Business & Corporate Finance
Best For
Entrepreneurs
Focus
Financial Structure
Key Benefit
Optimized Cash Flow
Proper business financial structuring separates personal and business finances, optimizes cash flow, and positions your company for growth or exit. This includes choosing the right business entity, setting up proper accounting, and managing the interface between business and personal finances.
Business financial structuring is fundamental to building a successful and sustainable business in Singapore. It involves making strategic decisions about how your business is organized legally, how finances flow between personal and business accounts, and how you optimize for both tax efficiency and operational flexibility.
Singapore offers various business structures: Sole Proprietorship, Partnership, LLP, and Private Limited Company. Each has different liability protection, tax treatment, and compliance requirements. Private Limited is most common for significant businesses due to limited liability protection.
Simplest structure, but no liability protection.
Most common for significant businesses.
For multiple owners with shared responsibility.
Sole Prop is simplest but no liability protection. Pte Ltd offers protection but requires more compliance.
Salary is tax-deductible expense, dividend is not. But CPF only on salary. Optimize for your situation.
Banks often require personal guarantees for business loans. Understand your personal exposure.
Mixing finances creates tax issues, complicates business valuation, and makes loan applications difficult.
Unclear separation between business and personal cash flow leads to poor financial decision-making.
Wrong entity type for your needs can expose you to unnecessary liability or tax inefficiency.
Not knowing the optimal balance between salary and dividends affects both tax efficiency and CPF contributions.
Poor financial management and structure limits your ability to scale, secure funding, or plan for exit.
Review and optimize your business structure for liability protection, tax efficiency, and operational needs.
Establish clear separation and management of cash flow between business and personal finances.
Optimize the balance between salary and dividend for tax efficiency and CPF contributions.
Set up proper accounting, controls, and management reporting systems.
Financial planning to support business growth, investment, or eventual exit strategy.
Consider when liability risk is significant, you want to bring investors, or tax optimization makes sense. Consult with an accountant to evaluate the costs and benefits for your specific situation.
Enough for CPF contributions and personal needs, but not so much that company cash flow suffers. Balance tax efficiency with personal financial stability. A common approach is to pay enough to maximize CPF contributions while keeping sufficient cash in the business.
Absolutely. Mixed finances create tax issues, complicate business valuation, and make loan applications difficult. Use separate bank accounts and credit cards from day one.
Get a business finance review and optimize your business structure, cash flow, and financial systems.
Every business decision impacts your overall financial strategy