Your Full Guide To Starting a Business In Singapore

Are you starting a business in Singapore and are confused about the steps to register? You can stop worrying because we’ll show you everything you need to know, from choosing a business structure and opening a corporate bank account, to handling corporate tax. 

For example, did you know you can be exempt from registering your business entity if you use your full name in your National Registration Identity Card (NRIC) as your business name? This exemption applies if you are a sole proprietor or a partnership Singapore company. 

Read and digest every word as we show you how to start a business in Singapore. 

Business Structures in Singapore Explained

Before officially starting a Singapore company and developing the business plan, you must decide on the company’s structure and register it. 

The following are five business structures available in Singapore:

• Sole Proprietorship: In a Sole Proprietorship, a single individual owns and operates the business. This business entity type gives the owner complete control, but the owner becomes liable for all business debts and legal obligations. Some may even sacrifice personal savings to pay company debts if they are bankrupt.Sole Proprietorship and Partnership are business entity types for small businesses with fewer owners.
  

• Partnership: A Partnership is a Singapore business entity between two or more individuals (up to 20 partners). They will all share ownership and management responsibilities. Partnerships can be general partnerships (where each partner is liable for the partnership’s debts) or limited partnerships.
• Limited Partnership (LP): An LP usually consists of at least two partners, with one general partner and one limited partner. The general partner is responsible for the partnership’s debts, while the limited partner’s liability is based on the amount they invested. 
• Limited Liability Partnership (LLP): On the other hand, an LLP is a separate legal entity formed by at least two partners. Each partner has a separate legal identity and is not liable for the actions or debts of other partners. Limited Partnership and Limited Liability Partnership are for those seeking liability protection while having multiple partners.

• Private Limited Company (Pte Ltd): A Private Limited Company is Singapore’s most common business structure. It offers limited liability protection to its shareholders, protecting its assets from the company’s debts or liabilities. This option is ideal for most businesses due to flexibility and ease of ownership transfer.
  
• Public Company: A Public Company is a business entity with shares available to the public on a stock exchange. There are no limits to the number of shareholders a public company can have, but it has stricter regulatory requirements.
  
• Local Company: A local company is a business entity that can be a private limited or public company. Its existence is not dependent on the lifespan of the business owner. This business structure can also own property and assets, separate from its owners or shareholders. When setting up a new business entity, consider how it would serve you in the long term. 

Once you choose the business structure, you should proceed to registering a business name. 

How To Register a Business Name in Singapore

Business registration is the second step on our list. Are you excited? You will finally register your business name and other essential details with the Accounting and Corporate Regulatory Authority (ACRA). 

Here’s a guide to help you through the process:

1. Firstly, choose a unique name that tells people what you do. Confirm whether it has been taken through the ACRA’s online business name registry. Find this on the Singapore government’s official website links. 
2. Once you confirm that your business is genuine, head to the Singapore government agency website. Tap on Business Registration Matters and head to the BizFile+ portal to apply and pay the registration fee.
3. Register for the company alone or hire an agency to help you. Regardless, you need documents and information (i.e., Business address).
4. After registration, you will receive a Unique Entity Number (UEN) and a Business Profile with your details.

ACRA has set some regulations for you to be aware of. For example, you must renew your registration annually and update any business changes accordingly.

Applying for a Tax Code and Number

You need the Goods and Services Tax (GST) registration in Singapore to get a tax code and number. The GST registration process depends on your business’s registration type and constitution. 

Follow these steps to get a GST registration for your chargeable income:

1. Determine Your Registration Type. Firstly, you should confirm if it’s a must to register GST or if it’s not compulsory. Visit the government website of the Inland Revenue Authority of Singapore (IRAS) for guidance.
   
2. Complete the e-Learning Course. You need the “Overview of GST” course on the IRAS website to proceed, as the course helps with basic GST knowledge.
   
3. Submit Your Application Online. Visit the mytax.iras.gov.sg portal, submit your GST registration application, and upload the required documents. Ensure you have Corppass authorization for online submissions. Make sure you have essential documents in softcopy before your application starts. If your GST application is voluntary, sign up for GIRO (General Interbank Recurring Order) for GST payments and refunds. You should mail the GIRO application form after your online application.
   
