It should come as no surprise that establishing a business is simple in the lion city since Singapore is ranked second in the globe for corporate-friendly jurisdictions. This article will give you a thorough explanation of the business registration procedure, including the documentation you’ll need, the amount of initial money needed, and the many company structure options.
Points to starting a business
Here is a step-by-step explanation of the procedure that firm owners must follow.
Be certain you’re prepared
Many people imagine starting their own business as a chance to leave a job they despise. But before you go in, you should be aware of how difficult and complex it is to run a firm. The suffering will be a tough pill to chew if your motivation is limited to just wishing to quit your work.
Before acting, you should make sure your plan is sound and gather the knowledge, resources, and advice necessary for success.
Raise capital
You must first assess the amount of capital you require. Depending on the size, scope, and nature of your company, this can vary greatly. You can use resources like loans, government programs, crowdfunding, etc. if you don’t have enough savings.
You can raise money from the public using crowdfunding websites like Kickstarter, Indiegogo, FundedHere, and Fundnel. New entrepreneurs can receive funding from ACE Startups in the country. Additionally, there are several Startup SG Founder awards available for start-up companies.
Register the business
You must pay $15 to acquire a corporate name to register the firm. If your company name is accessible and does not include profane words, it will be accepted. Your legal unit can then be incorporated after that.
You must choose the kind of company entity you want to incorporate; the following are the most likely choices:
- Sole Proprietor
This kind of business structure is the least complicated choice if you operate as a one-man operation. It also implies that you are responsible for any debts that your company accrues.
- Partnership
This kind of organization is used when two or more persons start a firm together and decide to be fully accountable for any debts or liabilities the business incurs.
Create a corporate account
You must establish a corporate bank account unless you’re a sole entrepreneur and are fine with getting paid into your private account.
You should examine the monthly service charge, any required minimum starting deposit, and any fall-below fees while weighing your options.
Most institutions in the nation provide corporate bank accounts, however, two of the more prominent ones are the Maybank FlexiBiz Account and OCBC Corporate Account, both of which have no cash deposit or fall beneath costs.
Submit your corporation tax
In contrast to income tax, the company tax e-filing date is in December rather than April. As a Singaporean tax-resident corporation, you will pay a flat rate of 17%.
You don’t even need to file a tax return if your annual income is under $5 million and you had no earnings during the tax year. This would apply to start-up companies that haven’t yet achieved profitability.
Benefits of starting a business in Singapore
Singapore is a highly developed country with a strong economy, a stable political environment, and a business-friendly environment. As a result, there are numerous benefits to starting a business in Singapore.
The first major benefit of starting a business in Singapore is that it is a highly corporate-friendly environment. Singapore has a low corporate tax rate, a strong legal system, and a wide range of incentives for businesses. Additionally, the government is very supportive of entrepreneurs and provides a range of resources to help them succeed. This includes grants and funding, as well as access to a wide range of corporate services.
Singapore has a highly educated population, with many of its citizens having tertiary qualifications. This makes it easy to find qualified employees for any business. Additionally, Singapore has a large expatriate population, meaning that businesses can access a diverse range of skills and talent.
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