7 Steps To Starting Your Business In Singapore
Singapore is among the best countries for startups today. Every day, it is growing to be a popular entrepreneurial destination through its vast network and a relatively low taxation agreement. The Singapore government has been very keen on creating a business environment for entrepreneurs across the world that will help them grow their companies both locally and globally. The lucrative conditions for business startups and the unparalleled boostsmake Singapore one of the most sought out countries for starting a business.
However, starting a business in Singapore does not guarantee success. One has to put in the right workforce, use the correct criteria and gather the right details. If you’re an entrepreneur intending to start a company in the country, some of these steps from materializing your plan on a piece of paper to registering and finally plunging into work will be a critical milestone that we think you should have a careful look.
Put down the plan on paper
Before getting down into the meat and potatoes of the project, simply make yourself a mug of coffee and sit comfortably to let your mind relax and get productive. Begin by writing or drawing anything that comes to your mind immediately before its gone. All the materialized ideas should form a business plan. One noteworthy point to have in mind is that your project should manage to generate more money than it is supposed to spend.
After downloading all the content form your mind, now make google your partner to get the details that you may not have. If you have connections, people are a great source of information. You can ask the various individuals in the same niche to find out what they think about the industry in general. Is your service really a priority there? Is it competitive enough? These questions would help you grasp the nature of your venture and determine whether you will need to make any changes to your business plan or it’s at its best. Calculate the overheads while trying to cut them off where necessary.
Get the correct address
To get your business registered, you have to present the real local Singaporean address of where you intend to rent for the company. This address is quite important as it will be used to locate your business. All requisite documentation or deliveries will be sent to this address only, and your online customers will use it to find you. You will need to get an agreement from the Urban Redevelopment Authority to get approval to use the premises for commercial activities.
If your office is not enough for commercial activities, you may want to use your rented house which you must get permission for from the Home Office Scheme. However, there are terms and conditions which includes not hiring more than two foreigners or advertising it on billboards.
Determine the business structure
The government of Singapore provides a bunch of legal entities for registration such as partnership, a branch office, sole proprietorship, a subsidiary, a representative office, or Limited Liability Company. Note that you don’t choose randomly any entity you feel is appealing to you but choose according to your business formation, which impacts various aspects of your business.
For instance, it would be wise of you to work with a partnership if you intend to share your business with a partner. If you have a small manageable business free of risks, and that is unlikely to face the law at any one point; sole proprietorship should be your ultimate choice. While the examples as mentioned above are winning entities from the tax point of view, some of your activities are subjected to personal taxation. Therefore, you have to be wise enough if you want to save a lot on corporate taxes.
Select a business name
Most often overlooked, a business name is an essential part of your business registration process. The name selected must be unique and appropriate. The Singaporean government recommends a name with a theme that represents the philosophy of your business, not too similar to other business companies and not obscene.
The best way to go about it is scheduled for a name check before you begin registering to avoid making choices that have already been done by other companies causing delays and frustrations. A wise key point to mention is matching your domain name with the selected name if you intend to take your business online.
Make inquiries about the business licenses
One of the most significant achievements in registering and starting a business in Singapore is acquiring all the licenses. Although you will be allowed to obtain the needed license after your company has been incorporated by the Accounting And Corporate Regulatory Authority (ACRA), it is essential that you read and study the legal conditions before to avoid getting your self and the company into trouble with the law in future.
The hiring processes
Thinking of getting a foreign workforce? Wrong idea; especially if you are low on cash. Getting foreigners on board will not only take an eternity but will also drain you financially. However, the government of Singapore is making efforts to ensure that there is a productive workforce in the country to help upcoming startups. Businesses can now rely on qualified professionals and well-trained workers through the Workforce Development Agency.
Hiring overseas, on the other hand, requires the employer to get work permits, employment passes, and visas which can be processed within a couple of weeks or months. The foreign workers will need to settle down and stay in Singapore as none residents, which incorporates them into the Singapore taxation system.
Promote the business
Once you have registered your business, rented the business premises, hired employees and kickstarted your venture, it is time to promote it. Naturally, you cannot promote something that isn’t there; and with that said, you can start marketing your products the legal way while describing the location as well as the achievements. In Singapore, all businesses are entitled to fair participation, competition and advertisement as stated by the Singapore Code of Advertising Practice ( SCAP) provided that it is not downgrading the other nor promoting illegal products and activities.