How to start a business in Singapore
In the 2020 survey by The World Bank, Singapore ranked second for the ease of starting a business. It often tops the list. This means starting a business here is a smart move for many. Singapore is known for its easy company registration in Singapore, favorable tax system, good location and infrastructure, highly-qualified workforce, quality of life, open immigration policy, and strong intellectual property regime.
Key Takeaways
- Singapore is one of the easiest countries in the world to start a business
- The country offers a range of advantages such as efficient company registration, favorable tax system, and highly-skilled workforce
- Entrepreneurs can benefit from Singapore’s strategic location, modern infrastructure, and open immigration policies
- The intellectual property regime in Singapore provides strong protection for businesses
- Developing a thorough business plan and understanding legal requirements are crucial for starting a successful business in Singapore
Register Your Business
You must first register your business with the Accounting and Corporate Regulatory Authority (ACRA) in Singapore. This step is vital as it makes your business legally recognized. It ensures your company can benefit from being officially registered.
Determine If You Need to Register
As per ACRA rules, any profit-making activity done regularly should be registered. Yet, some exceptions allow using only your legal name for business. These cases do not need registration.
Understand the Benefits of Registration
By registering, your business becomes recognized. This unlocks access to government help and opportunities to bid for contracts. For those with a private limited company Singapore, it shields the owners from full business debts, providing some security.
Choose the Suitable Business Structure
In Singapore, various business types exist, like sole proprietorship Singapore and private limited company Singapore. Each has its own rules and benefits. Look at what your business needs, its resources, and what you hope to achieve. Then, choose the best fit.
Obtain Necessary Licenses and Permits
In Singapore, starting a business means you need various licenses and permits. This depends on what your business does and how big it is. Make sure you know the industry-specific regulations for your business. This way, you can operate legally in the country.
Different sectors in Singapore have unique business licensing needs. Places like finance, healthcare, or education may require special permits. Research and plan carefully to meet these regulations and get the necessary approvals.
Knowing the rules for business licensing and industry-specific regulations helps. Entrepreneurs who do their homework can get the permits and licenses they need. This allows them to start and grow their businesses the right way, following local laws and guidelines.
Choose a Business Location
Starting a business in Singapore means choosing where to put it. The place you pick can really affect how well your business does. So, it’s key to look into the rules for where a business can be.
Understand Location Requirements
When you start your business, you must give the address where you’ll work. This place could be a store, office, or space for making things. Or, it could be your own home if your business will be there.
Working from home needs a bit of extra work. If your home is in an HDB property, for instance, you have to check with the Housing Development Board (HDB) first. They need to say it’s okay for you to use your home as a business spot.
Consider Zoning Regulations
Picking a business location means also knowing about the zoning rules. Some places may not allow certain types of businesses. It’s important to check these rules to avoid starting in the wrong place.
With the right location and knowing the rules, you can start your business the best way. This helps your business follow the law and grow well in Singapore.
How to start a business in Singapore
Starting a business in Singapore? You first need a solid business plan. Include who your customers are and how your business helps them. Add facts about your product/service, know your rivals, and make financial and marketing plans.
Develop a Business Plan
Your startup needs a strong business plan in Singapore. This plan should tell your mission, goals, and focus market. It must also check out the competition, market your brand, and project your finances. Doing thorough industry research, knowing your rivals, and pitching a strong value will steer your business in the right direction.
Secure Funding and Financing
Getting enough startup funding is key to kickstarting and growing in Singapore. Look into funding options like savings, angel investors, or grants for entrepreneurs. It’s also crucial to know Singapore’s financial duties to run your business well.
Understand Tax Obligations
Running a business in Singapore means understanding its taxation rules. Know if you must pay corporate tax, GST, or other taxes based on your business type. Getting advice from an expert accountant or tax advisor is wise for managing Singapore’s tax nuances.
Reserve Your Business Name
The first big step in Singapore business starting is picking a unique name. You must register this name with ACRA. This makes sure your business name registration Singapore stands out and isn’t used by someone else.
Check for Name Availability
Checking your name is crucial before you register it. You don’t want your new name to be already taken or have bad words. It must also not seem like you are part of the government. To do this, you search the ACRA ACRA name reservation database.
Reserve the Name with ACRA
If your chosen name is okay, you can reserve it online for 15 SGD. This reservation lasts for 120 days. It gives you time to complete the rest of the setup for your business in Singapore.
