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A Complete Guide to Start A Business in Singapore 2023
Start a Business in Singapore
It is not exactly a cakewalk to start business in Singapore just like in any other country in the world. Although Singapore is quite a business-friendly nation for starting your own business, there are certain things an entrepreneur should bear in his/her mind before starting a business.
Key Factors To Consider Prior To Starting A Business In Singapore
Check out a few key factors you should consider before starting your own business in Singapore.
1. Determining what business to start and how to start own business
The first step to realizing your business ambitions is to incorporate your company by getting your business registered in Singapore. However, to do that, you should first determine the kind of business structure that would be appropriate for you. Most of the country’s businesses are private limited organizations.
While a sole proprietorship may appear alluring, you need to remember that it has its own share of downsides. It is a one-man business that regards the business and the business as a single entity. It also means that a sole proprietor is accountable for all the liabilities and risks incurred by their business and may have to sell their assets to settle the losses and debts of their businesses. Instead, Registering as a company is definitely a much safer bet, on the other hand. After you have decided on the business type, registering it is an inexpensive and simple process.
Learn more on what business to start in Singapore on our Industry Guide providing you with more details information about how to start and operate a Singapore Company.
Click here for your Guide to Singapore company registration so that you can enjoy a hassle-free registration process and help on how to start own business.
2. Get funds for your new business and starting your own business
Have you thought the how can you get finance to start your business in Singapore and get help setting up a small business? Apart from bootstrapping, you may have to explore your contacts and find out the possible funding sources available to you to help setting up a small business. Many people begin with their personal savings and have a tendency to borrow money from their acquaintances. However, based on the kind of your business funding needs, it may not be adequate for you.
A big perk of starting your own business in Singapore is that there are several attractive schemes already in place for helping small new ventures. For example, the aim of SPRING Singapore is to ensure that innovative business ideas are transformed into workable plans by offering the necessary support to the ambitious and young to start their businesses. Plus, they offer support to motivate more businesses so that they can start their journey towards transforming into global competitive brands.
Check out some of their popular schemes below if you are wondering how to start your own business.
- Business Angel Scheme
- SPRING Start-up Enterprise Development Scheme
- Technology Enterprise Commercialization Scheme
- Sector Specific Accelerator Programme
You need to find out which would be most appropriate for your requirements. You can contact SPRING with your project details and business ideas. In case they like your ideas, you may get funds for your business with their support.
Plus, there are several other avenues for you to receive guidance and get funding for your project in Singapore. Some of them are:
3. Networking for the business
If you are contemplating how to start own business in Singapore and develop it, you need to also do the right kind of networking for your upcoming venture. It is also recommended that you participate in professional networking in the country the moment you have proper clarity on the kind of small business you want to begin.
Rather, immediately seek a membership of the trade & industry associations linked to your domain area at the earliest. It is also imperative for you to take part in the start-up meets, trade shows, exhibitions, and seminars. Avoid spamming but become an active member of the social media platform.
4. Start your new office
Some new businesses prefer working from their homes to save money as well as other resources. The arrangement works fine when you are a sole proprietor or have less than three persons in your business.
However, if you want to see your business growing, you have to shift to a separate office space soon. At the same time, you need to remember that rents for commercial spaces are high in Singapore. This space is ultra competitive despite having access to the abundant talent pool.
Plus, there should be a proper plan to combat the staffing challenges. An important consideration to make is the number of employees you need to have on board in your first year. You need to get some solid figures to have a proper estimate of the relevant expenses so that you can plan around them.
Singapore is becoming the preferred destination for first-time entrepreneurs. The country has signed a huge network of Agreements pertaining to Double Taxation Agreements, which is one of the key reasons for this. The Singaporean Government has successfully created a positive ambiance for businessmen so that their businesses can thrive. As so many merits are being offered by the Lion Capital, more entrepreneurs are interested to begin their businesses here.
In case, you want to know how to start small business of your own, the steps mentioned below will definitely help you.
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Steps To Start A New Business In Singapore
Following Are The Key Steps To Get A New Business Started In Singapore:
1. Register your business
Getting your company registered in Singapore is definitely the first step to start up business. All aspects of your business starting from the name of your company to the details of the Board of Directors need to be registered with the ACRA or Accounting and Corporate Regulatory Authority of Singapore prior to starting your business operations or begin hiring your employees. Once your company has been registered in Singapore, you may simply proceed and apply for all essential permits to start your business. If you take the help of reputable and reliable company registration services in Singapore, your job will be simply a cakewalk.
2. Procure the necessary permits
Before running your company or small business, proper permits may have to be procured for your business. You need do an extensive research work to find out details about the permits to be obtained that are relevant to your business. The good news is that you can take the help of EnterpriseOne, which has the entire list. You can go to their website to apply for them. It is one of the online branches of the Singaporean governments, which supports businessmen to figure out how to start own business in Singapore. Thus, the government of Singapore has taken all possible steps so that the process of beginning of a new business can turn out to be a smooth one.
3. Set up office
It is imperative to find the right site to operate your business from for its survival. While setting up an office can be an issue in any other nations, it is not the same case in Singapore In fact, the government of Singapore has made investments in several huge business parks all through the country, which can function as the ideal stage for the debut of your business. You will not face any problem to find an appropriate space for your office in Singapore with all these business parks.
4. Recruit employees
The Lion Capital has taken the best possible initiatives to make sure that startup businesses enjoy superior access to a continuous supply of qualified and well-trained professionals. In fact, the Workforce Development Agency or WDA will initiate a jobs bank so that a startup business finds it simple to search for and recruit their employees. It may be also necessary for you to hire your staffs from abroad in case you can procure valid work passes for them.
