term

A collection of 77 posts

KPI

What is a Key Performance Indicator?KPI stands for Key Performance Indicator. It can measure the performance of the whole company or one of its business activities. KPIs are also used to evaluate

4 min read

Horizontal Merger

A horizontal merger is a merger of two companies that operate in the same industry. Let’s define how horizontal mergers work, discover why competitors could want to merge and compare a horizontal and a vertical merger.

3 min read

Ordinary Share

Ordinary shares allow shareholders to vote and to receive dividends. Let’s define the ordinary shareholders’ rights, discover ordinary shares advantage and compare them to preference shares.

3 min read

Liquidity

Liquidity is a touchstone of your company’s ability to pay its bills and debts — showing how quickly you can do this using the assets you have and whether you can do it

5 min read

Invoice

An invoice is a way to get payment from your client, for example, if you sell coffee beans to the coffee shops — you issue invoices for them to pay. Or if you have

2 min read

Billing

When you sell your goods and services, you want money for them — and bill your customers. Billing works like this: you provide a service, you issue an invoice, the customer makes the payment,

2 min read

Petty cash

Petty cash is a certain sum of money (obviously, in cash) that your business keeps at hand, in case you need to pay for some small and not expected expenses. It is better

2 min read

Working capital

Working capital, also known as net working capital or NWC is the net liquid assets of your company — which is calculated by deducting current liabilities from the current assets. How much available working

4 min read

Invoice factoring

Invoice factoring can also be referred to as accounts receivable factoring, just factoring, or sometimes accounts receivable financing. This type of financial transaction allows a business to sell its accounts receivable (invoices) to

2 min read

National insurance

National insurance or National insurance contributions (NIC) is a tax in the UK which both employees and employers pay. You must pay it if you fall under certain conditions, though, you can also

3 min read

Capital expenditure

Capital expenditure, or capital expense, or CAPEX is expenses your company incurs to generate benefit in the future. CAPEX goes in contrast with OPEX — which stands for the day-to-day costs of the company.

3 min read

Operating expenditure

Operating expenditure, operating expenses (OPEX) or manufacturing expenses are the costs that your company incurs while the main product of your business is being produced. OPEX include: MaterialsLabour costsMachineryThe energy needed to produce

2 min read

Non-executive director

A non-executive director is a person in your company who is the one on the board of directors who does not have any executive powers. This person does not take part in the

4 min read

HMRC

Her Majesty’s Revenues and Customs (HMRC) is the main tax collecting authority in the UK. It is responsible for collecting: Income TaxCorporation TaxCapital Gains TaxInheritance TaxInsurance Premium TaxStamp DutyLand and Petroleum Revenue

4 min read

Exit strategy

3 min read

XBRL

XBRL — is an acronym for the eXtensible Business Reporting Language. It is a language and a framework for standard financial reporting worldwide. In Singapore filing to ACRA must be submitted in XBRL format.

1 min read

Unaudited Report

Unaudited Report — the data a company has to table to the AGM within 6 months of its financial year end. It includes a profit and loss report, balance sheet, compliance notes and director’

1 min read

UEN

UEN — Unique Entity Number, an id of a company. A 9- or 10- digits code issued by ACRA for every business in the country. UEN is the most important characteristic of a company

1 min read

Turnover

Turnover (of assets) — sales of the company within a given period, usually a month or a year. It is often used as a synonym for revenue. A business can also have inventory turnover

1 min read

Tax Haven

Tax Haven — a country that offers little or no tax for foreign individuals. They usually provide a favorable environment for both personal and corporate tax needs and do not require citizenship to benefit

1 min read

Tax Clearance

Tax clearance — a procedure to check the tax status of a person that plans to leave Singapore. If your employee is going to stop working for you in Singapore, or transfers overseas, or

1 min read

Stakeholder

Stakeholder — a person or entity that has an interest in the positive performance of a company. An example can be shareholders: they are always stakeholders as they incorporated the business in Singapore and

1 min read

Sole Proprietorship

Sole Proprietorship — is a business set up by one individual. A disadvantage is it doesn’t provide a separate legal entity. The entrepreneur thus personally owns all the risks. For example, you’d

1 min read

Share

Share — a unit of ownership in the company. Shares give a right to company’s profit: if any is declared, a company secretary distributes it proportionally to shareholders in the form of dividends.

1 min read

Quarterly Report

Quarterly Report — a reporting standard applied by the Ministry of Finance to the public listed companies. While for private companies submitting financials annually is enough, the public ones report 4 times a year.

