How to Start a Business in Singapore
For decades, Singapore has been ranked at the top of the World Bank’s ranking of the easiest places to do business. The reasons are simple but powerful: A strategic location, legal and judicial system, and the vibrant government-pro investment climate helped transform Singapore into a regional economic powerhouse. Singapore has since gained its traction as one of the investment hotspots in Asia with an influx of foreign investors into the country.
While many people are keen to do business in Singapore, it is crucial to understand why and how to start a business in Singapore.
Ask yourself: Why do I want to start a business?
“Why do you want to start a business?” is the commonly asked question when a person wanted to start a business. Once you figure out the intention and the reason, you can start asking yourself more questions to help you to know the type of business you should (or can) start, and if you are ready for that.
- What skills do you have?
- What is your expertise (where is your area of expertise)?
- Are you financially prepared?
- How much capital do you need?
- Are you even ready to be an entrepreneur?
Do you have a business idea?
If you are thinking about starting a business, or you are determined to do business, you likely already have an idea of what type of business you want to do. Having a business idea is like the basic ingredient to cook the dish. You can run a quick research for existing companies in your chosen industry and learn what others are doing. In fact, a solid business idea will help you to develop a business plan.
Have you done the market research?
A great business idea can be very impactful if paired with adequate market research. You can start your market research by researching your potential competitors or partners within the market and understand their strength and weakness.
What is your business plan?
Develop a proper business plan when you have come up with the business idea and market research. A well-written business plan will help you to sort out where your company is going, how it will overcome any potential risks and challenges, and what you need to sustain the business.
Assess your finances
Please bear in mind that starting any business has a price, from the venture capital to marketing budget. Therefore, you need to understand and find out how you are going to fund your business. Do assessments to sort out what kind of business financing solution your business need, and how are you going to sustain your life without the stable source of income.
Incorporate your company
In Singapore, the company incorporation process involves two main steps:
- registering the company name; and
- incorporating the company.
All Singapore companies are registered with Accounting and Corporate Regulatory Authority (ACRA).
- Register the company name
Before the company name registration, you need to decide a business name that can spell out your business and market your business effectively. You can run a free name check to find out the availability of your proposed company name.
- Incorporate the company
Here are the key takeaways of company incorporation (including key information and documents required for company incorporation in Singapore):
- Approved company name
- Brief description of business activities
- Copy of identity card for Singaporeans and passport, overseas residential address
- Proof for foreign nationals
- Shareholders’ particulars
- Directors’ particulars
- Registered company address
- Company Secretary’s particulars
- Memorandum and Articles of Association (MAA) for the company
You can read up more information about company incorporation here.
While the company incorporation process in Singapore is pretty simple and direct, it’s highly recommended to get the professional assistance from a professional firm (to ensure that the company is incorporated as per the regulations of Singapore Companies Act). If you are looking for a professional firm that can provide a one-stop service for all your company administration needs such as company administration, accounting, tax filing, business license application filing and related matters, 3E Accounting Singapore has it. Contact us today to find out more!