A Business in Singapore | Steps to Start a Business in Singapore
Budgeting | Businessby Priyadarshini 5 June 2023
Overseas vacations are still out of the question? And bosses believe employees have “nothing better to do” than be on call 24 hours a day, seven days a week! Resulting in people working even longer hours than before. So we don’t blame you for fantasizing about starting your own business. And saying goodbye to corporate life for good. In this blog, we discuss steps to start a business in Singapore.
A Business in Singapore?
The good news is that administratively speaking, Singapore is one of the easiest countries in the world to start a business in. However, putting a viable business idea into action is a different story. So, we tell you the steps that business owners must take.
Steps to Start a Business in Singapore:
Be Sure You’re Prepared
Many people fantasize about starting a business as a means of escaping a dreaded job. But, before you dive in, you should be aware that running a business is difficult. And full of difficulties. You must have a deeper motivation than simply wanting to leave your job. Or else the hardship will be a bitter pill to swallow. So, how can you tell if you’re ready? Carefully think about your motives. If you want to start a business because you hate your job, want to make more money, or believe that running a business will be easier than working, you may not be ready unless you plan to work freelance in a field you’re already familiar with.
So you’ve come up with a great business idea and devised a fail-proof strategy. You now need to raise some funds in order to make your dreams a reality. First and foremost, you must determine how much capital you require. This varies greatly depending on the size, scale, and nature of your business. Some small bootstrapped businesses may only require a small amount of capital to get started.
Some businesses, on the other hand, such as brick-and-mortar retail stores or F&B establishments, can be very capital-intensive and require a six-figure sum. If you don’t have enough savings, you can try crowdfunding platforms. Also, there are many government programmes that provide funding to first-time entrepreneurs. There are also a number of Startup SG Founder grants available for new businesses.
Register Your Business
Registering your business is one of the most crucial steps. You have the following options-
- Company ($300) – This structure allows you to create a separate business from the owners. As a result, any debts and liabilities incurred by the business are distinct from the owners’.
- Sole proprietor ($100) – If you’re a one-man show, this is the easiest business entity to set up. However, it also implies that you are personally liable for any debts or liabilities incurred by your company. Excellent if your business does not necessitate a large investment, such as if you are a home-based private tutor.
- Partnership ($100) – This type of structure is for two or more people who want to start a business together and agree to be personally liable for the business’s debts and liabilities.
Get a Business Bank Account
You’ll need to open a business bank account unless you’re a sole proprietor and are content with receiving payments in your personal account. You should compare the monthly maintenance fee, as well as any minimum initial deposit or minimum balance/fall below fees when weighing your options.
Set Up Your Workspace
When you incorporate your company, you must include an office address where mail can be received (including lots of junk mail). This does not imply that you must rent a separate office space. If your company does not require an office, you can “rent” an address from a virtual office. Legitimate office space will most likely be required for a larger scale business. In addition to renting or purchasing office space, you may want to consider renting a space in a coworking space that provides business addresses.
Pay Your Taxes
In contrast to income tax, the deadline for corporate tax e-filing is in December rather than April. As a Singapore tax-resident company, you will pay a flat rate of 17 percent. If your annual revenue is less than $5 million and you have no chargeable income for the year, you are exempt from filing a tax return. This would apply to start-ups that have yet to break even. For the rest of us, the government always makes it as simple and convenient as possible to pay them money. So, depending on your annual revenue, all you have to do to file your taxes is log into IRAS’s myTax Portal and submit the online Form C or Form C-S.
If you have been dreaming of becoming your own boss then, take clues from our guide and start a business in Singapore.
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