Register for Corporate Tax
As a business owner in Singapore, it’s vital to know your corporate tax duties. What you need to do for tax will vary based on your business’s legal setup and how much money it makes annually. Usually, smaller businesses, such as sole proprietors or small partnerships making less than 200,000 SGD yearly, have simpler tax rules. But bigger businesses, like corporations, have more to cover with their taxes. This often means facing more steps and detailed processes.
Understand Tax Filing Requirements
It’s smart to get advice from a tax professional no matter what type of business you have. They can help make sure you meet all your tax responsibilities on time and correctly. Understanding what the Inland Revenue Authority of Singapore (IRAS) expects from your tax filings is key. The IRAS is in charge of collecting taxes in Singapore.
Register for Goods and Services Tax (GST)
If your business in Singapore makes over 1 million SGD a year, you’ll need to sign up for GST registration Singapore. The GST is a tax added to the price of goods and services sold to customers. It’s then passed on to IRAS. Keeping up with GST rules avoids fines and keeps your business in good standing.
Open a Corporate Bank Account
To start a business in Singapore, you’ll need a corporate bank account. This account will manage your deals with customers, partners, and the government. A corporate account shows your business is reliable. While it’s not easy for foreigners, each bank has its requirements.
Choose a Bank
Consider the bank’s multi-currency account Singapore choices, its reputation, and how simple it is to open an account. Think about the costs too. DBS Bank, UOB, OCBC, and Wise Business are well-liked by businesses in Singapore.
Prepare Required Documents
You need specific documents to open a corporate bank account Singapore:
- Business registration certificate (e.g., ACRA registration)
- Copies of shareholder and director identification documents (e.g., passport, NRIC)
- Proof of business address (e.g., utility bill, tenancy agreement)
- Initial deposit (the amount varies by bank)
You may have to talk to the bank about your business. They might ask for more details about what you do.
Hire Employees and Register for CPF
As your business grows in Singapore, consider hiring employees. It’s key to follow Central Provident Fund (CPF) rules. Knowing how to hire people and register for the CPF is important. It helps you build a strong, compliant team.
Understand Employee Hiring Requirements
When hiring in Singapore, arm yourself with key knowledge. Learn about local labor laws. This includes minimum wage and what foreign workers need to get started. Knowing about paid leave and insurance is also a must. Making sure everyone is onboarded well can prevent headaches later.
Register for Central Provident Fund (CPF)
In Singapore, the CPF is mandatory. It’s a way to save for social security. Both you and your employees must add a set percentage of their salary. You’ll need to get a CPF submission number to do this. Make sure you pay on time for all your employees. This rule includes residents and those with work injury compensation needs.
| Requirement | Description |
|---|---|
| Hiring Employees Singapore | Understand local labor laws, minimum wage, work permits for foreign workers, and employee benefits. |
| CPF Registration Singapore | Apply for a CPF submission number and make timely contributions for Singaporean and permanent resident employees. |
| Work Injury Compensation Insurance Singapore | Ensure compliance with work injury compensation insurance obligations based on your business and employee roles. |
Market Your Business
With your business flourishing in Singapore, it’s time to focus on engaging your audience. Create a marketing plan to find your customers, enhance your offerings, and promote your business. This includes both online and offline strategies.
Develop a Marketing Strategy
Start by researching your market, including who your customers are and what they need. Use this data to build a marketing plan that suits your goals and reaches your audience. Think about what makes you unique, how you price your products, where you sell, and how you promote to create a strong plan.
Utilize Online and Offline Channels
A strong online presence is a must in today’s world for businesses in Singapore. Focus on creating a website that’s easy to use and can be found in searches. Also, use social media to connect with people. Use these strategies along with traditional marketing tactics.
Offline, consider activities like joining events, working with local companies, or using print ads. By combining online and offline marketing, your business in Singapore will stand out more. You’ll attract more customers and see your business grow.
Conclusion
Starting a business in Singapore as a foreigner has a clear process. You need to register your company, get the right licenses, and pick a good place to work from. Next, you must secure funds and understand your tax duties. It’s also important to reserve your business’s name and open a bank account. Hiring people, setting up the CPF for employees, and making a solid marketing plan are key steps.
This country is known for being very welcoming to new businesses. It has a strong economy and government support. These factors make it a top choice for many. If you follow the steps to start a business here, you’ll be tapping into a vast network of support. This network can help your business grow for many years.
If you’re new to starting a business or already have experience, getting the right advice is crucial. Singapore’s business environment is very competitive. Knowing what to do and how to do it will really help. By staying informed and getting professional help, you can set up a business that thrives. This is true whether you’re new to this or have done it before.
