Many people dream of becoming their bosses, so they start their own companies. However, you need to think of a good business idea and find a country or place with massive investment opportunities for your idea to be a success. Singapore is one of those places full of opportunities with new startups registered every year.
The fact that there are many investment opportunities in Singapore does not mean that setting up a company is a piece of cake. There are many risks you can face, which can hit you hard without proper planning. Yes, registering a company is free, but you must lay all of the necessary foundations to ensure that your business succeeds.
One of the greatest benefits startups in Singapore get is the tax advantage. This is key to the survival of a very young business. On top of that, the government initiated various schemes aimed at helping startups gain a financial footing. In this article, we share the key factors to consider when starting your company in Singapore.
Deciding on a business structure
New companies in Singapore are registered by the Accounting & Corporate Regulatory Authority (ACRA). This body oversees the entire registration process, ensuring that applicants have complied with Chapter 50 of the Companies Act. You can register your business with ACRA either as a sole proprietorship, a private limited company (Pte. Ltd), or a limited liability partnership.
Before registering your business, you must settle for one of the above structures. A private limited company is the most selected option because of the several benefits over other business structures. Pte Ltd businesses pay taxes of 0-17% instead of 0-22% taxes incurred by other business structures. A private limited company is a distinct entity from the owner, meaning that personal assets cannot settle debts and liabilities incurred by the company.
Foreigners who want to start a Singapore company must first acquire a visa before registering for their business if they want to do it independently. You can check out this site of a leading visa agent for reference on how you can get help to obtain a Singapore work visa quickly and hassle-free.
Choose your preferred industry
To realize your dreams of becoming your boss by setting up your own company, you must register your business first. However, to achieve that, you must choose an industry within which you will operate. There are plenty of opportunities in various sectors but deciding on a specific sector helps streamline the registration process.
There are professional services like medicine and law, which will require you to register with professional bodies. To make the registration process smooth, identify the industry you will venture into to find out all of the registration requirements.
Acquiring the necessary business permits
Before even your company starts operating, you must make sure you have all of the required permits in place or you risk getting yourself into trouble with authorities. It is important that you first research the type of permits required in the industry you have selected.
It is recommended that you seek professional advice on the various types of permits required in your area of operations. Various agencies understand the ins and outs of starting a company in Singapore, which can help you figure out the required permits. You can also check online resources to help you identify all the requirements you need to set up your company.
Funding for your new company
If you intend to be in business for a very long time, you must first work out the financial aspects. Companies, especially the new ones, need finances to run so you have to figure out how you can access funds. Do not just focus on how you can obtain funding but also check out the costs you can incur if you choose a certain source of funds. This can save you from landing into financial troubles before your company gains a footing.
Calculate all your capital and fixed costs so that you can decide on the number of personnel you can start with according to your budget. You also need to make sure you have funds set aside in case of an emergency. Check out on the government’s various funding schemes and select the one that best suits your requirements. You can then set up your office and be good to go.