Every country has its own unique set of rules and regulations for starting a business. This is especially true for Singapore, which is widely known as a business-friendly country. You must be familiar with the company incorporation process in Singapore before starting a business here.
If you’re planning to set up a new business, you need to know all the legalities involved in registering a company in Singapore. It’s also important to clearly understand the business landscape and the potential challenges you may face.
Over 45,000 businesses were registered in Singapore alone last year, equating to about one for every 100 people. According to reports, approximately 7% of the country’s population engages in entrepreneurial activity, and they are on the list of the top countries in terms of business investment.
Why Start a Business in Singapore?
There are various reasons why starting a business in Singapore is good. For one, it has a very stable political environment conducive to businesses. The country is also known for its low tax rates and efficient bureaucracy, making it easy to set up and run a business here.
According to ACRA, there are over 400,000 registered business entities in Singapore. If you want to start a business in one of these industries, it’s essential to be aware of the competition. Many big companies are operating in the country, and you’ll need to find a way to stand out from the crowd.
What are the Steps for Setting Up a Business?
The process of setting up a business in Singapore is relatively straightforward. Below are some basic steps you need to take:
1.Decide on the Business Structure
Choosing the best business structure for your company is critical to its long-term success and growth. You’ll need to think about whether you want to set up a sole proprietorship, partnership, limited liability partnership (LLP), or company.
2.Register Your Company
You must follow some steps while registering a company in Singapore. The first step is to apply to the Accounting and Corporate Regulatory Authority (ACRA), where you’ll need to provide some personal information and your company’s name and registered address. You’ll also be required to have at least one shareholder and director.
The next step is to open a corporate bank account. This will allow you to start transferring funds and conducting business transactions.
3.Apply for a Business License
After you have registered your company, you will need to apply for a business license from the Singapore Economic Development Board (EDB). This is necessary for most businesses, with a few exceptions, for example:
– If your business is entirely web-based with no physical operations in Singapore
– If your business only provides services to other businesses (B2B)
– If your business is in the financial services sector
– If your business is a charity or religious organization
Once you have completed the above steps, you’ll be ready to start doing business in Singapore.
However, if you face any difficulty in the above process, you can hire an incorporation company in Singapore to help you with the registration. Prices typically start around S$1,100, if you are local to Singapore and increase a bit more if you are a foreigner.
These steps are essential to take when setting up a new business. Make sure you do your research and hire a professional to help you with the process to get your venture up and running smoothly.