You have done 9 to 5 jobs for years, gathered some money, and now it is time to set up a business. Singapore is a great option to consider for starting a business thanks to its favourable tax conditions, thriving economy, minimal corruption, etc.
If you have been considering setting up a new business outside your country of citizenship, you should try out Singapore, especially if you are willing to live there. But of course, it is much easier to start your business in the country if you are already a citizen.
You might be aware that running a business anywhere in the world is no joke and although there are similar rules, starting a business in Singapore requires a step-by-step plan which you will see in this article.
The six steps to Starting A New Business In Singapore
1. Be prepared
Starting a business means starting with a why. A lot of people’s reason for starting a business is to escape working 9 to 5 for someone else. As much as that could be a great reason to start a business, it should not be the only major one. Finding a solid basis for starting a business would keep you going when the going gets tough.
You should also sharpen your leadership, entrepreneurship, and people skills because they will help you pull through. When you have a definite purpose for your business, you will start to imagine a big goal you wish to achieve. You can then learn about your market, audience, and strategy and create smaller goals.
2. Raise funds for your business
If you are looking to start a small business, you might not need huge capital, but it is the opposite if you want to go big. You need some cash to start your business in Singapore. If it’s a small business, you can ideally start that with the money you made from your 9 to 5. On the other hand, if you are looking to start a big business, you may need investors or other viable options such as:
- Government schemes
- Venture capital
- Family and friends
3. Make your business legal
Owning a good business in Singapore means registering your business and going through the legal proceedings where necessary.
To successfully register your business, you can use the services of a1corp.com.sg.
After choosing a business name that may cost about $15 to register, you will have to select the business entity you want to incorporate. This is why you cannot skip the first step because you have already figured out what kind of business you should have. Let’s take a look at the different choices of business entities that you can incorporate below:
Company: when you set up a company, you ensure that your business matters are kept separate from personal matters. It allows you to differentiate business debts from personal debts. It may cost up to $300 on average to set up.
Sole proprietor: if you want to set up a business with your brand, then a Sole proprietor might be suitable. The difference between a Company and a Sole proprietor is that your debts are not differentiated from your businesses in a Sole proprietorship. It may cost up to $100 on average to set up.
Partnership: This is a significant business entity when the business is a partnership between two or more people who will be liable for the debt and the profits. You and your partners would need $100 to set it up.
4. Set up a business bank account
Whether you are a sole proprietor, opening a new bank account for your business is best. This is a great idea to help you track your business’s cash flow. There are many suitable business bank account options available in Singapore. For example, the Maybank FlexiBiz Account doesn’t charge a monthly maintenance fee, and the OCBC Business Growth Account doesn’t set a minimum limit for a business owner.
5. Select your points of contact and office
As a corporate business, you have to set up a suitable system or mode of communication. Think of social media, mailbox, phone numbers, etc. You should have a point of contact for each.
Next, you should also set up your office. Most companies have a registered headquarters or main office address, which should be no different from your business. If your business is remote, you can use a virtual or home address after applying for the Home Office Permit.
6. Set up your business
Now that you have done all of the legal aspects, planning for your business, and opening accounts, it is time to set up your business to be up and running fully. It means you have to set up a team where necessary and manage the entire process, and that’s no easy feat. You should be informed of the Singapore laws on employees’ rights.
Hiring a lawyer for your business is one of the best things to avoid breaking the rules and running down your company. There is also a compulsory leave of at least seven days which employees must enjoy in their first year and at least 14 in subsequent years.
Since you already intend to own a Singapore business, you should use this article to guide you in getting started.
What exactly does it feel like to start a business in Singapore? You might have to find that out and shape your experience. Best of luck!