Do you want to start a business in Singapore and don’t know how to go about it?
Well, here are things you should know:
Singapore is one of the most competitive countries in Asia widely because of its robust investments.
You could say it’s the world’s profound place to trade. In case you are an innovator, you shouldn’t worry about your ideas getting stolen. There is a protection law for intellectual property.
To start a business in Singapore, just like in any other country, is procedural. Similarly, there are things an entrepreneur/investor should consider before breaking into the bank to start a business in Singapore.
Ready? Let’s dig in.
Know What Kind of Business to Start
The first step is to determine what business structure is suitable for you. Although sole proprietorship may sound fascinating, you may want to consider the fact that most businesses in Singapore are private limited organizations.
Moreover, it has its fair share of challenges, for instance; as a single entity, it may mean that you are accountable for all business liabilities plus risks.
Therefore, it’s much better to register as a company to avoid a worst-case scenario where you would have to sell your assets to settle for the losses and debts of the business.
Have a Plan
To turn your innovative idea into reality, you will need a plan. It should be a well-structured road map illustrating the primary goals of your organization, monetary requirements, and marketing strategies.
Get Ready Financially
When preparing to start a business, you must set aside capital. If the available funds are not enough, you may need boosting. In Singapore, several schemes were started to help new ventures, for instance, Spring Singapore.
If you get in touch with them and they happen to like your business idea, you may be lucky enough to get funding to support your business.
You might also consider the following schemes;
- Sector-specific accelerator program
- Business Angel Scheme
Schemes like these encourage innovation while helping the business to expand globally.
After investing in your business, the next step is to establish a relationship with other entrepreneurs for mutual benefits.
Networking gives you a chance to interact with other professionals in your industry.
On the one hand, you can join social platforms, exhibitions, and seminars to learn more. And on the other hand, you can join the associations of trade and industry immediately.
Start an Office Space
Although work from home has gained popularity, it works much better for companies with less than three personnel. Commercial spaces are expensive in Singapore.
However, despite having access to a pool of talented employees, the space is pretty competitive.
Having a plan on how many employees you should hire helps estimate the expenses you are to incur in terms of space and employee needs.
Steps to Start a Business in Singapore
1. Registration of Your Company
Company registration is the first step to starting a business in Singapore. Register the name of your business with the Singapore Accounting and Corporate Regulatory Authority (ACRA).
Registration is the key to getting your business up and running before hiring employees.
Once you register and get the necessary permits, your business becomes a taxable organization.
2. Set-Up Your Company and Premises
To be fully compliant you must fulfill these requirements;
- the director must be living in Singapore
- must have at least one shareholder
- must have a physical address
- the secretary just like the director must reside in Singapore
The Singapore government has invested in many business parks in the country. Therefore, it’s easy to find office space.
3. Start Hiring
To get highly qualified individuals, you will need to get in touch with Lion Capital. You can also culturally diversify your company by hiring people from all walks of life. You can do the same by validating work permits for employees coming from outside Singapore.
Diversity brings different talents to the table, making your company extremely productive.
Additionally, there are Agencies like the Workforce Development (WDA) that start job banks, making it easy to find and recruit qualified candidates.
Once you become an employer in Singapore, you are expected to;
- provide health insurance for your employees
- offer sick leaves
- give resting days to the employees
4. Open a Bank Account
Let’s face it; every company needs a bank account. Singapore Monetary Authority is where you find banking and insurance services. For instance; to file your taxes, you will need a bank transaction.
Therefore, that brings us to the next step.
5. Pay Your Taxes
First of all, when you start a business in Singapore, it does not equate to being double taxed.
Singapore has so far entered into a no double taxation contract with more than 73 countries. They also offer a unilateral credit of tax to countries with no taxation avoidance agreements.
Consequently, the state of Singapore expects you to file your taxes on time, given the advantages they offer.
Want to start a Business at Home in Singapore?
Have you been commuting or driving to work and it has taken a toll on you?
Then there might be a solution.
Working from home or remotely has recently become a trend due to the covid 19 invasion. Many businesses shifted their offices to their living room.
Hence if you have a passion and are sure your skills are adequate, you can start a business at home too.
Are you convinced yet?
Here are some home-based businesses you can consider looking into;
- interior design
- graphic design
Ways to Effectively Start a Home-Based Business in Singapore
Draft a Business Plan
Similar to all businesses, you need a business plan as a start and a home-based business is no exception.
After identifying the business you want to start, it’s imperative to set your target clients. That way, you can strategically organize your thoughts of ideas.
Choose a Working Area
Now that you decided on the business niche and your target audience, it’s crucial to set aside a specific area where you do all your work. Subsequently, you can equip it with the necessary, like a desk, chair, and cabinets.
Furthermore, based on the kind of business you want to start, you might need tools/software to make it run smoothly, for example; laptops, printers, phones, Ms office, internet to name but a few.
Fulfill Legal Requirements
Enterprise Singapore is ideal in helping you to know the licenses and permits your business demands.
Singapore has a bureaucracy that runs smoothly and oversees agencies working to assist businesses to thrive.
You can also seek government assistance to know your way around starting and nurturing your business in Singapore.
5 Must-Knows Before You Start A Business In Singapore is a guest post written by Amy Wong.