        If your business already operates in multiple countries within the Asia-Pacific region, you may be considering expanding even further. This means, of course, even more legal, compliance and cultural differences to navigate.

        Therefore, it is essential to check with potential providers about their global capabilities.

        For example, BoardRoom is part of Andersen Global, a worldwide network of tax and legal professionals operating in 315 locations. As such, we are well-versed in a range of international company taxation and tax planning issues.

        In short, partnering with an international tax advisor ensures that wherever you grow your business, they have people on the ground to deal with the local tax regulations.

        Look beyond just tax

        When choosing a tax advisory service, it is also worth checking whether they handle other aspects of corporate advisory and management.

        As your company expands, you will need to navigate the issues that lead back to the important issue of tax and tax compliance. You will also need to consider company incorporation and corporate secretarial services.

        Partnering with a corporate advisory service that offers a full spectrum of corporate services, can help make expanding simpler. It is also more efficient, cost-effective and allows the business to focus on its core operations.

        man with calculator tax compliance meaning

        Streamlining your operations often becomes more important the bigger you get. Once you start to see the benefits of outsourcing your tax to a trusted firm, you may consider other areas in which they could help, such as:

        If you decide to engage a full-service firm to handle your tax, they will already be familiar with your business structure, operations and working style. This will enable them to seamlessly move to support you in other areas of your business.

        Cut the complexity by consolidating

        When you consider the cost and effort of coordinating individual tax specialists across the region, the benefits of consolidating with one partner quickly add up. Having people with an in-depth understanding of the local tax incentives and benefits your company is entitled to can create significant savings each financial year.

        But the benefits extend far beyond mere cost savings into making business simpler.

        There is no doubt that tax complexity is on the rise. Having a trusted tax advisor to help you coordinate your growing operations within the Asia-Pacific region while navigating the changing regulations can reduce this complexity.

        Speak to our tax experts today about how your company could benefit from consolidating your taxes with one partner, as well as for your international tax services needs.

        CONTACT US FOR A QUOTE

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        A Guidebook for Businesses to Excel in a Remote Working Environment

        Remote working guide

        A Guidebook for Businesses to Excel in a Remote Working Environment

        boardroomsuperadmin

        Remote working is one of the most significant changes brought about by the pandemic. Research have shown that more than 70% of workers across Asia want flexible remote work options to continue as part of the ‘new normal’.

        As a people-focused organisation, BoardRoom proactively embraced this new preference and took on the challenges in transitioning to a hybrid working arrangement for our employees.

        Through our experience, we’ve gained new perspective and tips in ways to navigate the remote working arrangement and even multiply our productivity.

        To encourage more companies to join us on our journey and share our experience with our clients and others, we have compiled a comprehensive remote working guidebook which details the important considerations from both employee and management’s opinion.

        Some of the areas covered, together with key take-aways and tips, include:

        • Navigating hybrid work
        • Organising time
        • Managing distractions
        • Juggling work and family
        • Supporting mental wellbeing
        • Maintaining physical health

        Do take a read and download our Remote Working Guidebook today to capitalise on our experience and lessons learned.

        We hope that your journey into hybrid working will be a pleasant and favourable one like ours

        DOWNLOAD REMOTE WORKING GUIDE

        Juggling with family and work

        Juggling with family and work

        Maintaining physical health

        Maintaining physical health

        Navigating hybrid workforce

        Navigating hybrid workforce

        Organising time

        Organising time

        Supporting mental wellbeing

        Maintaining physical health

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        Singapore 2022 Budget

        Singapore 2022 Budget

        Singapore 2022 Budget

        boardroomsuperadmin

        The 2022 Singapore Budget revealed a number of key initiatives that revolved around investing in new capabilities, renewing & strengthening social compact, advancing green transition, and building a fairer and more resilient tax system. As always, there will be tax planning implications for your business. We’ve distilled down the main changes that you’ll need to be aware of in order to maximise the benefits for your company.

        You can download the full Singapore Budget 2022 Report below to understand the implications on your corporate tax planning.

        If you have any questions relating to any of the information contained in this report, please contact our tax advisors via email or call us at +65 6230 9788.

