Business in Singapore Singapore is very attractive not just for big traders, but also for small entrepreneurs. Its state policies and tax system also cater for small startups with special provisions and incentives. In just a day or two, one can already start and run their very own business
This article outlines the things you need to consider and complete to start a small business in Singapore. This will help you in planning your steps and in organizing your business in order. Here’s how to start your business in Singapore.
Ascertain Your Business Idea
The reason you are here is that you have a business idea you want to capitalize on. But it takes more than just an idea to start a small business in Singapore. This business concept needs to be feasible to ensure the business’s profitability.
In the minimum, you need to answer the following questions:
- Does your business idea have enough demand to cover business costs?
- How would you measure progress and success?
- What are your milestones, and how do you plan to achieve them?
- Are you creating a new niche or entering an existing market?
- What is your edge over your business competitors?
Be brave enough to scrutinize every aspect. This is the brainstorming stage, so it is normal to be chaotic and for the process to overflow with possibilities. It is better to get every issue pointed out early on and address them than face the consequences later. Work out how you will turn this business idea into a feasible business plan.
Figure Out Your Financials
Starting a small business is daunting. You are capitalizing on a capital that you may either earn back or not. As every business is exposed to risks, it is good to figure out and plan your financials from the start.
Set up a financial plan. This will guide you through questions like where will you source your funds from? Whether you are getting it from personal savings, loan, or investor, ascertain if it is enough for at least 6 months without factoring in your potential earnings. It is normal for starting businesses to incur losses for its first year of operations, so it’s better to prepare for it in your financial plan.
There are two categories of costs you have to prepare for setting up a small business in Singapore. First is capital costs, which are one-time expenses necessary in starting a business. The second one is the fixed costs. These are the costs that you will incur as a result of operating. It includes utility, rent, and employee wages. In your financial plan, detail out eerie possible costs you will incur to allocate proper funds to them in your early operating period.
Choose a Business Structure
Decide which business structure is best for your interests and goals. You can either form as a sole proprietor, limited partnership, or as a corporation. Each business structure has its own benefits and disadvantages. You need to consider ownership protection, size, and liability in choosing the most suitable business structure for you.
Many entrepreneurs favor a private limited company in Singapore because of its minimal requirements. The company only has to have one local company director, at least one shareholder, a registered address, a company secretary, and a minimum paid-up capital of $1.
Register Your Business
Once you’ve covered the considerations mentioned above, then you are all set to register and start your business. Business registration is done with ACRA. You may choose to personally register on your own or avail of company formation services. You only need to have your documents in order and pay for the fees and you already have a license to run your business. The process should not take too long. You can even complete it within a day.
Reliable Company Registration Service Provider
Do you need more help on how to set up a company in Singapore? Register your small small business in Singapore with the help of our reliable professionals. We can help you complete the steps without hassle and stress on your part. Contact 3E Accounting Singapore today to know how our expert teams can assist you.