It is not easy to start a business in Singapore as in any other country worldwide. Although Singapore is a very business-friendly country for starting your own business, there are a few things an entrepreneur should consider before getting started.
- Raise capital
So, you’ve got a great business idea and a fail-safe strategy. You must now raise funds to make your dreams a reality. First and foremost, you must determine how much capital you require. This varies greatly depending on your business’s size, scale, and nature.
Some small, bootstrapped businesses may only require a small amount of capital. A sole proprietor, for example, who is starting a small business to promote their services as a private tutor, music teacher, web developer, or illustrator may be able to rely on personal savings to get started.
Some businesses, on the other hand, such as brick-and-mortar retail stores, can be very capital-intensive and require a six-figure sum.
If you don’t have enough savings, here are a few options for raising funds:
- Loans: This is relatively straightforward, but the disadvantage is that it places you in debt. Significantly, make sure to compare interest rates among banks and financial institutions.
- Venture capital and angel investors: You can approach venture capitalists and angel investors to see if they are interested in investing in your company. However, before accepting an offer, you should research to ensure that you understand their terms and conditions and that their values align with yours.
- Fundraising: Crowdfunding platforms such as FundedHere, Kickstarter, Fundnel, and Indiegogo can assist you in raising funds from the general public.
- Family and friends: You can ask those close to you to invest in your company. However, please ensure they know the risks involved and that both parties understand how the investors’ return on investment will be paid out.
- Government schemes: The ACE Startups grant provides financial assistance to first-time entrepreneurs. There are also several Startup SG Founder grants available for new businesses.
- Register your business
The most crucial step in starting a business is registering your company. Before beginning business, operations, or hiring employees, all aspects of your business, from the name of your company to the details of the Board of Directors, must be registered with the Accounting and Corporate Regulatory Authority of Singapore (ACRA).
After registering your company in Singapore, you can proceed to apply for all necessary permits to start your business. Your job will be easy if you use reputable and reliable company registration services in Singapore.
However, since business registration is a complicated process with specific documents needed and a procedure to be followed, you can opt to consult with a1corp.com.sg. This will help understand the process more and effectively handle the registration process.
- Choose the business activity type.
You may already know what to do if you want to start a business. ACRA wants to know, too, so it will ask you to choose and submit an SSIC code. It describes what your company does and where it operates.
- Procure the necessary permits
Before starting your company or small business, you may need to obtain the necessary permits. You must conduct extensive research to learn more about the licenses required for your business.
However, one of the Singapore government’s online branches helps business people determine how to start their own business in Singapore. As a result, the Singapore government has taken every possible step to ensure that starting a new business runs smoothly.
- Set up office
The survival of your business must find the right location from which to operate. While opening an office in any other country can be difficult, this is not the case in Singapore. The Singapore government has invested in several large business parks throughout the country, which can serve as an ideal stage for the launch of your company. With all of these business parks in Singapore, you will have no trouble finding an appropriate space for your office.
- Recruit employees
Lion Capital has made every effort to ensure startup businesses have special access to a steady supply of qualified and well-trained professionals. The Workforce Development Agency (WDA) will establish a jobs bank to make it easier for new businesses to find and hire employees.
You may also need to become acquainted with your obligations as a Singaporean employer under the country’s Employment Act. For example, you must pay them within a week of their salary period and provide them with medical leave and rest days. You should also obtain medical insurance coverage to cover your employees’ health care needs.
- File relevant taxes
If you believe starting a new business in Singapore will result in double taxation, think again. The country has detailed agreements to avoid double taxation with over 73 countries.
The Singaporean government provides such benefits in the expectation that entrepreneurs will pay their taxes on time. You can also hire the services of an experienced tax consultant to help you manage your taxes and pay them on time.
The preceding discussion may have enlightened you on conducting business in Singapore. Significantly, some prerequisites for success as an entrepreneur in Singapore include unwavering grit, determination, and proper clarity of vision. However, many startup businesses fail because their owners fail to recognize the commitment and legwork required for success. On the other hand, Singapore is an excellent place to see your ideas mature into actionable plans if you have the right mindset.