        DOWNLOAD THE FULL SINGAPORE BUDGET 2022 REPORT

        Corporate Income Tax

        Corporate Income Tax

        GST rate increase delay

        GST rate increase delay

        Enhanced financing support for business

        Financial support for business

        Investing in Digital Capabilities

        Investing in digital capabilities

        Property Tax

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        Considering online company incorporation in Singapore?

        1. online company incorporation Singapore

        Considering online company incorporation in Singapore?

        boardroomsuperadmin

        Is it best to use online company incorporation services in Singapore?

        Singapore consistently ranks as one of the best places in the world to do business because of its strategic central location, attractive tax structure, highly competitive economy, and political stability.

        Therefore, it’s unsurprising that the city is also a leading global start-up hub. As the number of new start-ups has grown, online company incorporation services in Singapore have increased.

        While these service providers offer speed and convenience for straightforward setups, businesses with more complex structures will benefit from engaging an expert incorporation services provider.

        What are company incorporation services?

        The process and requirements for company incorporation in Singapore may vary depending on factors such as the type of company, the nationality of the directors and shareholders, and the nature of the business activities.

        After sorting out these factors, new business owners would need to fulfil several requirements, such as preparing the company constitution, filling in the ACRA BizFile, providing a local registered office address and more.

        The complex process can make it challenging for new business owners to embark on their entrepreneurial journey. This is where company incorporation services play a crucial role in simplifying the process and ensuring compliance with legal requirements. By leveraging the expertise of professionals well-versed in company registration procedures, entrepreneurs can establish their companies in Singapore smoothly and seamlessly.

        What do ‘self-serve’ online incorporation services offer?

        Many online incorporation companies have appeared in recent years. They usually offer ‘self-serve’ incorporation model services. Essentially, they take care of the basic company incorporation paperwork and administration for you, including:

        • checking and reserving a company name;
        • preparing registration forms (based on information that you provide through online forms);
        • filing with the Accounting and Corporate Regulatory Authority (ACRA);
        • drafting the company constitution; and
        • preparing the corporate compliance kit (share certificates and registers).

        Incorporating online is a modern trend offering speed and convenience. For example, local businesses can be incorporated within three hours using the ‘self-serve’ method. As a no-frills service, it’s an attractive, affordable option for companies with simple business structures.

        However, there are some pitfalls to be aware of when incorporating your business online. Typically, online incorporation services provider do not provide expert advice and guidance on how to set up an ideal business structure while ensuring your new entity meets its regulatory requirements. Your company may risk increased costs and non-compliance as a result of:

        • selecting the wrong business structure, which has significant long-term implications for tax and personal liability obligations;
        • overlooking important local statutory requirements such as obtaining work permits; and
        • missing out on the valuable corporate tax incentives available in Singapore.
        risk of incorporate business online

        Why engage an expert incorporation service provider?

        There’s a lot more to incorporation than paperwork. While the ‘self-serve’ model takes care of the simple administrative aspects of business registration, it doesn’t optimise your company setup for ongoing growth and profitability.

        Unlike the majority of online incorporation service providers, professional services firms like BoardRoom focus on the bigger picture for your business. In addition to taking care of the business registration paperwork for you, our team of certified professionals can assist you with all aspects of incorporation, including:

        • tailoring the ideal setup and business structure for your company to minimise tax and personal liability obligations;
        • flagging any potential compliance risk oversights;
        • applying for any relevant tax incentives;
        • providing advice on and applying for work permits, residency passes, dependant passes and permanent residency;
        • establishing an efficient, automated payroll process and accounting system for your company; and
        • providing a nominee director, a company secretary or a local registered office, where required, to meet your statutory incorporation requirements.

        Which incorporation service is right for your company?

        Larger companies or those with complex structures are more likely to benefit from working with an expert incorporation service provider such as BoardRoom. Our team of incorporation professionals can guide your company on the most suitable setup and ensure that all compliance requirements are taken care of.

        Using the ‘self-serve’ option may be more appropriate for smaller businesses, particularly those with a limited budget. Additionally, online incorporation can be done relatively quickly when company structures are less complex because the process is more straightforward. For example, you could save a good deal of money if you complete the company incorporation process yourself if you are:

        • a Singaporean citizen wanting to set up your own business; and
        • the only shareholder and do not intend to add more shareholders.