4. Wait for IRAS feedback. IRAS processes 60% of applications within ten working days, and the remaining 40% can take longer (about 30 days).
   
5. Receive Notification. You’ll receive a letter with your GST registration number and effective date if approved by IRAS. These details are necessary for tax collection.

Visit government agencies’ pages like IRAS to learn more about registering your company and filing your first corporate tax return. If you need more help, consider getting help from a legal agency.

Opening a Company Bank Account

Here, we outline the options and procedures for opening a bank account for your business, including the requirements for different business entities. Business owners should follow these steps to open business bank accounts in Singapore.

Step 1: Choose a Bank

Before businesses open a bank account with financial institutions, consider what your business needs from a bank. Do they have credit lines, cash management, and mobile check deposit services? 

If yes, compare their minimum balance requirement and potential cash bonuses.

Step 2: Prepare Documents

You need the following document for the business entity you registered:

• Social Security Number or Employer Identification Number (EIN) and all the licenses or name filing documents for sole proprietorships;
• EIN, partnership agreement, name filing document for partnerships;
• EIN, Articles of Incorporation for corporations;
• Social Security number or EIN and Articles of Organization for LLCs.

These documents may make you eligible to hire talents, even foreign professionals, but they would need an employment pass.

Step 3: Open the Account

Decide whether to open an account online or in person. Some industries require the owner to be present in person doing research. 

Lastly, check that you included the correct details (i.e., local registered address) and that your business bank account is set up correctly. Try testing deposits and withdrawals with a small amount and consider using accounting software for tracking annual revenue.

Legal Requirements for Running a Business in Singapore

If you want your company to remain a legal entity, there are some legal requirements and regulations you must adhere to to avoid complaints from a corporate regulatory authority. You should also have a company constitution that governs your company’s employees. 

These are the requirements should follow: 

• Company Registration: We have already discussed the importance of registering your business with ACRA and choosing a business structure. The ACRA also has guidelines for registering parent companies with their subsidiary company. The parent company could be foreign and wish to set up subsidiaries in Singapore. For that, they would need a representative office that allows them to conduct market research and other nonprofit activities.
  
• Shareholder Requirements: Each business entity type has its requirements. For example, a Pte Ltd in Singapore can have at least one shareholder and a maximum of 50 shareholders.
  
• Company Naming Requirements: Choose a nonexisting name for your business and ensure it doesn’t infringe on trademarks. Follow ACRA’s strict guidelines when creating a business name. You should use a locally registered address for your company. Even if your business is remote, it should have a virtual office address. Your address cannot be a P.O. Box.
  
• Appointment of Directors and Company Secretary: Identify official local director (a resident of Singapore). They should be at least 18 and qualified to hold a position. Singapore companies must also appoint a company secretary within six months of starting.
  
• Compliance with Regulations: Ensure you comply with the industry’s relevant rules and regulations. You might need permits or licenses from regulatory authorities like the Monetary Authority of Singapore (MAS) or the Inland Revenue Authority of Singapore (IRAS).
  
• Tax Registration: Ensure you register for taxes with IRAS for corporate income tax, goods and services tax (GST), and withholding tax, if applicable. Track your financial records and file tax returns.

Legal requirements can be strenuous to keep up with, but they are essential for your credibility as a business. You can use the help of legal experts to go through the complexities and get all the licences you need.

Accessing Grants and Funding for Startups in Singapore

As a business in Singapore, you can raise capital through angel investors or government grants to achieve business goals. 

The following are suggestions when looking to raise funds:

• Explore Government Grants: In Singapore, you can access various government grants and funding schemes to support startups like the SG Start-up Grant and Enterprise Singapore Grants.
• Eligibility Requirements: Pay attention to the eligibility criteria for each grant and ensure that you fit. Don’t wait until you have poured blood and sweat into an application before confirming your eligibility. Check factors like business size, industry focus, and business age (e.g., business must be at least two years old).

If you are eligible, thoroughly research and prepare the most compelling grant application. Be sure that your presentation aligns with the objectives of the funding scheme.

