Starting a company in Singapore is a great choice for entrepreneurs because it offers many benefits. These include a well-developed infrastructure, political stability, a large network of advisory services, and robust investment policies.
The city-state is a top-ranked business destination and offers an excellent environment for technology startups. However, establishing a business in Singapore is not a simple process.
Establishing a business in Singapore
Singapore is known for being one of the most business-friendly countries in the world. However, there are some important things you should keep in mind before starting a business here. For example, you will need to register your company, obtain necessary permits, and hire employees. You will also need to have the proper funds. This can be done through personal savings, a bank business loan, or by seeking financial backers.
Once you’ve determined your business structure and chosen a name, you can register your company with ACRA. Then, you can get started with your operations. Make sure you choose a unique name and set your legal name different from your trading name to avoid copyright issues.
You will need to have a physical address for your business during the registration process. This can be a commercial or residential address. In addition, you will need to have a local bank account for your company. Singapore has a wide variety of banks, so you’ll have plenty of options to choose from.
Selecting a business structure
Choosing the right business structure can have a big impact on your company’s success. The entity type you select will influence how your business is perceived by potential customers, how you manage risk, and how much you pay in taxes. The process of selecting a business structure is crucial for entrepreneurs, and it’s worth consulting with experts to make the right choice.
Private Limited Companies are a popular business structure in Singapore, and they offer several benefits to entrepreneurs. These businesses have their own legal identity and can acquire property. They also have the ability to attract investors and grant tax exemptions. They must comply with strict rules and regulations set by ACRA and the Inland Revenue Authority of Singapore, IRAS.
Partnerships are another popular business structure in Singapore. They are similar to sole proprietorships and allow two or more people to share management responsibilities and profits. However, partners are liable for any debts or liabilities the company incurs. This is why many new entrepreneurs choose to register as a sole proprietorship.
Registering a company
Registering a company in Singapore is a process that involves several steps. For starters, you need to select a company name and submit it to ACRA (Accounting and Corporate Regulatory Authority). The chosen name must not be offensive or infringe on trademark or copyright laws. You must also have at least one resident director. Ideally, this person should be a Singapore citizen, permanent resident, or employment pass holder.
The next step is to prepare the company constitution. The document should contain information about the company’s shareholders, directors, and managers. You can either use a standard constitution template provided by ACRA or hire a professional firm to draft the document.
You must also choose an SSIC (Singapore Standard Industrial Classification) code. This will help ACRA and government agencies categorize your business. Moreover, you must provide a local registered office address for the company. This address is the address where ACRA and other government agencies will send official documents to.
Opening a bank account
A business bank account in Singapore allows a company to manage its funds and transactions in the country. It also helps companies avoid paying excessive fees and charges. Moreover, it helps the company to stay in compliance with local laws and regulations. Besides, opening a bank account is essential for any business that plans to expand abroad.
The bank accounts in Singapore offer a variety of features, including multi-currency accounts and internet banking. These accounts allow businesses to make international transfers without incurring any currency exchange rates. It is recommended to compare the corporate account offerings of several banks and choose one that matches the banking needs of your company.
It is important to note that many of the local banks require the signatories and directors of a company to be present in Singapore during the account opening process. This is to ensure that they meet the KYC and risk requirements of the bank. In some cases, it may be possible to appoint a representative and start the process remotely.