Plus, you may also have to get familiar with your responsibilities as a Singaporean employer within the scope of the Employment Act of the country. For instance, you need to make their payment within a week after their salary period and give them their medical leaves and rest days. You are also recommended to procure medical insurance coverage, which covers the health care needs of your employees.
5. File relevant taxes
In case you believe that beginning a new business in Singapore can lead to double taxation, think again. The country has entered into detailed agreements for Avoidance of Double Taxation with more than 73 nations. Plus, it offers unilateral tax credit with the countries it has not entered into such agreements. The Singaporean government offers such advantaged and expect that the entrepreneurs will pay their taxes on time. You can also hire the services of an experienced tax consultant so that your taxes can be easily manageable and you can pay them on time.
Importance Of A Business Plan
You may have an innovative idea to start a new business in Singapore. However, a successful entrepreneur cannot simply survive on only great business ideas. In order to transform your dream into a reality, you need to first formulate a proper action plan.
The aim of a well-structured business plan is to provide a detailed roadmap of the ways an entrepreneur can set up a café and run it or ensure that your app is ready for download. A proper business plan must state the primary goals of your business, marketing plans, financial requirements, and reasons why they can be attainable. The pan can also constitute proper background information about the team or the organization trying to attain such goals.
The good news is that a business plan need not be a very lengthy document in the beginning – you simply need to place the basics of the plan. Later on, you can keep adding to it as and when your business keeps growing.
Additionally, your business plan’s focus can keep changing over a period of time based on how you use it. For instance, in case you use the plan for fundraising, you will need to focus with great caution on the financial aspects, growth potential, and management of your business. Irrespective of whether you want to start a big or a small business, it is a crucial step to name your business while creating your business plan.
It is possible to check company name very easily and find out whether a particular name is available for use in Singapore or not for naming your business.
How To Start A Small Business At Home?
It is possible that you feel that you would like to be your own boss after working for others for many years. Or it is possible that you want to give a concrete shape to your deep passion or your biggest talent by making it your second career. No matter what the biggest reasons are to start your home-based business in Singapore, it can be definitely an exciting prospect. Similar to any other business venture or profession, it is crucial to make a proper plan to see your dream of getting fulfilled.
There is much similarity between starting a business at home and starting your regular business. The major difference is that there is no requirement for a separate physical office space if you plan to work from your home. In order to ensure that your home-based business is a success, you have to select the one you are deeply passionate about. Plus, you should have adequate skills and experience to ensure its success.
Kinds Of Home Businesses You Can Begin From Home
The sky is the limit for you! You can do anything from your home as long as there is the right kind of drive and you have a deep passion for your work. Thus, you can begin your home-based business in any field. Check out some of the home-based businesses, which are immensely popular in Singapore. You will also find the requirement for each job below:
- Massage therapist: Must have the necessary licensing requirements
- Bookkeeper: You must have had training in accountancy and have knowledge regarding bookkeeping
- Expert in tax preparation: Background training in taxes
- Graphic designing: Flair for creativity and knowledge of design software
- Interior designer: Certification or degree in interior designing
- Hair stylist: Must have the necessary experience in hair cutting
- Virtual assistant: While there are no specific requirements as such, organization skills will definitely come handy
- Copywriter: Must have a good command of English. If you have a degree in communication, English, marketing, or English, it will be an added bonus
- Translator: Must be proficient in multiple languages
- Editor: Background in communication or English
- Marketing consultant: Must have a background in marketing
Follow The Checklist Given For Your Home-based Business In Singapore
1. Get your Specific Space
It is the most important step before you start your own home-based business in Singapore. Set aside a particular space and designate it for your home-based business. It can be one of your spare bedrooms, your garage, or a portion of your living room. Alternatively, it can be just a desk.
2. Organize Your Space
After you have designated the area for your home office, you need to organize it in a way to make it most productive. Not only will you need the usual stationeries, but may also need a comfy desk/chair, filing cabinets and so on.
3. Communication Services/Equipment
Here are a few ideas on the kind of communication services and equipment you may require keeping your home-based business functioning smoothly:
- Speed of the Internet
- Software like Adobe Acrobat, MS-Office
4. Create a Proper Business Plan
You need to decide fast on the kind of business you want to start from home as well as your target customers. A business plan is a perfect blueprint to organize those ideas and thoughts. You can choose from one of the several templates that are available on the Internet. The key features of a standard business plan are as follows:
- Executive summary
- Products and services
- Company overview
- Market strategy and market analysis
- Financial overview
5. All Set to Start Your Home-based Business
Once you have raised your finances and have developed the business plan, it is now time to focus more closely on the details pertaining to your home-based business. A key piece to establish a home-based venture legally is to determine the kind of permits or licenses you may require. EnterpriseOne is a good online resource as mentioned earlier also to research for permits and licenses required in Singapore.
The above discussion might have enlightened you on how to do small business in Singapore. Possessing an unwavering grit and determination and proper clarity of vision are some of the prerequisites for succeeding as an entrepreneur in Singapore. Many start-up businesses frequently fail as their entrepreneurs fail to realize the kind of commitment and legwork required for the success. On the other hand, in case you have the right kind of mindset, Singapore is an excellent place to see your ideas maturing into actionable plans. Click on why 3E Accounting Company to know the benefits of choosing us as your reliable service provider to open a new business in Singapore.