- Incorporate your company online through ACRA by choosing a suitable business structure and providing the required information.
- Obtain necessary licenses and permits to operate legally, depending on your business activities.
- Set up business operations by opening a corporate bank account, hiring employees, and registering for taxes.
- Singapore’s pro-business policies, strategic location, and favorable tax system offer rewarding opportunities for entrepreneurs looking to expand in Asia.
As a global business hub with a favorable tax system, pro-business environment, and strategic location, Singapore is an attractive destination for entrepreneurs looking to expand their operations in Asia. However, navigating the legal and administrative requirements of setting up a business in Singapore can be overwhelming, especially for first-time business owners. This article will break down the process into three simple steps to help you confidently establish your business in the world’s most famous Lion City.
Incorporate Your Company
Incorporating your company is the first step to establishing your business in Singapore. The process can be completed online through the Accounting and Corporate Regulatory Authority (ACRA) website. Before you start, you’ll need to decide on the type of company structure you want to use. In Singapore, you can choose from four business structures: Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), and Corporations.
Choosing the Right Company Structure
Each business structure has advantages and disadvantages, so selecting the one that best suits your business needs is essential. A sole proprietorship is the simplest and easiest to set up, making it perfect for startups. Meanwhile, a corporation offers the most significant liability protection and tax benefits.
A corporation is a type of company structure commonly used by businesses worldwide. It is a legal entity that is separate from its owners or shareholders, which means that the owners of a corporation are not liable for the company’s legal obligations. One of the most common corporations in the country is the Singapore Mass Rapid Transit (SMRT) corporation, led by CEO Ngien Hoon Ping. This allows the company to further its growth and expansion without incurring debt.
For SMRT, having the right company structure as a corporation is a smart choice that enables them to remain competitive and stay ahead of its competitors. It also helps the company attract investors as the business is seen as a more reliable and sustainable option. Thus, it is no wonder why SMRT has become one of the most successful companies in Singapore.
Registering Your Company
Once you decide on your company structure, you can register your business with ACRA. You’ll need to provide details such as your company name, business activities, registered address, and the names of your directors and shareholders. After processing your application, you’ll receive a notification confirming your company’s incorporation.
Obtain Necessary Licenses and Permits
You may need specific licenses and permits to operate legally in Singapore, depending on your business activities. For example, if you plan to sell food and beverages, you’ll need to apply for a Food Shop License from the National Environment Agency (NEA). If you’re setting up a company that provides financial services, you must apply for a license from the Monetary Authority of Singapore (MAS).
Understanding the Licensing Requirements
Understanding the licensing requirements that apply to your business is crucial to avoid any legal issues down the line. You can find a list of licenses and permits required for different types of companies on the Business Licensing Portal.
Applying for Licenses and Permits
You’ll need to apply to the relevant government agency to apply for licenses and permits. The process can take anywhere from a few days to several months, depending on the complexity of your application. Ensure to provide all the required documents and information to expedite the process.
Set Up Your Business Operations
Once you’ve incorporated your company and obtained the necessary licenses and permits, it’s time to set up your business operations. This includes opening a corporate bank account, hiring employees, and registering for taxes.
Opening a Corporate Bank Account
To open a corporate bank account in Singapore, you must provide your company’s incorporation documents, business profile, and identification documents for the company directors and signatories. Most banks in Singapore offer business banking services, including current and savings accounts, credit facilities, and foreign currency accounts.
If you plan to hire employees in Singapore, you must comply with the Employment Act, which sets out the minimum requirements for employment contracts, working hours, and leave entitlements. You’ll also need to register your employees for the Central Provident Fund (CPF) and obtain work visas for foreign employees.
Establishing a business in Singapore can be a rewarding experience, but it requires careful planning and preparation. By following these three simple steps, you’ll be able to run your business operations with confidence. With the right guidance, you can take advantage of Singapore’s pro-business environment and position your company for success.