7 Simple Steps to Set Up a Business in Singapore
Thinking of starting your business in Singapore? The beautiful and diverse island city-state is excellent for growing your business. After all, it leads ASEAN in terms of ease of business, has the highest density of millionaires worldwide, and is home to some of the biggest blue-chip companies ready to partner with startups.
Whether you're a tourist or an expat living in Singapore for work, there are many opportunities for you to start your own business there. Read and learn more about setting up a business in Singapore and begin your journey as an entrepreneur by following these seven simple steps:
Step 1: Research your idea and the market
Starting your business is a big decision before you take the plunge. You need to ensure that your idea is viable in the marketplace and that you're not setting yourself up for failure. You should do a few things to check whether your idea is marketable and can generate profit.
First, research the demand for the product or service you want to offer. If there is a high demand, you're more likely to succeed because you'll have less difficulty finding customers. When researching the demand for your product or service, you should include local and global markets.
You can also seek expert advice from leading business advisors like A1 business through their website a1corp.com.sg. They offer expert advice to startups on navigating their entrepreneurial journey-from business registration to all other aspects of setting up a business in Singapore.
Step 2: Raise capital
>Raising capital is the second step in setting up a business in Singapore. You can do this by applying for government grants, going to a bank for a business loan, applying for equity crowdfunding, or finding an investment partner.
Whichever option you choose, ensure you've done your due diligence and have a solid business plan before asking for funding. If you get an investment partner, you should put together a shareholder agreement that outlines the terms of the partnership that protects your interests.
Step 3: Find the right location for your business
Next, you need to find the right location for your business. When choosing a location, you should consider factors like proximity to your target market, the availability of utilities like water, electricity, gas, and internet, and the level of crime in the area.
You should also ensure that the location aligns with your business plan. When you're choosing a site, the first thing you should do is to make a list of places that you feel are right for your business. You can then narrow down your options and select one area to focus on.
You can use websites such as propertyguru.com.sg or real estate agents to find properties for sale.
Step 4: Register your business
Once you've researched and picked the perfect location for your new business, it's time to register your business. You can apply for a company name and an IR number. You can apply for a company name through the Companies Act, and if your name is accepted, you'll be issued a certificate of incorporation.
Your IR number will be your business identifier, so make sure you apply for the correct IR number for your sector and industry. Once you've applied for your company name and IR number, you need to set up a bank account for your business.
You can choose any bank, but you should pick one that is convenient for you and easy to manage, as you'll be doing a lot of banking for your company.
Step 5: Open a business bank account
When you've applied for your company name and have your IR number, you can open a bank account for your business. Bank accounts are essential for financing your business and paying your employees, so make sure you open the correct bank account.
When choosing a bank account, you should consider the terms and conditions of the account, the fees that apply to the account, and the type of service you'll receive. You should also look for a bank that offers competitive interest rates.
When opening a business bank account, you should bring your certificate of incorporation, your business license, and a letter of authorization from the person who owns the business. You can also apply online for instant approval.
Step 6: Incorporate your business and get a tax Id
Once you've registered your company name, applied for an IR number, and opened a business bank account, you can incorporate your business. You can do this through the Accounting and Corporate Regulatory Authority (ACRA).
You’ll then need to apply for an employer's tax identification number (EIN) and register for GST, as you're now an official business. You can do this by filling out an online form on the Inland Revenue Authority of Singapore (IRAS) website.
Once you've completed the above steps, you can begin hiring employees, opening your business, and generating revenue. You can also apply for other business grants and loans available to startups through the government and banks.
Step 7: Hire your employees and register them to IR and SS
Before hiring your employees and getting started, you must register them for Singaporean identity cards. You’ll need to register them for an IR (Identity card) and SS (Social Security) number.
You can apply for an IR and SS account through the Work Pass app. You need to apply for a Work Pass for each staff member. Once your employees have their identity cards and social security numbers, they can start working for your company.
Conclusion
Starting a business in Singapore can be an arduous and challenging journey, especially if you are a novice. However, if you follow these steps, you are likely to succeed. Before starting a business, ensure you have the skills and knowledge necessary to succeed. You also need to be prepared for long hours, late nights, and many challenges along the way.