Market Assessment and Research 

Market assessment and research are ongoing activities for both large and small business entities. 

The following are steps to include in standard market research:

• Understand the Market: Conduct market research with the Singaporean market and top-performing foreign companies. This will help you understand Singapore’s consumer behavior better.
• Competitor Analysis:  You may want to compare your company with local and foreign businesses to identify gaps and see how you can outperform them.
• Keyword Research for SEO: Use keyword research tools like Google Keyword Planner to optimize your website with relevant search terms Singapore citizens use.

Lastly, gather customer feedback through surveys or focus groups to determine their wants. Your competitors may be thriving even though no one has given customers what they want.

Choosing Digital Tools and Tech Stack

Below, we’ve recommended digital tools for building your website and business. Having go-to tools will save you time and be cost-effective.

• Website Building: Use user-friendly website builders like NEXT BASKET to create a professional online store without coding. 
• Marketing Tools: Marketing tools like Mailchimp for email campaigns and Google Analytics for tracking website traffic can help boost your reach.
• Customer Support Tools: Platforms like Zendesk can help provide seamless customer support with features like live chat and ticketing systems.
• Accounting Software: Some accounting software like QuickBooks or Xero can help track your finances and streamline invoicing. 

With the right digital tools for your startup, you can provide your customers with the best experience and productivity.

Identifying and Appointing the Right Business Partners

If you want to grow the business, you will inevitably want to partner with other businesses. Find business partners with values similar to your company’s and better understand the Singaporean market. 

In addition, choose partners based on their knowledge of the market network and experience. 

You should also consider businesses in your range. For example, if you are a two-year-old business and have yet to hit some goals, companies with 20 years of experience likely won’t want to partner with you unless you make them a good deal (too good to ignore).

Steps to Incorporate Your Business in Singapore

You must register your business, appoint a secretary, fulfill tax obligations, and hire employees to incorporate your business fully into Singapore.

After choosing your business name and registering with ACRA, you should consider hiring employees, especially a corporate secretary. They ensure you comply with statutory requirements and fulfill administrative duties. 

These include maintaining statutory registers, filing annual returns, and organizing shareholder meetings. You must also fulfill your tax obligations by registering for Goods and Services Tax (GST) and filing corporate income tax. 

Below, there are a few essential steps to consider.

Identifying Your Target Audience and Their Needs

If you can give your audience what they want each time and as fast as possible, you have won in business. Take time to research about their needs, demographics, desires, pain points, and preferences. 

With this information, draw out a buyer persona you can always access and update when necessary. Use the buyer persona to tailor your products or services, content, packaging, and messaging. See the image below for reference.

Developing a Business Plan and Securing Startup Capital

A business plan should contain all the essential details about your bus business, which include:

• Executive summary: Introduction, a summary of business goals, target market, and marketing strategy;
• Company description: The name of your business, business structure, business model, mission and vision statement, values, and goals;
• Market analysis, product details, value proposition, and marketing strategy;
• Financing: financial projections, sales strategy, and investment options.

All these details are essential if you seek angel investors’ grants. They need to see everything in detail to consider your business for investment.

Creating a Well-Designed Website

You need a website to be seen as professional and credible. There is no way a customer would see your functional, simple, and neat website design and not take you seriously. 

The following is a checklist of a well-designed website:

• Easy navigation
• Attractive design
• Consistent branding
• Mobile-friendliness
• Quick loading times
• Clear calls-to-action
• Quality content
• Readable text
• Accessibility
• Secure connection

Besides these, secure websites are great for ensuring the security of your data and visitors. Purchase SSL certificates and implement encryption protocols to enforce security. 

Investing in Digital Marketing Strategies

“Every great journey starts with a single step.” – Maya Angelou. This quote by Maya Angelou is similar to digital marketing — take it one step at a time. 

Here is what to consider in the long run:

• Search engine optimization (SEO)
• Pay-per-click (PPC) advertising
• Social media marketing
• Content marketing
• Email marketing
• Influencer marketing
• Affiliate marketing
• Video Marketing
• Remarketing and retargeting ads

Unless you have a robust team, you should take it step by step. Many businesses start with social media marketing, SEO, and content marketing and later explore the rest.