Singapore is a small island nation in Southeast Asia, and it’s one of the most popular countries for doing business. The country was one on the top of the World’s Bank six years ago, and it’s still holding the number one place today.
One of the reasons for that is that it takes only three days to start a private business. The country has business-friendly laws and flexible immigration policies, making it one of the most popular places for foreign investments. Here’s a quick overview of everything you have to do to start your own business in Singapore.
Quick 3-step Registration Process
Believe it or not, you only need to take the following three steps to open a Singapore business. Here’s precisely what you have to do to register your company here:
Step 1 – Choose Your Business Entity
Even though there are plenty of options when you want to register a business in Singapore, most new companies are registered as private limited companies. The registration is done with the Accounting & Corporate Regulatory Authority, aka ACRA.
Another law you should be aware of is that you’re not liable for any losses or depths higher than your initial share capital as a shareholder. However, you will have to pay taxes regularly to stay in business.
Step 2 – Set Up Your Company Details
Singapore’s Company Act is behind the private limited company, and it has to be organized according to ACRA laws as well as the Inland Revenue Authority of Singapore, or IRAS. Here’s a full list of details you have to provide to set up your own company:
- ACRA approved company name
- Total number of shareholders
- A list of directors who live in Singapore
- The name of the secretary that also has to live in Singapore
- The total capital you invest
- A physical office address in Singapore
It’s highly recommended that you buy a Business Profile from ACRA as it grants you access to detailed reports and information about your business. That includes information such as your registration number, list of shareholders, registration date, and so on. Naturally, you will also have to open a native bank account and get all of the licenses and permits needed to run a legal business.
Step 3 – Open a Bank Account
The last step is to open up a bank account in any of the Singapore banks. There are plenty of options, so make sure you ask for the details before making your final choice.
Other Legal Processes You Must Cover
After completing the first three steps, your company is up and running. It will become a part of Singapore’s tax system, and you will be able to start gathering additional licenses and permits to offer your products and services to the public. Here are the other documents you’ll need to get started.
Licenses and permits
Depending on your business type, you will need to get some kind of approval from Singapore’s government to start providing services. Some of the businesses that need to do this are financial advisors, video companies, travel agencies, private schools, wholesalers, importers, and liquor stores.
Register Office Hours
Naturally, you will need to provide a detailed overview of your office working hours. The minimum is three hours a week. You will also have to provide your office’s address and other details.
Registration Number
You will get your company’s registration number directly from ACRA. Remember that you have to include it in all legal documents that have something to do with your business. The number is used for official business communications with the government.
Customs Registrations
If you’re planning to export or import goods, you will also need to register your company with Singapore’s customs. Don’t forget about this step because you can end up losing your shipments before they ever reach your office or customer.
Goods and services tax registration
The goods and services tax or GST is the tax you have to pay regularly. It allows you to purchase goods and services, as well as import them directly to Singapore. You don’t need to get the GST as long as your annual revenue doesn’t exceed S$1 million annually.
Registration with Singapore Central Provident Fund or CPF
Every business in Singapore has to pay for the Central Provident Fund, a pension fund for all employees. It requires you to pay a small portion of your income and contribute to the resident employee pension fund. The payments have to be made every month.
The Bottom Line
Singapore is one of the most flexible countries for foreign and domestic investments. The entire process of registering a company is quick and easy, much easier than one may think. You can go through it alone, but you can also hire PilotAsia to ensure that everything is done right. So, if you’re planning on opening a business outside of your home country, Singapore is an excellent choice!
