Stone Prime Advisory LLP

Stone Prime Advisory LLP Contact information, map and directions, contact form, opening hours, services, ratings, photos, videos and announcements from Stone Prime Advisory LLP, Business service, 7 Temasek Boulevard, Suntec Tower One, Level 12, Singapore.

Stone Prime offers the comprehensive services and professional capabilities necessary to help the business solve the most complex issues of the organization and provide the most suitable services and advisories for the clients.

Planning to start your own business? This is the FIRST thing you should know when incorporating a new company.In the mid...
01/09/2020

Planning to start your own business? This is the FIRST thing you should know when incorporating a new company.

In the midst of every crisis, lies great opportunities, said Albert Einstein. Despite the dismal employment situation, there has seen more and more new, energising, adventurous entrepreneurs springing up in all walks of business. However, many of those who are already excited about setting up a company for business, often overlooked one of the most important matters they will have to look out for, before even deciding on their company name, i.e., a professional and reliable Corporate Secretary.

So who (or what) is the Corporate Secretary and how important (or powerful) is this person ?

A Corporate Secretary is a statutory officer under Companies Act (Chapter 50) where every company must have at least one, of whom will be charge of the administration, not as those of company's management but organising and holding annual meetings, filing all statutory notices at ACRA, maintaining company's financial records, etc. Thus, the Corporate Secretary in the modern world, is considered to have the POWER of ostensible authority to enter into a contract ON BEHALF of the company, as long as the contract involves the ADMINISTRATION of the company.

Therefore, it is the utmost importance for every business owner to have a Corporate Secretary who is professionally competent to act for the company's best interests.

It is time to ask yourself a question one more time, company name comes first, or a better Corporate Secretary?

Get started with Messaging us today to find out more.

Visit our website www.stoneprime.com.sg or just simply email to [email protected] to explore how our team of professionals will help your business.

[Top 3 Common Mistakes in Business Acquisitions]The purpose of merger and acquisition (M&A) is to seek business synergy ...
17/08/2020

[Top 3 Common Mistakes in Business Acquisitions]

The purpose of merger and acquisition (M&A) is to seek business synergy and drive growth for sustainability. However, unlike public companies whose value can be measured by open market information, buyers who are eyeing at private companies take-over usually tend to make the following mistakes that eventually lead to overvaluation, poisonous acquisition and business trap:
1. Turn a blind eye to non-financial perspectives.
2. Reluctance to engage external professionals for due diligence, just because of "face" or "friendliness".
3. Put too little trust on target company's accountants (Yes, it's not a typo error).

Whether you are thinking of merger and acquisition, or already in the middle of deal talks, it is always not too late to take a walk with our professional consultants along the way for a better deal.

[TAX] Even the most experienced accountant might overlook THIS. Goods and Services Tax (GST) is paid whenever customers ...
10/08/2020

[TAX] Even the most experienced accountant might overlook THIS.

Goods and Services Tax (GST) is paid whenever customers buy taxable goods or services from GST-registered businesses.

The most frequently encountered type of taxable supply by companies or entities is usually the "Standard Rate Supply" where GST is charged at the prevailing rate of 7% by GST-registered businesses on all sales of goods and services made in Singapore.

However, among those commonly mentioned types of GST, one is always overlooked, the "Deemed Supply", that many of us might not even heard about.

Tax on Deemed Supply arises where the goods are sometimes permanently disposed of, transferred, or applied to non-business use, such as free gifts to customers, free food & beverage to employees, etc. Despite there is no consideration received, for GST purposes, supplies are considered to be made and hence such supplies are considered as “deemed supplies. The rationale behind this is that if supplies were not deemed, the goods are being enjoyed by the recipient tax free, while input tax incurred on the purchase of the goods would have been claimed by the business. In addition, the open market value (OMV) is therefore in this picture to evaluate if there is any necessity to declare output tax arising from deemed supply, within the framework of GST Act.

By the way, do you know what is the difference between "Zero Rate Supply" and "Exempt Supply"? When should you declare the "Out-of-Scope Supply"?

By now you should have decided to take a look at your previous GST submission for better compliance, or to book an appointment with us for tax review.

[BUSINESS] That's WHY valuing from non-financials is more important for M&A in private entities.Over the last few decade...
03/08/2020

[BUSINESS] That's WHY valuing from non-financials is more important for M&A in private entities.

