Beginner’s Guide on Starting an Electronics Business in Singapore
The use of today’s electronic devices is a major part of our daily life, and we hardly think about what the world would be like without them. Everything from cooking to music is somehow using electronics or electronic components. As such, starting an electronics business in Singapore has great potential.
Our family vehicle has a cooking stove, laptop, cell phone, as well as many electronic components. Children and teenagers carry their mobile phones with them everywhere. They use them to take and transmit photos and videos, and to play music. They send text messages from their cell phones to other phones or home computers.
Literally, the thousands of everyday devices we use are always relying on electronic technology to make them work. They range from automotive engines to automation devices on the factory floor. As Singapore is a place for blooming businesses, why not start your electronics business here as well?
Electronics Business Industry Practice
When talking about an electronics business, the first thing you need to do is decide on what kind of electronics your business in Singapore wants to get involved in. For example, you can do consumer electronics. In consumer electronics, you need to decide whether you would like to venture into office gadgets like scanners, personal computers like laptops, calculators, or even front projectors, or would you like to go into home appliances such as air conditioning, washing machines, vacuum cleaners or even audio and video systems like headphones or home theatre sound system.
Next, you can venture into industrial electronics. This category focuses on making bigger automation like machine learning robotics or renewable energy applications. You can also venture into medical applications like an ultrasonography (ultrasound) machine or ICU equipment.
So many ideas and unsure of which one you want to go into? Take your time to analyze what you like and what the market needs, then go into it.
Once you have decided on which type of electronics business you would like to proceed with, you can proceed with starting your business. You can build and create your own electronic device, or you can distribute an already created product.
Electronics Business Registration Process
In this article, we’ll be sharing with you a guide on starting an electronics business in Singapore from scratch. First and foremost, you will need to register your company, whether you want to be a creator or a distributor, company registration in Singapore is a process you need to go through. In Singapore, all companies must register under ACRA. But before registering your business in a hurry, maybe you should identify your business structure first.
Identifying your business structure. There are three types of business structures: private limited company, sole proprietorship, and limited liability partnership. You may decide which type of business structure you prefer when considering the number of owners, initial investment, liability, income tax rates, and funding for expansion.
After deciding on the type of business, you can proceed with the registration of your company.
There will be three simple steps to register your electronics business company in Singapore.
1. Getting a Company Name With ACRA’s Approval
You begin the process of forming a new company by obtaining ACRA approval for its name. If you keep the following points in mind, your chances of receiving a quick approval will increase.
- The name must be unique, meaningful, easy to remember, and free of vulgar or obscene words.
- There are no copyright issues.
- It must not infringe on any trademarks.
Once you have the approval of your business name, it will be reserved for you for 60 days from the date of application. If your Singapore company incorporation process takes a little longer, we can file a request with ACRA for a 60-day extension on your behalf.
2. Preparation of Documents to Set Up a Singapore Company
- Company name registered with ACRA
- A brief description of business activities
- Details of Singapore registered address of the company
- Shareholders’ Particulars
- Directors’ Particulars
- Company Secretary’s Particulars
- Foreign Entrepreneurs must submit a copy of their passport and residential address proof (overseas)
- Foreign Companies must submit Memorandum & Articles of Associations
- Singapore Residents must submit a copy of their Singapore identity card
3. Submit an Application to the ACRA
You can file for company registration in Singapore when you have approval for your company name. If all of your documents are in order, the process should not take much time.
Forming Your Business From the Ground Up
Create Your Business Plan
As a creator, releasing your product into the market will be the endgame, right? Therefore, Step 1 would be to create your business plan. When starting any new business, you need a good business plan that includes an electronics business. This plan should include your plans of how your business will grow over the coming weeks, months, and years. Everything should be accounted for so that you will know what you will be spending on and when. One tip for you, be realistic! It will take some time before you see any profits in your business, so be patient and plan well.
In any business, you will need funding. This includes your very own electronic business here in Singapore. You’ll first need funding for your research and development, and also not to forget your first manufacturing cost along with your overall running cost until you have an income from your product. Heads up, dear readers, this is a very crucial step, so do not skip this.
Do Your Research
Before you start designing and manufacturing your product, you need to extensively investigate and test the concept. Look to see if anything similar is available. You should also conduct market research to determine whether or not potential clients are interested in the product.
Develop Your Product
After thorough research, and once you are happy with the concept of your product, you should start making it. For this step, you will need to hire a product developer and a designer to aid you on this journey of creating your very own electronic product. And trust the process and do not try to rush it as this designing and developing product step can be very time-consuming.
Build Your Prototype
Once the design for your product has been finalized, then you can start building your prototype. A prototype is like a first or preliminary version of the product. You may ask where to build this prototype of yours? The answer is there are many specialist factories that will build prototypes based on a given layout plan. You can consult them and discuss the price and time needed to create your prototype. Also, make sure you know how to produce a layout plan, as this is a crucial step. If there are any errors in the layout plan, the error will be in your prototype.
Test Your Prototype
Once you have your prototype in your hands, you need to thoroughly test it out to make sure it is functioning as you planned and to point out any errors or areas that can be improved on. Another tip on making your electronics business in Singapore bloom is that you should carry out more research with your working product. Finally, your prototype can also be used to ensure it reaches all the safety checks and meets regulatory requirements.
You can start taking and showing your prototypes to retailers and see if you can find any buyers who will want to sell your product in their store.
Electronics Business Licenses and Permits
Fortunately, no special license is needed to sell electronic products in Singapore. If you are planning to be a distributor, you only need to set up your company, obtain all approval needed with the relevant authorities and start selling their products.
Remember, while selling electronic products, you do not need a special license but must abide by the Domestic Sale of Goods Act within the Singapore Commercial Law. Make sure you follow the labeling requirement, go through required lab testing, and abides by the consumer protection regulation. Contact 3E Accounting for a professional’s view on the entire company registration process as well as the documents you need!
While handling all those, you should also take into consideration the technical aspect of establishing your business. However, the company registration process can be simplified by just hiring a Singapore corporate service provider, like 3E Accounting. With our team of professionals, we will definitely be able to assist you and ensure a smooth process of starting an electronics business.