1 min read

Public Company

Public company — a company that trades it shares on a stock exchange. That means that anybody can buy shares of the company and that their price is determined by the market. To become

1 min read

Privacy Policy

Privacy policy — an official document registering the way your company works with users’ data. It states the ways you collect, gather, use, disclose, and manage personal data. Any company set up in Singapore

1 min read

PR

Permanent Resident — immigration status with most rights second only to being a citizen. A PR holder receives nearly all vital rights except a right to vote and hold public service and most of

1 min read

Partnership

Partnership — a business structure in Singapore formed by two to twenty partners. There are several partnership types: General Partnership, Limited Partnership, or Limited Liability Partnership. They vary in terms of liability, agreements between

1 min read

Ordinary Share

Ordinary share — a type of share that gives its owner one vote and a proportional claim to company profit (if any) equal to other ordinary shareholders. If there are preference shares in the

1 min read

Offshore Account

Offshore account — a business open abroad to benefit from better conditions, such as tax reliefs, ease of opening and managing business, or lower costs. Often used with a negative connotation when describing illegal

1 min read

NRIC

NRIC — National registration identity card in Singapore. Every Singapore citizen and Permanent resident receives an NRIC. It has a unique code assigned to the document that is required among other things for online

1 min read

Nominee Director

Nominee Director (resident director) — a Singapore resident that acts as a Director of the company on paper without interfering with your decisions. A company set up in Singaporecan have as many directors as

1 min read

MTI

Ministry of Trade and Industry (MTI) — a government body in charge of two very large sectors of the economy, MTI has divisions dedicated to different sectors (e.g. Energy Division), international bodies (ASEAN

1 min read

MOM

Ministry of Manpower (MOM) — a government body in charge of work passes, employment practices, workplace safety and health, and statistics on labor market. How do I apply for Employment Pass?It takes MOM

1 min read

MOF

Ministry of Finance (MOF) — a government body in charge of financial regulation, country budget, and supporting business environment. ACRA and IRAS, two bodies overseeing companies set up in Singapore, are both under the

1 min read

MINLAW

Ministry of Law (MINLAW) — a government body in charge of the legal system. It also includes statutory boards in charge of Intellectual Property and Land Authority. If you are a foreigner setting up

1 min read

Micro Enterprise

Micro Enterprise — a small company that has 10 or fewer employees. Micro Enterprises are eligible for SME Micro Loans from Enterprise Singapore. It provides up to S$100,000 for daily operations or

1 min read

MHA

Ministry of Home Affairs (MHA) — a government body in charge of national security, public safety, and immigration. While MOM issues visas and processes applications, MHA grants PR status and deals with illegal immigration.

1 min read

MFA

Ministry of Foreign Affairs (MFA) — a government body in charge of diplomatic relations with other nations. The Ministry of Foreign Affairs of Singapore manages the country’s diplomatic relations with 188 countries which

1 min read

Margin

Margin — the difference between the cost of your product and its selling price, or ration of profit to revenue. In financials, a margin is the money borrowed from a brokerage to buy securities.

1 min read

LLP

Limited Liability Partnership (LLP) — a business structure in Singapore that creates a separate legal entity. It requires fewer compliance activities than a private limited company, for example, there’s no need to file

1 min read

LLC

Limited Liability Company — Pte Ltd or LLC is an exempt private company limited by shares. It is the most common choice for entrepreneurs in Singapore. A big advantage is it provides a legal

1 min read

Limited Partnership

Limited Partnership — a business structure in Singapore that provides partners with different liabilities: one is a general partner and the other is limited (or dormant) partner. The role of the limited partner is

1 min read

Limited Liability

Limited liability — a method of company organization that reduces the financial liability of the owner to a fixed amount, usually equal to his investment in the company. It protects the owner from risking

1 min read

ISCA

Institute of Singapore Chartered Accountants (ISCA) — the professional association for Accountants. You must be a member of ISCA in order to practice accounting in Singapore. To become a member, you should pass the

1 min read

Income Tax

Income Tax — a tax on personal earnings for individuals, income tax rate in Singapore is progressive starting at 0%. The maximum is 22% for yearly income over S$320,000. Foreigners pay the

1 min read

IMDA

Info-Сommunications Media Development Authority (IMDA) — a government agency dedicated to supporting and developing infocomm and media field. They are also in charge of regulating the sector, which they aim to do in a

1 min read

GST

Goods and Services Tax — a value added tax. GST rate in Singapore is 7%. It is applied to most of the goods and services exchanged in Singapore. The business is only required to go through GST registration and pay the tax after its yearly turnover exceeds S$1 million.

1 min read

General Partnership

General Partnership — a business structure in Singapore that has more than one owner. A general Partnership does not form a separate legal entity, so the partners’ liability is unlimited. The partners are each

1 min read

Messenger
We’re using cookies! What does it mean?