A Framework Towards Starting Your Own Business in Singapore
Singapore is a global commercial hub with enormous business opportunities. As a result, many foreigners are flocking Singapore to grab these opportunities. Therefore, if you’re contemplating starting your own business in Singapore, you need to know how to go about it. But before putting pen to paper, do your groundwork. Survey on the market dynamics, your business idea relevance before conceptualizing your idea into the business plan.
With that in mind, here is a guide to starting your own business in Singapore:
Establishing Your Business Structure
Before starting your own business in Singapore, it’s essential to look through your business structure. Get to understand your business structure whether it’s a company, Partnership or Sole Proprietorship to be sure of which direction to follow. This is because your business structure influences several attributes of your business: your creditworthiness, personal obligation, and your trustworthiness in the eyes of the customers.
For example, if you decide to go for Sole Proprietorship or Partnership the formalities as minimal. You’re only subject to personal taxes as a tax obligation. However, the setbacks for both types of Proprietorship is that you bear all the liabilities. In the event you encounter any legal claims, you stand a risk of losing your assets.
For a company, the requirements are straightforward and strict; but it’s the safe haven for getting qualified professionals, better credibility from investors, customers, and chances of landing a loan. Other benefits include accessing tax discounts and incentives from the government. In Singapore, a newly launched Private Limited company enjoys free corporate tax exempt for the first S$100,000 of their profits and pays half corporate tax for the subsequent S$300,000.
Seek Financial Support on Capital
Before starting your business in Singapore, know whether the capital you have is sufficient enough. But if you find yourself lacking, don’t beat yourself up. Singapore has schemes that offer grants, especially to small businesses. These schemes are under the hospice of SPING (Standard, Productivity and Innovation Board). The SPRING provides grants to startups offering innovative, viable ideas.
Professional Domain Networking
Networking your business is a journey towards success if you’re contemplating starting your own business in Singapore. What’s important is doing the right form of networking. One avenue is professional networking. The process begins by seeking clarity on the forms of small business you’re planning to start. You may begin by being a member of a trade association through registration. While you do that, involves yourself in business exhibitions, trade shows, and seminars to learn insightful concepts about your industry domain. Get entangled with other professionals and learn from their experiences.
Physical Commercial Space
Commercial-spaces in Singapore come in abundance with competitive prices. If you’re starting your own business in Singapore, you must have a proper plan. Commercial-spaces in Singapore are expensive. Therefore, do your research before making that bold move. Office premises define your personality. Your creditors, investors and potential customers will develop trust in you and what you’re offering. No one wants to waste time searching for information about your business location much less your services.
In case you’re a foreigner planning starting your own business in Singapore you must meet several requirements. Here’s a short guide on how to go about it:
- Get an employment pass: for foreigners, this pass is eligible for 1 to 2 years procured through the Ministry of Manpower (MOM). All you must do is to ensure that your details are authentic. After that, you apply for the EntrePass.
- Register a legal business in Singapore: when registering your company ensure it is legal. It must be a Private Limited Company and not operating within six months since its application. As a foreign applicant, your shares in the company must not be more than 30 percent and a minimum paid-up capital of S$50,000.