Setting up a company

[amam82]

Hi all money expert ppl over here and i have some doubts over here.

I intent to set up a trading company, basically selling anything however that is not the point. I want to employ my family members as employees and then can i apply for the PICC or any spring subsides? Of course my company will have accounts proving is profiting but below the taxable amount.

Reason is i need to contribute cash to my parents CPF in order to service their current housing loan, parents CPF running super low. So in order not to just top up naively can i the above method works? At least i can still benefit from the SME start up scheme.

pls dont judge me, SG is really very costly in everything therefore really need to plan on how to maximize my money.

I need some advice over here!

 

[kebinu]

No phantom worker allowed.

Your parents will be doing some real work for you.

Remember this.

 

[focus1974]

Remember this golden nugget ...
"谁的钱都可以骗，政府的钱千万不要骗。"

 

[ramdick]

Know people doing what you asked & they did not get caught. But doesn't mean is legal.

 

[amam82]

Alright guys i think depends on how we look at things right. Definition of working area is very wide, so i believe is not cheating.

 

[Shiny Things]

pls dont judge me, SG is really very costly in everything therefore really need to plan on how to maximize my money.

"Oh Singapore is a very expensive place to live therefore it's okay for me to defraud the government".

Sod off.

 

[huhster]

Spring have many grants

Like the rehiring of older workers, pic (3 cpf paying staff), ICV, iSprint

 

[lee_tired_sheep]

Alright guys i think depends on how we look at things right. Definition of working area is very wide, so i believe is not cheating.

You think you can prove it in a court of law then go ahead

 

[amam82]

As long as i fulfill the MOM laws im not bypassing or breaking the law right?

 

[sinkie4life]

As long as i fulfill the MOM laws im not bypassing or breaking the law right?

Simple question here. Will your 3 family members be genuinely working for you company?

ie They each have their own designation, responsibilities and job scope.

If yes, go ahead.

If no, then you are defrauding the government.

No grey areas here. If you think that the "definition of working area is very wide, so i believe is not cheating", then good luck to you. If you can think of an idea to bypass the requirements, the government would already have thought of it.

Cheers.

 

[Keverus]

trading company?!!

 

[JK Market]

firstly even if is all legit, why dont you consider voluntarily topping up to cpf?

not sure if it works this way.

but if you contribute to cpf via salary, of the eg 1,000 your company has to fork out a % as well which will ultimately be your own money.

dont see why starting up a company to contribute to your parents cpf works/helps in anyway. -_-

 

[Tony Sim]

I am not sure if it is a good idea... ...

Have you considered the opportunity costs for your parents? By "working" for you and receiving "pay" from you, they may lose out on other benefits from the government such as GST vouchers, S&CC rebates and Medisave top ups.

There are also opportunity costs for you as well. When they want to sell their flat, the sales proceed will also go back to their CPF accounts, and not in the form of cash which you could use for other investment purposes.

 

[sunzoner]

Hi all money expert ppl over here and i have some doubts over here.

I intent to set up a trading company, basically selling anything however that is not the point. I want to employ my family members as employees and then can i apply for the PICC or any spring subsides? Of course my company will have accounts proving is profiting but below the taxable amount.

Reason is i need to contribute cash to my parents CPF in order to service their current housing loan, parents CPF running super low. So in order not to just top up naively can i the above method works? At least i can still benefit from the SME start up scheme.

pls dont judge me, SG is really very costly in everything therefore really need to plan on how to maximize my money.

I need some advice over here!

Let assume you are doing it legally.

What benefits does it brings to you?

The money that goes into their CPF is theirs. You cant claim it back.
No tax advantage since your company maybe no sales.

Unless you are a consultant doing some consultancy. Then your income goes into the company as revenue and the salaries to your parents are tax deductable.

Otherwise, why waste the money setting up the company?

 

[sinkie4life]

Let assume you are doing it legally.

What benefits does it brings to you?

The money that goes into their CPF is theirs. You cant claim it back.
No tax advantage since your company maybe no sales.

Unless you are a consultant doing some consultancy. Then your income goes into the company as revenue and the salaries to your parents are tax deductable.

Otherwise, why waste the money setting up the company?

I think he specifically meant PIC Bonus and ICV.

Lots of people are exploiting this right now.

 

[sunzoner]

I think he specifically meant PIC Bonus and ICV.

Lots of people are exploiting this right now.

If he is a new startup, trying to be legit (I assumed in my post), the two schemes wouldnt help him do much.

The two schemes requires money to be spent. So unless he goes under-table, the two schemes dont help him at all.

ICV:
SPRING - Innovation & Capability Voucher (ICV)

Solutions
For implementation of simple solutions, each SME can apply up to a maximum of two vouchers to implement solutions out of the available eight vouchers for each SME. For this, SMEs may apply directly with SPRING to support the solutions, on a reimbursement basis. The reimbursement will be made directly to the SME. All purchases must be made only after the indicated solutions/ items have been approved in the application.

The supportable cost categories include :

Equipment & hardware
Technical solutions
Professional services
Design & renovation

PIC Bonus:
IRAS: Six Qualifying Activities under PIC

The productivity improvement activities covered under PIC are:

Acquisition and leasing of PIC Information Technology (IT) and Automation Equipment;
Training of employees;
Acquisition and In-licensing of Intellectual Property Rights;
Registration of patents, trademarks, designs and plant varieties;
Research and development activities; and
Design projects approved by DesignSingapore Council.

I would think a better choice would be to check if he can get some funds to offset part of the salary cost for his parents...

 

[NY_Ang]

for setting up a company you need to have a company secretary of certain qualified background too right? Can the parents just stand in just lke that?