        However, your needs will be very different if you are part of a foreign company looking to enter into the Singaporean market, especially if:

        • you already have several entities in other countries; or
        • you are part of a consortium of businesses looking to incorporate.

        In these cases, your organisation will likely need expert guidance on the best way to set up and structure your new company in Singapore.

        online incorporation services

        Set up your company for long-term success with our incorporation experts

        Online incorporation using the ‘self-serve’ model is a good starting point. However, to set yourself up for success long term, it’s worthwhile investing in a more sustainable and holistic approach that leverages expert knowledge.

        From commencement to completion, BoardRoom’s team of experienced, certified professionals can guide you through incorporation so it’s done correctly for your type of business.

        For over 50 years, we have helped businesses like yours thrive by using our company setup, incorporation, and company secretarial services.

        Speak to one of our incorporation experts today to find out how we could take your business further, faster.

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        How to Start a Business in Singapore

        how to start a business in Singapore

        How to Start a Business in Singapore

        boardroomsuperadmin

        How to Start a Business in Singapore

        Thinking of starting a business in Singapore? You’re not alone. As the legal landscape in Hong Kong continues to evolve, many companies are choosing to set up second headquarters in Singapore. And it’s easy to see why when the country is:

        • consistently rated by the World Bank as the best country in Asia to do business and the second best nation in the world to do business;
        • ranked first in the world for political and operational stability in the Global Innovation Index 2020; and
        • ranked first in the Asia Pacific (APAC) region and fifth in the world for economic competitiveness by the IMD World Competitiveness Yearbook 2021.

        Expanding into a new international market is exciting for any business, but it also presents its own set of significant challenges. For many executives, the first hurdle is understanding how the company formation regulations and processes work in the new jurisdiction.

        Our guide below gives you an overview of everything you need to know about how to start a business in Singapore.

        Singapore Market Profile

        Office rental pricing: Average monthly rent for grade A office space in Singapore was $SGD 9.90 per square foot for the second quarter of 2021.

        Average office space density: 10m2 per person

        Fixed internet download speed: 256.03 megabits per second in July 2021

        Mobile internet download speed: 85.93 megabits per second in July 2021

        Gross Domestic Product US$ bn: 340

        Population (million): 5.70

        Official languages: there are four official languages spoken in Singapore including:

        • English;
        • Chinese;
        • Malay; and
        • Tamil.
        what language is spoken in Singapore

        Benefits of setting up a company in Singapore

        As one of the largest business centres in Asia, Singapore offers many benefits to companies looking to establish a presence in the region, including:

        • Attractive tax structure: Singapore’s corporate tax is fixed at a competitive rate of 17% on chargeable income, whether a company is local or foreign. There are several corporate tax relief schemes available, including:

        Tax Exemption Scheme for New Start-up Companies

        Qualifying companies are given the following tax exemptions for the first three consecutive years of assessment (YAs) where the YA falls in:

        YA 2020 onwards
        • 75% exemption on the first $100,000 of normal chargeable income; and
        • A further 50% exemption on the next $100,000 of normal chargeable income.
        YA 2010–2019
        • Full exemption on the first $100,000 of normal chargeable income; and
        • A further 50% exemption on the next $200,000 of normal chargeable income

        Partial Tax Exemption for all companies

        All companies, including companies limited by guarantee, can enjoy the following tax exemption:

        YA 2020 onwards
        • 75% exemption on the first $10,000 of normal chargeable income; and
        • A further 50% exemption on the next $190,000 of normal chargeable income.
        YA 2010–2019
        • 75% tax exemption on the first $10,000 of normal chargeable income; and
        • A further 50% exemption on the next $290,000 of normal chargeable income.

        Corporate Income Tax Rebate

        Given to all companies:

        YA 2020 onwards
        • 75% exemption on the first $10,000 of normal chargeable income; and
        • A further 50% exemption on the next $190,000 of normal chargeable income.
        YA 2013–2019

        In addition, there are many corporate tax incentives available to foster economic growth within the country. Our expert tax team here at BoardRoom can advise you on the tax incentives your company may qualify for.

        Singapore does not tax capital gains on the sale of fixed assets or foreign exchange on capital transactions.

