3 steps to set up your new business

3 Steps to Set Up Your New Business in Singapore

Why do companies prefer to establish themselves in Singapore?

Singapore is ranked as the finest country to do business in by the World Citizenship Report. The Lion City’s appeal as a business haven is underpinned by its robust infrastructure, favourable business environment, and strategic geographical location, making it a preferred choice for entrepreneurs globally.

Embarking on a business venture in Singapore entails a well-defined process that can be seamlessly navigated with the right approach. Therefore, we will delve into the essential steps for establishing your business in Singapore and explore why this thriving hub is a magnet for enterprises.

Why is Singapore popular Among Businesses?

Singapore’s allure for enterprises is multifaceted, attributed to several key factors:

  • Low Taxes

The corporate income tax rate in Singapore is only 17%. If a company is a new startup, it may potentially benefit from tax exemptions and initiatives.

The Startup Tax Exemption Scheme and the Partial Tax Exemption Scheme are two examples of such initiatives. Additionally, you can benefit from its Double Taxation Avoidance Agreements (DTAA) to avoid paying additional taxes. It will be helpful if you are seeking business prospects and investments that go beyond Singapore.

  • Superior Infrastructure

The Lion City holds the top spot on the CMS Infrastructure Index and is a well-known regional infrastructure hub. It has a robust infrastructure ecosystem, which includes policies for investments, connectivity, political stability, and transportation.

  • Doing Business is Simple

In Singapore, establishing a business with incorporation services Singapore is streamlined and efficient. Your initial paid-up capital only needs to be S$1, and other basic requirements that you must meet are described below.

If there are no problems, your firm can be formed in about 1-3 business days, which makes the process quick and simple.

  • Pool of Local and Foreign Talent 

Businesses setting up in Singapore can feel secure knowing that they have access to a pool of both local and foreign talents. The nation’s initiatives to bolster its status as a talent hub further elevate its appeal to businesses.

3 Steps for Establishing a Business in Singapore

Step 1: Identify Your Business Structure

Choosing the appropriate business structure is essential since it affects your legal obligations, tax implications, and personal liability. Singapore offers a variety of business formats, each with its own set of benefits. The three most common choices are as follows:

  • Sole Proprietorship: The sole proprietorship business structure is appropriate for people who desire to act as the company’s single owner. It is simple to set up and has few regulatory requirements. However, the owner accepts full liability for the debts and responsibilities of the company.
  • Partnership: A partnership is an agreement between two or more people to run a business jointly. It enables the division of costs, obligations, and risks. Liability varies depending on the type of partnership, all members in a general partnership have unlimited personal liability, whereas some partners in a limited partnership have restricted liability.
  • Private Limited Corporation: An independent legal entity from its owners is a private limited corporation. It gives investors greater credibility, growth possibilities, and limited liability protection. While forming a private limited company is more challenging, it is sometimes the ideal option for businesses looking to grow over the long term.

Consider your organization’s nature, your growth objectives, and your level of risk tolerance before choosing the ideal business structure.

Step 2: Register Your Business

After deciding on your business structure, the next step is to register your company with the appropriate authorities in Singapore. You must take the following actions:

  • Select a company name: Select a unique and interesting name for your business. Ensure it complies to Singapore’s naming guidelines and is neither offensive nor prohibited.
  • Register your firm with ACRA: Singapore’s regulatory body in charge of business registration is the Accounting and Corporate Regulatory Authority (ACRA). You can use their website to register your business online or hire a professional firm to help you.
  • Obtain the required licenses and permits: You may be required to procure additional licenses or permits depending on the nature of your business. Make sure you comply with the rules by doing some research and identifying the specific licenses necessary for your sector.

Step 3: Set Up Banking and Taxation

You must open a bank account and understand Singapore tax’s structure to run your business successfully. The following factors are imperative:

  • Open a Business Bank Account: Select a bank in Singapore to segregate personal and business finances, streamlining accounting and tax reporting. Prepare the required paperwork in advance, such as your business registration certificate and identification.
  • Understand Tax Liabilities: Singapore offers an advantageous tax structure with low corporate tax rates and various types of tax incentives. Discover the tax duties applicable to your sector and business structure. If your yearly revenue surpasses the threshold, you must register for the Goods and Services Tax (GST).

Establish Your Business in Singapore with Professionals

With the right guidance, starting a new business in Singapore can be an exciting venture. You may get through the procedure easily by following these three crucial steps. But if you are still facing any problems, you should engage with professionals providing incorporation services in Singapore!

SOHO is an organization for helping entrepreneurs with business setups in Singapore. We offer customized company incorporation services in Singapore that meet your unique needs.With our extensive knowledge and expertise of Singapore’s business landscape, our team streamlines the whole process of setting up a business. We are able to assist you with everything from company incorporation and registration to offering advice on legal and regulatory requirements, ensuring a successful venture into the lion city.