Singapore is the place to launch a startup. Over the past decade, the number of active young companies rose from 23,000 in 2004 to 55,000 in 2014. Are you an aspiring entrepreneur who is wondering how to set up your business in Singapore? Let us take you through this process:
Registering your business in Singapore
1. Now that you have your idea that deserves a Nobel Prize, give it a name. While there are no hard and fast rules that define good business names, it’ll sure help to avoid some of these mistakes highlighted on Entrepreneur.com.
2. Determine the type of business entity e.g. sole proprietorship, partnership, limited partnership, limited liability partnership, private limited, etc. that best suits your needs. They differ in terms of the number of partners, personal exposure to financial liabilities of the business, tax obligations, ongoing administrative costs for record keeping purposes, etc.
Learn more about incorporating your business in Singapore. Download this free eBook:
3. Obtain a physical location as your registered address. This can be done through selected Company Secretarial service providers and/or co-working spaces. You can even apply for a home office licence on LicenceOne if you prefer to grow your business in pyjamas from your HDB! It costs S$20 for a 5-year licence (subject to HDB/URA regulation).
4. Registering the business on BizFile is the major milestone that marks the official start of your business. At a small fee (depending on the type of company you set up), you can register your business for the period of one year. Check out ACRA’s FAQs for further details. You’ll need a SingPass for this, so if you don’t have it yet, get it here!
5. Setting up a corporate bank account involves careful consideration of the following cost factors to determine the bank and type of account that best fits your business needs:
- Initial deposit,
- Monthly account fees,
- Set-up fee/BizFile search fee,
- Security token fee,
- Bank counter usage limitations and penalty,
- Monthly minimum balance requirements and penalty, and
- Cheque book charges.
Start operating as a Company
3. Rent a co-working space where you’ll find great minds to share a beer after a hard day’s work.
Related reading: Looking for office space in Hong Kong? Here are some tips
4. If your office space is cramped, Utilise external storage providers. Documents, marketing materials, product stock take a lot of office space and reduce your working area. Just choose a storage solution with the latest technology through an app. This takes the hassle away by providing pickup and delivery services as well as paying for storage on a per item basis. Have access to all your items with one click in the app. It’s the most convenient storage solution in Singapore.
Storage solutions like BEAM offer such services (use the promo code DRAGON for a month’s free storage!).
Apply for Mentorship & Funding to Support the Business Operations
1. SPRING Singapore grants include an ACE startups grant where SPRING will match S$7 to every S$3 raised by the entrepreneur for up to S$50,000. The grant will be disbursed over 2 to 3 tranches when pre-determined milestones are reached. So get your business plan ready!
2. National Research Foundation – Early Stage Venture Fund supports Singapore-based technology startups.
3. Venture capital firms provide invaluable mentorship made possible through their deep-set industry knowledge and extensive network. Additionally, they provide funds in exchange for equity.
This a guest contribution submitted by BEAM Blogger, Isabelle Onn. The views expressed here are of the author’s, and Dragon Law may not necessarily subscribe to them. You, too, are invited to share your point of view! Learn more about guest blogging for Dragon Law here.
More about BEAM
BEAM is a revolutionary self-storage service provider based in Singapore that empowers consumers and businesses to effectively manage their storage needs via an App.
BEAM makes self-storage convenient, cost-effective and fuss free and helps people enjoy their living and working spaces. We combine superior customer service with innovative technology to provide the best customer experience in the storage industry.