How to Start Business in Singapore

In such a small amount of time, the small island of Singapore has risen to the highest ranks in the World Bank’s most ideal places to do business. Since 2013, it has kept its position on top and seems to be intent on maintaining this.    

The World Bank’s report even goes as far as saying that it would only take 48 hours to start a business in Singapore. What a dream for business owners, is it not? You could start a business with no hassle and as quick as a snap. 

If this does not seem like a dream enough, it is also reported that Singapore has the best business laws, the most flexible immigration policy, and simplest procedure for filing taxes. In addition, it has also an impressive regulatory efficiency and well-preserved economy tax which attracts many business aspirants to start in the country. 

Following this simple guide would help you start up a business in Singapore. 

Starting a Physical Company in Singapore

1. Choose your identity.

Applicants can easily decide on their company name by checking the Accounting and Corporate Regulatory Authority, also known as ACRA online portal. Usually, businesses register under “private limited companies” because of its scalability as well as the added benefit of shareholders not being held liable for debt and losses that exceed their share capital. Thus, your company would be acknowledged as a taxable business. 

However, be aware that there would be a $15 approval fee for the business name. The process should only take about an hour for approval. The following should also be noted for acquiring a business name:

• The name should not be similar or closely-related to other existing businesses in Singapore 
• Chosen name does not abuse any trademarks
• Company name should not be made up of offensive or vulgar language
• The name must have not been used by or reserved for another company

Business names can be reserved for up to 4 months upon approval. Although, if it is not used within this timeframe, another company may opt to use it. 

2. Register and set up your company. 

Remember that a private limited company is governed by the Singapore Companies Act. Thus, it must observe the laws under ACRA and the Inland Revenue Authority of Singapore or IRAS. The following must be practiced:

• An ACRA approved company name 
• A minimum of one shareholder
• A minimum of one Singapore-residing director
• A minimum of one Singapore-residing company secretary
• A paid-up capital of at least $1.00
• A registered physical office address that is required for every shareholder and officer of the company 
• Insurance registration required by the Work Injury Compensation Act (WICA) of Singapore 

Since the business is new to Singapore, it must have a business profile purchased from ACRA. This profile would be an electronic report that includes information regarding the business which includes registration number, registration date, shareholders, and the like. It would also be mandated to start a corporate bank account and apply for required licenses and permits while searching for potential business partners. 

All documents during the company registration process must be in English or have an official translation to English. Hiring a Singapore corporate service provider is also allowed and encouraged. The succeeding documents are also needed to be submitted to ACRA: 

• Company Constitution: ACRA would provide a template for the Company Constitution or Articles of Association which would ensure the security and fair treatment of all companies and parties involved in the business
• Signed Consent from Directors: This consent form would detail that directors consent to acting as a director for the company
• Signed Consent from Company Secretary: This consent form would detail that the secretary consents to acting as the secretary for the company

Once all of these documents have been completed and submitted online to the ACRA portal, it would take up to 60 minutes before the registration is approved. However, the process may take longer if there is more verification required from other government entities. This company registration process has a fee of $300. 

Upon the full registration of the company, the ACRA would then provide the business with a Certificate of Incorporation and a company business profile (Biz-Profile/Company Extract).

3. Open a bank account. 

After the incorporation of your company, you may proceed to opening a bank account. There are several local and international banks to choose from that would best support your business. 

Processes Following Incorporation

Sometimes, more processes come up post-registration. It is best to be prepared for them. These include: 

1. Acquiring licenses and permits from government authorities for businesses such as private schools, video companies, liquor distributors, lending agencies, childcare centers, importers, banks, insurance companies, among others.
2. Registering office address and office hours (which must meet the minimum requirement of three hours per weekday). 
3. Incorporating your Accounting and Corporate Regulatory Authority-issued registration number on all documents utilized in official business transactions and communications.
4. Registering your business with the Customs Bureau if the company is involved in export and import of goods and services. 
5. Registering for Goods and Services Tax which involves importing goods into Singapore. This must be done if the company reaches annual taxable revenue that exceeds a million US dollars per year. 
6. Registering with the Singapore Central Provident Fund which is a mandatory pension fund scheme that is contributed to by employers and Singapore citizens or permanent resident employees, using a percentage of their monthly wages. 

Government Support Programs 

In times of need of financial aid, the Singapore government offers government aid programs that help financial pressures. These include: 

1. Jobs Support Scheme (JSS) 

The government will co-fund a specific amount of gross monthly salaries paid to every local employee for 9 months. 

2. Foreign Worker Levy Waiver and Rebate

Employers will be allowed to apply for a rebate of up to 750 US dollars for Work Permit holders employed in 2020. 

3. Enhanced Property Tax Rebate

Property owners of non-residential can apply for a property tax rebate ranging from 40% reaching up to 100% which depends on the type of property

Conclusion

While business setup has been made easier in this day and age, starting a business in Singapore still comes with its own set of policies and procedures. Hence, you need to find a reliable corporate service provider to deal with these arduous procedures without a hitch. One day, you would be able to look back and thank yourself for being able to solely focus on the growth of your business. 

As always, if you’re looking to up your business game and garner the most benefits Singapore can offer, do your research and seek for professionals who can help you out.