Investment in Singapore for Beginners: How Can You Get Started Investing in Small Businesses in Singapore
The idea is that you already get started investing in small businesses in Singapore as soon as you realize that commerce is the field of the most potential in the country. Being a growing economy as well as one of the major business hubs in Asia, Singapore is a roadstead for those searching for a trademark of opportunities in the field of commerce. A business plan in the country could take you a long way if you know how to make it happen, this doesn’t need to be explained. But, every implementation starts with initialization, and many prefer to start small before taking big strives. And if you are one of them, here is how you could start investing in small businesses in Singapore.
Investment Opportunities Singapore: You Own Business or Investing in Others?
Before you get started investing in small businesses in Singapore, there are two things for you to consider. You could choose to start your own small business or spend on someone others businesses. For the second one, see below about how you can open a company in Singapore while for the other, you will have to look out for a business to invest in.
Even if some say crowdfunding websites could be an excellent way to go about it, it might not be a good idea. As most of these services require you to be an accredited investor, they are not so convenient for people looking to invest in a smaller business house. Being an accredited investor in Singapore means being a person with a net worth of at least S$2 million or an annual salary/ income of S$300,000. Also, there are investment thresholds in these sites, which might be higher than what you expect for someone looking to invest in a small business.
So, the alternative way is to build connections to be a prolific angel investor. While investing in a company, first look at their product or service. See if it fulfills the need of the people and has the potential to stand on its ground long-term amid the competitiveness of the Singaporean market. Also, see if it is unique and the office management is good enough to make the business plans come true. Don’t forget to take a sneak peek at their passion for business, also see if they have the right marketing strategies or techniques. As a side tip, a practical approach would be to start low and slowly move on to put bigger finances in the business.
Opening Your Own Business in Singapore
On the other hand, you could choose to register your own business in Singapore. It is a very easy thing to do and can easily be done online at Bizfile under the Accounting and Corporate Regulatory Authority.
For this, you will also need to register the type of your business. It can be any one of these.
- Sole Proprietorship: A single person running the business with all rights to the finances. The personal finances are directly related to the liabilities or profit of the company.
- Partnership: It is similar to the sole proprietorship, but in this case, multiple people are running the company. The financial rights are according to the agreements, and there can be a maximum of 20 partners.
- Private Limited Company: Registered as a private limited company, your business house will be a separate legal entity. There are terms such as office, CEOs faculty, bankruptcy, etc.
After that, you will need to propose a name for your company. The name can’t be promoting any vulgar behavior, and can’t be too similar to an existing company in Singapore.
Of course, you can conduct illegal businesses.