Singapore Companies Act Dividend Payment: Can Company Secretary Get Dividends in the Country?
So, can a company secretary get dividends in Singapore? To answer this, first, you should understand what dividend is. It is money paid by a company to its shareholders after making a profit. And as we stated in a previous article that a secretary can be a shareholder in Singapore, a secretary could get dividends in Singapore if they own a share in the firm.
Can a Company Secretary Get Dividends in Singapore: What Actually Are Dividends?
Say that you run a private limited company. Let us say that you made some profit. Now you have two options. One is to reinvest the profit in the company, another to divide the money to your shareholders. The money that you allocate to your shareholders is called dividends. Singapore has a single- tier tax system, so you don’t need to pay taxes for dividends, but make sure that dividends can only be made payable if your company made profits. This also means setting off the last years loses and tax obligations. Thus, the calculation for amounts for dividend usually involves ‘net profit.’
The dividend amount for each shareholder depends on the shares of the individual shareholder. You have to secure consent from your shareholders to distribute a dividend; sometimes, they would rather you spend the money on upgrading the business. Whether or not he/she has a share in the company, the secretary helps you while distributing dividends; first is by providing you their opinion on whether you should invest or pay, and another by updating the registers. Well, updating the register of the information of shareholders is one of the responsibilities of the secretary, and there are many more. Know about that in the secretarial duties in Singapore.
Secretaries and Shareholders: The Main Differences
Being a company secretary and being shareholders are entirely different positions. A secretary works in the company, while a shareholder invests in the company. These two devotions have different backgrounds, so there is nothing that stops the secretary from wanting to finance the company. It might be true that a secretary has various responsibilities in the company, but the funds they invest in the company don’t affect the work quality at all. Thus, if a person has two different roles of a secretary and a shareholder at the same time, they can get their secretary salary, as well as the dividends amount in Singapore.
Our Team of Secretaries Deeply Acknowledge Their Limitations
“Can Company Secretary Get Dividends In Singapore?”; this question can easily be answered when you have a clear concept of what dividends are. Or, in some cases, this question might be confusing individuals because they don’t know what a company secretary is in the first place. This can be a confusing inquiry at first, but you find its nothing once you get a clear grasp of the concept.
Looking for affordable corporate secretarial services in Singapore? Contact us; our firm has the best secretaries working over the biggest companies in Singapore. Here is more about our services.
Chai Chung Hoong, Account Manager
Chai Chung Hoong will assist you in all accounting related services, and help your company in digital transformation.
Contact Us