Starting a company in Singapore can feel daunting, but the process is straightforward if you know what to expect. You’ll need to decide on the business structure, register your company with ACRA, consider financing options, factor in legal and taxation requirements, conduct market research, and work out competitor analysis and planning. However, those who make the right decisions and take the necessary steps can set themselves up for success in this global economic hub.
The first consideration for entrepreneurs is choosing the right business structure for their needs. There are several options, including sole proprietorships and partnerships, private limited companies (PLC), and LLPs. A PLC offers the most protection to shareholders and is the preferred choice for many businesses, especially those that intend to grow or expand their operations. An LLP is a popular option for professional services firms.
Your next step will be to draft a constitution for your company. This is an important document that defines your company’s values, expectations, and processes when faced with challenges. It should also include your company’s share capital, liability, and directors. You may also want to include details of the business activities you will undertake, as some industries require approval or a licence from government authorities before commencing operations. These include private schools, video companies, travel agencies, importers and wholesalers of liquor, financial advisers, and banks.
You will need to register your company for GST (Goods and Services Tax). This is a standard tax that is charged at 8% on most goods and services sold in Singapore. To do so, you must have a valid registered business address and provide the ACRA with soft copies of your Certificate of Incorporation and Company Business Profile. setting up a company in Singapore