Beginners Guide for New Entrepreneurs

Singapore offers an exceptional environment for entrepreneurs looking to start a business, thanks to its stable economy, government support, tax advantages, and robust ecosystem of investors, mentors, and talent. However, launching a business in Singapore demands meticulous planning, thorough research, and adherence to numerous rules and regulations. This Beginners Guide provides a comprehensive overview for new entrepreneurs in Singapore, covering 8 essential things to know.

1. BUSINESS STRUCTURE

The first step to starting a business in Singapore is to decide on the type of business entity that suits your needs and goals. There are different types of business structures in Singapore, such as sole proprietorship, limited partnership, company, and branch office. Each type has its own advantages and disadvantages, such as legal liability, tax implications, registration requirements, and operational flexibility. Consult a professional advisor or a corporate service provider to help you choose the best option for your business.

2. REGISTER NAME AND ENTITY

Once you have chosen your business structure, you need to register your business name and entity with the Accounting and Corporate Regulatory Authority (ACRA). Your business name should be unique, meaningful, and not infringe on any trademarks or existing businesses. You also need to provide information such as your business activities, registered address, shareholders, directors, company secretary, and share capital.

3. BANK ACCOUNT

After registering your business entity, you need to open a corporate bank account in Singapore to manage your business finances. There are many banks in Singapore that offer corporate banking services, such as DBS, OCBC, UOB, Standard Chartered, HSBC, Citibank, and more. You should compare the features, fees, and requirements of different banks before choosing one that suits your needs. Some of the documents that you may need to open a corporate bank account include your business registration certificate, constitution (for companies), identification documents of shareholders and directors, board resolution authorizing the opening of the account, and proof of address.

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4. APPLY FOR LICENSES

Depending on the nature and scope of your business activities, you may need to apply for various licenses and permits from different government agencies in Singapore. For example, if you are running a food and beverage business, you may need to obtain a food shop license from the Singapore Food Agency (SFA), a liquor license from the Liquor Licensing Board, and a halal certification from the Islamic Religious Council of Singapore (MUIS). If you are running an e-commerce business, you may need to comply with the Consumer Protection (Fair Trading) Act, the Personal Data Protection Act, and the Spam Control Act. You should check with the relevant authorities or consult a professional advisor to find out what licenses and permits you need for your business.

5. HIRE EMPLOYEES

If you are planning to hire employees for your business in Singapore, you need to comply with various labor laws and regulations that govern the employment relationship. Some of these laws include the Employment Act, which covers the basic terms and conditions of employment; the Central Provident Fund (CPF) Act, which requires employers to contribute to the social security savings of their employees; the Employment of Foreign Manpower Act, which regulates the hiring of foreign workers; and the Work Injury Compensation Act, which provides compensation for work-related injuries or diseases. You should also familiarize yourself with the best practices for recruitment, payroll, performance management, training and development, and employee engagement.

6. RECORD KEEPING AND TAXES

As a business owner in Singapore, you need to file taxes and keep proper records for your business income and expenses. The tax authority in Singapore is the Inland Revenue Authority of Singapore (IRAS), which administers various taxes such as corporate income tax, goods and services tax (GST), property tax, stamp duty, withholding tax, and more. You should register your business for tax purposes with IRAS within three months of starting your business operations. You should register your business for tax purposes with IRAS within three months of starting your business operations. To ensure compliance, keep accurate and complete records of your business transactions for at least five years. Consider using accounting software or hiring an accountant to help you with your bookkeeping and tax filing.

7. INTELLECTUAL PROPERTY

Intellectual property (IP) refers to the creations of your mind that have commercial value, such as inventions, designs, trademarks, logos, slogans, domain names, and more. IP is an important asset for your business, as it can help you differentiate yourself from your competitors, enhance your brand image, and generate revenue. You should protect your IP by registering it with the Intellectual Property Office of Singapore (IPOS), which grants IP rights such as patents, trademarks, designs, and plant varieties. You should also monitor and enforce your IP rights against any infringement or misuse by others.

8. LOCATION

The location and office space of your business can affect your operational efficiency, customer reach, brand image, and overhead costs. You should choose a location and office space that suits your business needs, budget, and target market. There are different types of office spaces available in Singapore, such as co-working spaces, serviced offices, virtual offices, or traditional offices. You should compare the features, benefits, and drawbacks of each type before making a decision. You should also consider the accessibility, convenience, security, and amenities of the location and office space. Contact Hub for services.