Over the last few decades, there are not so many but just a handful of successful mergers and acquisitions (M&A) in the business world. After all, Great success is always remembered whilst huge failure might be always forgotten.

Situation doesn't get any better in private business either. Many failed M&As of private business usually have something in common, which is neglecting the non-financial factors:

1. The key personnel at MID-level or operation of target company. People often forget the fact that, it is the personnel at operation level that help hold the fortress and build up the business.
2. The average age of the top management staff. If most of the key executives of the target company are reaching their age of 50's, (no offense), you will have to prepare for bulk replacement after taking over or merge.
3. Prior litigation record of the company, its key officers and members. It is worth a check to better understand the usual business practice.
4. The suppliers, vendors, customers and other business counter-parties. Without reviewing those, you might end up with buying a hollow shell.

To find out more about the valuation of private companies, just message us and start speaking to our professionals today.

[BUSINESS] How DIFFERENT is a Joint Venture from a Partnership?A JV is useful form of business entity if the parties wis...
31/07/2020

[BUSINESS] How DIFFERENT is a Joint Venture from a Partnership?

A JV is useful form of business entity if the parties wish to pool their resources but do not wish to bear some of the more onerous responsibilities associated with a partnership.
Joint Venture (JV) and Partnership are both unincorporated business entities that do not have separate legal personality, where the law does not distinguish between the person who establish the business and the business itself, but with main difference from a partnership:
1. A JV does not have joint liability whilst a partnership has joint and several liability. In another word, each venturer serves his own obligations.
2. In a partnership, each partner acts as an agent of the other partner and can bind the partnership in contracts with third parties. A joint venture is usually not an agent of the other venturers and each has limited authority to act on behalf of the JV.
3. A JV may allow a venturer to transfer his interest in the venture to a third party without the approval of the other venturers.

However, a JV could be considered, at law, as a partnership if the JV is intended to carry on business that is on a continual basis. Here is an interesting reading for reference, Canadian Pacific (Bermuda) Ltd v Nederkoorn Pte Ltd (1998).

Apart from the above, what would be the difference of tax implication between a JV and a partnership? What is Limited Liability Partnership (LLP) for? What is financial effects among a JV, a Partnership and a LLP?

Message us today for a better and more professional answer.

[BUSINESS] This is the TOP Priority when starting up your businessIn the midst of every crisis, lies great opportunities...
29/07/2020

[BUSINESS] This is the TOP Priority when starting up your business

In the midst of every crisis, lies great opportunities, said Albert Einstein. Despite the dismal employment situation, there has seen more and more new, energising, adventurous entrepreneurs springing up in all walks of business. However, many of those who are already excited about setting up a company for business, often overlooked one of the most important matters they will have to look out for, before even deciding on their company name, i.e., the Corporate Secretary.

The corporate secretaryship is a statutory office under Companies Act (Chapter 50) where every company must have at least one corporate secretary, of whom must be natural persons residing in Singapore. In addition, where there is only one director in a company, this person cannot also be designated as the corporate secretary.

So, how important or powerful is this corporate secretary?

Besides the routine responsibilities of which the information is readily available online, a corporate secretary is the OFFICER who is charge of the administration, not as those of company's management but organising and holding annual meetings, filing all statutory notices at ACRA, maintaining company's financial records, etc. Thus, the corporate secretary in the modern world, is considered to have the POWER of ostensible authority to enter into a contract ON BEHALF of the company, as long as the contract involves the ADMINISTRATION of the company.

Therefore, it is the utmost importance for every business owner to have a Corporate Secretary who is professionally competent to act for the company's best interests.

It is time to ask yourself a question one more time, company name comes first, or a better Corporate Secretary?

[5 Things You Need to Know before being a Nominee Director]The majority of incorporated entities in Singapore are Compan...
27/07/2020

[5 Things You Need to Know before being a Nominee Director]

The majority of incorporated entities in Singapore are Companies and all Singapore companies are required to have at least one local director under the Companies Act (Chapter 50). As a result, the term/appointment of "nominee director" has come to the stage that help many foreign investors set up a permanent establishment to carry out business in Singapore.
However, individuals who are to accept the appointment of a nominee director (ND) might be always ignorant, oblivious or even naive about the following:
1. The ND falls within the definition of "director" in the Companies Act and has all the obligation of a director.
2. The ND still owes statutory duties to the company and its member(s) prescribed under Companies Act.
3. The ND might be personally exposed to certain liabilities arising from the company or business.
4. An indemnity clause in ND agreement might not repudiate the duties or obligations of being one.
5. An individual who is officially appointed a ND will be considered, at law, as a director even if he has compromised himself by allowing others to control him.

