6 Simple Steps Required to Set Up a Business in Singapore

start a business in singapore

There’s nothing quite like growing a business from the ground up. It takes time, patience, perseverance, and a little bit of luck. Even after all the foundation is laid, the work isn’t done. Keeping a business running takes just as much, if not more, gumption. So kudos to you for getting the ball rolling and trying to figure out how to manage your soon-to-be company. The following will explore the initial steps required to get your business up and running. In particular, we’re going to focus on starting up a business in Singapore.

Why Singapore?

There are dozens of countries in the world with legal and tax systems designed to support business owners and encourage flourishing. Singapore had consistently been at the top of this list for the last several years. The country offers a stellar, central location in the southern hemisphere that is positively connected to many other hotspots with high-quality infrastructure. The position is particularly stellar for businesses hoping to tap into the Asian and Middle Eastern markets.

More than this, according to www.pilotoasia.com/, Singapore is well known by entrepreneurs for how easy it is to set up and conduct business within. Intellectual property rights are strictly protected in the country, and there are very few legal requirements to set up your business there. As well, the tax schemes and existing trade deals keep the majority of your profits in your pocket. A Singaporean location can help reduce the taxes you owe and can limit the number of times you’re paying double tariffs (or sometimes, even single tariffs as Singapore has a fair few free trade deals).

Given all these business-encouraging benefits, many are predicting that Singapore will continue to be one of the world’s leading business hubs. Even during the pandemic, businesses were making the switch to a Singapore home base.

Step One: Business Plan

Of course, no matter where you’re starting your business, you’ll need to have some sort of plan or strategy in place. Many entrepreneurs cite the business plan as one of the most important aspects of a business’s success. Your plan should include well-outlined long-term objectives detailing the products and services you’d like to present to the public, as well as a clear picture of who your audience or customer base is. You’ll also want to indicate what markets you’re planning on serving and what intermediary steps need to be taken to meet these objectives. Take some time to identify the best time to open up your business, your pricing model, and how you’re going to readjust any parts of your plan that need to be reconciled with new information or unanticipated results. Part of your plan will include where you’re going to base your company. Be sure to read up thoroughly on the laws and regulations for the type of work you plan on doing in the area that you want to work in.

Step Two: A Shareholder And A Dollar

The next step is to figure out what you need to get your business legally existing. Depending on your industry, you might want to include capital, products, employees able to offer your service, and licenses. When it comes to registering your business in Singapore, there are a few additional criteria you need to meet. First and foremost, you need at least one shareholder and at least one dollar in capital.

The single shareholder can be yourself. If you’re starting the business with partners, they can also be included (multiple shareholders are, of course, allowed). If this is the case, be sure to agree on the percentage of the company each shareholder owns early on. This will keep things from bottlenecking and slowing later on. Negotiations can take a long time if they’re needed, so best get those out of the way now.

Step Three: Company Secretary

To legally start a business in Singapore, you’re also going to need a company secretary. This position needs to be filled within six months of incorporating and must be fulfilled by a local resident in Singapore. You can go about hiring your own secretary or use a service designed to help foreigners start up Singaporean businesses that pairs you with a secretary. You can expect this to cost around $300 per year. This being said, if you have additional skill sets required of your administrative team, it might end up costing you more.

Step Four: Find A Local Resident Director

You are welcome to have multiple directors for your company. Legally, they must be people (we shouldn’t have to say that, but you’d be surprised what people have tried) who are at least 18 years old. One of these directors (or the only one if you want to keep things simple) must be a local Singaporean resident. This means someone who is a citizen of Singapore, a permanent resident of Singapore, or a holder of an entrepreneur pass or employment pass. Again, you can go about hiring your own director or use a service designed to pair businesses up with a Singaporean director. You can expect this to cost somewhere around $1500 per year, but as with any position, the cost can increase if you require highly specialized skills or unusual experience.

Step Five: Secure A Singaporean Address

Depending on the scale of your business, this might be as simple as a mailbox or as complex as a multi-story building. Read through your strategy as you seek out the right address to host your business. Like with the above points, there are services available that can help find you a Singaporean address to help facilitate business growth. Of course, you’re welcome to take your time and shop around until you find the right site for your company’s needs.

Step Six: Apply For Business Registration

Once you’ve sorted out the above things, you’re ready to apply for incorporation. This can be an incredibly quick process in Singapore, sometimes taking only a day. Of course, certain industries need approval from government agencies, in which case the process could take longer.

The above tips should have given you an outline that can take you from having a business idea to having a Singaporean legal corporate entity from which you can operate your business. Be sure to consistently reevaluate your business strategy to ensure that you’re staying flexible and adjusting to new information and trends.