Beginner’s Guide on Starting a Security Technology Business in Singapore
The internet has made data transactions and storage fast and convenient. However, with its increasing utilization, organizational assets have become vulnerable to cyber attacks. Corporations need different types of security protocols to protect their information. And for someone who envisions help and revenue through this dilemma, starting a security technology business is a suitable idea.
You most definitely are from the IT sector if you are thinking of opening a security technology business. Being from a different sector, thus, even if you are good at hacking and development, you may struggle primarily with administrative compliance and statutory requirements for a startup. Some of the processes are discouraging and may exhaust your time and management.
Hence, we recommend you seek assistance from the leading Singapore corporate service provider to ensure smooth business processing. You could easily focus on essential matters in strategizing your security technology company. Here is a guide.
What is the Security Technology Business?
A security technology business implements security controls to protect its clients from cyberattacks on organizational assets such as computers, data, and networks. They offer a set of cyber strategies that block unauthorized access to a company’s confidential and essential information.
But what are the chances of having your services be needed? Every firm or organization has the duty to protect its digital assets and network devices from breaches that would cost them large amounts. Here are the types of security technology services you could offer.
- Data Loss Prevention. Most firms send out content or transactions through emails and other software applications. However, some may carry off confidential information that needs to be monitored closely to ensure that it does not leak outside the involved parties.
- Intrusion Detection & Prevention Systems monitor and regulate the traffic to ensure that no malicious or untrusted sources enter the network.
- A firewall serves as the first layer of protection for any system. It protects the network from unusual activities and traffic, ensuring all that enters the traffic are appropriate and useful. Hence, different types of firewalls work depending on the application.
- Antivirus is the most in-demand service or technology used in cyber security. From the name itself, it prevents any form of malicious code or virus attacks.
- Browser Security keeps your client’s internet browser fully operational, maximizing the security settings. It prevents other parties from accessing networks which leads to the acquisition of saved passwords.
- Cloud security protects applications, data, and confidential information in online stores that are not secured by a traditional security stack. Examples are cloud-based unified threat management (UTM) and access security broker (CASB).
- Endpoint security secures an organization’s computers, phones, tablets, laptops, and other devices that may prevent access to malicious networks. This could be advanced to devise management software or malware protection.
Pricing may vary since professionals execute the role. Some entrepreneurs overlook the level of effort in labor, leading to over-expense or payment below the standard. Furthermore, you can implement various types of pricing. You could have them sign a contract that bills them per hour of installation or one chunk of payment for the service itself.
Aside from securing your services and detailing the description of your business activities, you have to prepare for a long list of administrative and legislative work. Having a lot of accounts to prepare for may discourage you from continuing business operations. Fortunately, you could never run out of options. You could avail of one-stop company incorporation services for a less hassle business formation.
Security Technology Business Registration Process
Startups must comply with a number of requirements and obtain approvals to be legally recognized. It’s a part of the company incorporation process that protects shareholders from liabilities. Note that failure to complete the necessities may lead to lawful issues, as per the Companies Act and Accounting and Corporate Regulatory Authority. Here is a guide to Singapore company registration.
1. Choose a business structure to maximize your tax benefits. ACRA allows registering a Private Limited Company (Pte. Ltd.), Sole Proprietorship, and Limited Liability Partnership (LLP).
- Consider these factors in choosing a legal entity: number of owners, income tax rates, investment, liability, and funding attributes
2. Have your business name approved by ACRA. It must not be identical to existing firms or reserved by another company. There are also specific guidelines depending on the structure.
3. Prepare company registration documents:
- Company constitution
- Identification and residential details
- Description of business activities
- Particulars of Shareholders, Directors, and Company Secretary
- Signed Consents to Act as (1) Director (2) Company Secretary
- Memorandum & Articles of Association (for foreign companies)
- Singapore identity card
4. Submit the application documents to ACRA. The process would be conducted online and usually takes an hour, depending on the preparation of requirements. Some cases lead up to weeks.
Registering your business is not a mere act of compliance. It has underlying benefits that are useful in the long run. For example, you draw more potential clients since they could easily verify your legitimacy. Furthermore, with a registered business, you attract funding opportunities and governmental support. It also separates your financial entity, and of course, it certifies you in becoming a business owner.
Licenses and Permits Needed for Starting a Security Technology
In an attempt to regulate practices and develop opportunities for innovation and enterprises, all security technology companies must obtain a license from the Infocomm Development Authority (IMDA). You should also take note of the newly introduced Cybersecurity Law in case of security issues that may interface. Hence, other permits may vary on your added services and state approval documents.
To know more about this sector, feel free to contact us to handle your business needs. We are a team of professionals in company incorporation, accounting, taxation, and business advisory that would provide excellent services in starting a security technology business in Singapore.
Key Factors of a Successful Security Technology Business
Startups may have a solid business plan and skills to execute for their prospective clients. However, some of them fail to recognize the landscape in this field. The competition may be challenging, and the implementation of robust information security technology is not undertaken overnight. Here are some of the critical factors in starting a security technology business.
Form an Executive Board with Technology Security Experts.
Although we understand the demand for a secure system, it’s important to converse with professionals in the field. They would point out the pros and cons of decision-making. Thus, they have security controls in mind when encountering issues. If you’re an expert yourself, then it’s a great advantage. Know what you’re good at as well as what you lack thereof.
Get IT Certifications
Most clients do a background check to ensure that their organization is in the right hands. They prefer companies with certifications in information technology, computer science, and similar fields. It is a good indicator that you know how to get the job done.
Define Target Base
It’s true that you can offer a wide range of services. But having a specific niche may form a reputable position. For example, you could focus on the medicine and healthcare industry where doctors and hospitals keep confidential records of their patients. You could also introduce your company to schools and universities since the use of the internet is prevalent in the present generation.
Know Sector Trends and Development
It’s necessary to be updated on the latest trends in the security and data protection sector. The internet is fast-growing, as well as the threats that may come off unguarded. You wouldn’t want to have a hard time securing a modern computer using your traditional tools and equipment. It’s also nice to offer customized solutions and preventative measures that block them from future attacks.
Market Your Services
As a startup in cybersecurity, you may find yourself patterned with other security technologies providing the same services. Hence, you need to stand out and establish your reputation at the highest level of benefit. Don’t fall into lazy marketing strategy and be creative. Craft your campaign materials to initiate your value among the rest.