Singapore is considered to be an ideal location to run any business mainly because of the country’s growing economy, political stability, strategic location, as well as favorable government policies. It is imperative to consider several things prior to company incorporation in Singapore which will prove to be beneficial in the long run. Business owners can also apply for grants for starting a business in Singapore. In fact, you are required to take a number of essential steps to start business in this country which might range from choosing a business structure to finding a suitable location and employing the proper accounting services. Starting a business in Singapore for foreigners is also relatively easy. Listed below are some important guidelines.
1. Select a business structure
While setting up your business in Singapore, it is imperative to identify the type of legal entity that you wish to form. You have many options in front of you and several of these can be:
- sole proprietorship
- limited partnership
- limited liability partnership
Make it a point to choose a structure which aligns with your financial capability as well as business targets. A sole proprietorship will definitely be a good option in case you are self-employed and would like to register business in Singapore. Nevertheless, it is essential to form a private limited company in case you do have plans to grow your business in near future and would like to safeguard your personal assets in case of any legal claims.
2. Be aware of licensing requirements
You must have a license for running a business in Singapore. You must apply for licensing after registering your business with ACRA (the Accounting and Corporate Regulatory Authority). Different types of licenses are required for various types of businesses in Singapore. It is possible to find out all the particulars regarding the licensing requirements for company incorporation by visiting the website of OBLS (Online Business Licensing Service) in the past. However, the OBLS website was decommissioned recently. Business owners can visit LicenceOne for licensing matters instead. According to your niche, you might require obtaining more than one license from various authorities. For example, licensing requirements for a law firm and an accounting service provider will not be the same.
3. Get an address
Your business ought to have a local address for registration. Depending on your services, products and target market make it a point to find a proper location for your business. After renting a premise, you will be able to get permission from URA (the Urban Redevelopment Authority) for commercial use.
4. Manage your accounts and finances
Most of the startups do not succeed because of poor cash flow, deficiency of funds as well as accounting errors. Ensure that you do not leave any possibility of errors in this particular area. First of all, personal expenses must be separated from business expenses. For this, you can always open a fresh bank account for your business transactions and use cloud accounting tools and services to monitor all the commercial transactions. In this way, your team members and employees will be able to enter any expenditure which is incurred from any remote location. If required, they can also upgrade your accounting information from virtually any location provided they’re connected to the web. Your management team will be capable of making business decisions by accessing to the most recent accounting data which will ultimately minimize any risk and also ensure business development.
Furthermore, it is essential to comprehend the particulars regarding your tax obligations and also keep an amount aside for any unforeseen situation. For this, you can hire a recognized accounting services provider to outsource all your bookkeeping tasks in Singapore.