        However, companies (irrespective of tax residency) operating in Singapore are taxed on income sourced in the country and foreign income when remitted to and received in Singapore.

        But, as the Inland Revenue Authority of Singapore (IRAS) states:

        Companies that are Singapore tax residents can enjoy tax breaks on foreign income as follows:

        a. Upfront exemption or reduction in tax imposed on the foreign income, when foreign income is derived in a jurisdiction that has an Avoidance of Double Taxation Agreement (DTA) with Singapore;
        b. Tax exemption of specified foreign income such as foreign-sourced dividends, branch profits and service income; and
        c. Foreign tax credit for the taxes paid in the foreign jurisdiction against the Singapore tax payable on the same income.

        Singapore business competition
        • Highly competitive economy: Singapore is one of the most competitive economies in the world, ranking first in the Asia Pacific (APAC) region and fifth in the world for economic competitiveness by the IMD World Competitiveness Yearbook 2021.
        • No foreign ownership restrictions: 100% of the shares of incorporated companies in Singapore can be owned by foreigners or foreign companies (except for broadcasting and domestic news media). There are no export tariffs and foreign exchange controls in Singapore, but there are import tariffs on:
          • intoxicating liquors;
          • tobacco products;
          • motor vehicles;
          • petroleum products; and
          • biodiesel blends.
        • Bilingual business communication: English is widely used in Singapore, making it easier for foreign investors to establish companies within the region.

        How to establish a company in Singapore

        Here is our step-by-step guide for how to register a business in Singapore:

        01 Choose a company type

        The two most common company types for businesses operating in Singapore are:

        1. Limited Liability Company: This entity type means that a business is set up as its own legal entity. Foreign investors often prefer this type because it offers limited liability for business owners. Companies can be limited by shares or by guarantee.
        2. Foreign Company Office: Foreign companies can register in Singapore as either a representative office or a branch office. Neither option creates a separate legal entity, however, so all liability extends to the parent company.

        02 Give your company a name

        Your company must avoid choosing a name that is:

        • the same as an existing business name already approved by the Accounting and Corporate Regulatory Authority (ACRA);
        • undesirable ie., names which are vulgar, obscene or offensive; and
        • prohibited by order of the Minister for Finance.

        You can search the online business and company name register in Singapore, BizFile, to check if your preferred name is available.

        03 Set up your company structure

        Next, you need to determine the structure of your company per the following requirements:

        • Directors: a minimum of at least one person. One director needs to be a natural person (ie. an individual). Directors must be aged 18 years or older and be either:
          • a Singaporean citizen; or
          • permanent resident; or
          • a person with an Employment Pass; or
          • a person with an Entrepreneur Pass (EntrePass).

        To satisfy your local director requirements in Singapore, we provide a nominee director service.

        • Shareholders: a minimum of at least one shareholder. 100% of shares can be foreign-owned.
        • Company secretary: a sole director must not act as the company secretary. To register a company in Singapore, you must appoint a natural person who lives in Singapore as a company secretary.

        We provide expert company secretarial services so that your company can meet all of its statutory obligations in Singapore.

        • Share capital: the minimum issued capital must be at least $SGD1.
        • Registered address: must be a physical address in Singapore, not a P.O. Box. If your business does not yet have local office space, professional service firms like BoardRoom can provide your company with a registered office location.

        04 Submit company registration application

        A foreigner looking to operate a business in Singapore that is venture-backed or owns innovative technologies is eligible to apply for an EntrePass. This will allow them to submit their application online through BizFile. However, foreigners without an EntrePass should consider engaging with the services of a registered filing agent, such as BoardRoom.

        05 Make other permit and business licence applications (if applicable)

        Depending on the type of business you operate, you may need to apply for other permits and business licences. Find more information about permits and licences here.

        how to open a business in singapore as a foreigner

        How to successfully open a business in Singapore

        While it can be complex, the process of opening a business in Singapore as a foreigner doesn’t have to be difficult. Our team of company incorporation experts at BoardRoom can guide you through every step of the incorporation journey to make it as smooth and seamless as possible.

        Not only can our team help you incorporate with ease, but we can also take care of your company secretarial needs.

        Speak to one of our specialists today to get started in setting up your business in Singapore.

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