facebookPlanning to start a company and I'm wondering if we don't earn any profit, do we still need to pay any taxes or fees as a company? - Seedly

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Anonymous

01 Mar 2022

Career

Planning to start a company and I'm wondering if we don't earn any profit, do we still need to pay any taxes or fees as a company?

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If you don't have any chargeable income, you don't need to pay corporate tax. You can carry forward losses, which means your taxable income in future years will be reduced by your losses.

Typical annual fees:

  1. ACRA's annual filing fees = $60/year
  2. Corporate secretary annual fee = $300/year to $500/year onwards, depending on your corporate secretary
  3. Accounting = $800/year to $5,000/year for most small businesses, higher for larger businesses with more transactions
  4. Any licenses required for your specific business. For instance, food shop licenses, liquor licenses, etc.

If you're starting a new business, you can save around $20,000+ in corporate taxes annually, for your first 3 years of operations, with the Start-Up Exemption Scheme. You'll be automatically enrolled in the scheme when you start a new company. Here's a guide on that: https://www.providecover.com/how-to-save-up-to-...

Here's a guide on how to start a Pte Ltd: https://www.providecover.com/best-guide-to-star...

Don't forget to protect your new company with SME Business Insurance.

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