Therefore, read this before pleasantly accept the appointment.

Alternatively, you shall consider engaging our service for better advice.

[ACCOUNTING] How WELL are you ready for the new accounting standard SFRS 16?With effect from 1 January 2020, the impleme...
24/07/2020

[ACCOUNTING] How WELL are you ready for the new accounting standard SFRS 16?

With effect from 1 January 2020, the implementation of Singapore financial reporting standard SFRS-16 will officially kick start and it is expected to bring a new wave of accounting review and adjustments to most of industries. What is this SFRS-16 and why is it so critical?

This SFRS-16 is the accounting for LEASES, which evolved from prior standard FRS-17 that had been in place for more than a decade. The main purpose is to ensure that the financial statements provide faithfully representations in relation to leasing transactions, giving a basis for users of financial statements to assess the effect that leases have on the financial position, financial performance and cash flows of an entity. In another word, it is to record and reflect the current and future financial impacts arising from the leases to the business on the book so as to give the users certain level of transparency for long term decisions. Meanwhile, it is to minimise the manipulations of frequently used techniques called "off-balance-sheet" accounting.

Such new adoption of SFRS-16 will soon agitate most of the business in Singapore, because it relates to the reclassification and accounting adjustments of major expenses, depending on the industry such as:
1. Rental expenses (retail)
2. Truck rental (logistics)
3. Aircraft (airline and international logistics)
4. Cars (private-hire taxi)
5. Enery & Power (infocomm and utilities)

The adoption of SFRS-16 will give a rise to the profitability by off-loading the expenses from the P&L statement. However, it leads to a more complexed situation where the company has to recognise the tax difference into the accounts, between the accounting standard and tax law. Furthermore, it will provoke more sophisticated accounting measures, namely the nominal interest expenses, leasing liability, amortisation of the leasing assets, etc.

Therefore, it is time to review your current accounting policies before it hits you from nowhere. Alternatively, seek advice from us and let the professionals do the necessary for you and your business.

How to account PROFESSIONALLY for government grants during Covid-19 pandemic?The government has so far announced multipl...
22/07/2020

How to account PROFESSIONALLY for government grants during Covid-19 pandemic?

The government has so far announced multiple support schemes, namely the salary support to help retain the employments. With noticeable tranches of cash flow into the bank account, it is important for you to ensure proper bookkeeping is done that strikes the balance between the business efficiency and accounting professionalism.
In alignment with the Singapore Financial Report Standards (SFRS)-20, the grant income received can be presented either (1) separately as grant income or under “other income”; or (2) deducted against the salary costs.
It is recommendable to present such grant income under "other income" for a greater transparency, instead of as a deduction against the salary costs. Disclosure requirements should also be considered.

But what the tax implication will be? Which is the better way to achieve the expectations from shareholders or investors?

Make an appointment TODAY with our team of professional accountants to find out more.

Be warned! Top 4 scenarios where you will be personally responsible for company's liabilities:A company has separate leg...
21/07/2020

Be warned! Top 4 scenarios where you will be personally responsible for company's liabilities:

A company has separate legal personality apart from its members, normally shareholders. However, in the following situations, the court might go behind the said corporate personality and thereafter impose liability on its members, i.e. "Lifting the corporate veil":

1. Defaulting debts which were knowingly created by a company's officer who at that time had no reasonable or probable expectation that such debt could be paid.
2. The business is carried on with intention to defraud and for other fraudulent purpose.
3. The company is used to evade legal liability of its members.
4. The company or a group of company is used as a facade and sham by a common member to achieve his goals, e.g. soliciting money by using the form of company for personal gain.

So the question is, are you really sure of getting away from company's debts?

Address

7 Temasek Boulevard, Suntec Tower One, Level 12
Singapore
038987

Opening Hours

Monday 10:00 - 19:00
Tuesday 10:00 - 19:00
Wednesday 10:00 - 19:00
Thursday 10:00 - 19:00
Friday 10:00 - 19:00
Saturday 10:00 - 12:30

Telephone

+6562571040

Website

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