6 Steps to Establish a Business in SG - The Complete Guide
It’s never easy to set up a business anywhere in the world. Starting a company often presents a specific set of challenges that can be resolved with adequate knowledge and proper planning. Unlike most countries, Singapore provides new businesses’ relaxation in immigration policies and has business-friendly laws to give your company a fast beginning. Read on to learn some important steps in order to set up your business here in Singapore with ease.
1. The Company Name Matters
The first step in setting up your company is to select a company name.
Ask your filing agency to contact the ARCA for validation and make sure that the name you select for the business is unique and represents your business well. If your name matches with a company that already exists, your proposed company name might not be considered. Furthermore, you can have a commercial name that is different from the legal name. Make sure you don’t have any copyright or trademark problems for your trading name by doing a simple search on the internet.
2. Understanding Company Types
When you are conducting business in Singapore, it is mandatory to choose an SSIC code that describes the intended business activity. Government organizations like IRAS and the ARCA use this code to evaluate your business activity and can recommend you getting additional licenses, in case your activity does not meet the SSIC code. Companies in Singapore fall under four different business models that are explained below.
(i) Sole Proprietorship
As the name suggests, there is no other owner than yourself. Sole proprietorship applies to an individual, a business, or a company that is completely responsible for everything, including the losses.
(ii) Limited Liability Partnership
This type gives much freedom and flexibility to do business in a partnership while maintaining legal identity. In simple words, an LLP can operate as a corporate body and work to make its own legal identity that is not related to the partners.
Companies in Singapore are usually of two types, private and government-owned companies. A company operates independently maintaining a legal status without any influence.
While deciding your company’s structure, keep in mind the amount you want to invest, the number of business owners, and the responsibilities you are willing to take.
(iv) Limited Partnership
A limited partnership requires a minimum of two individuals, out of which one can be a general partner and the other one a limited partner. Setting up a limited partnership might be easy, but you cannot own any property under a limited partnership in order to conduct your business as it cannot be challenged or sued in court. So, make sure you register yourself under the type that best suits you.
3. Hire A Filing Agent
As a foreigner, the government does not allow someone to open up a business on their own. For this reason, a filing agent can be hired who will take care of most of the legalities and paperwork for your company. Moreover, detailed information about the online incorporation services at https://sleek.com claims to provide solutions to set up your business. Before you decide to hire someone for their services, it is best to research a bit and understand the whole process, your responsibilities as an owner, and their deliverables.
4. Building Up Your Team
Shareholders are the backbone of any company. In Singapore, companies or individuals can become shareholders. As mentioned in Singapore law, a business cannot have more than 50 shareholders. Successful businesses always choose a local director to run their operations smoothly as local representation is required as per Singapore law. Commonly throughout Singapore, people use a nominee director to fill in positions to meet the specific requirements set by the government. A corporate secretary is another important position in any business who is responsible for tracking the progress made in the business, making official documents, and keeping the government updated on the situation.
5. Address Should Be Registered
As an essential means of communication, a company or a business must have the address registered where your company is located. However, if you are encountering problems with registering your mailbox, there are several companies available that offer mailbox services. These companies receive the mail on your behalf, scan it, and send them over to you.
6. Keep Your Goals In Mind
Take every step carefully while keeping in mind the expenses you have to spend in building up the business. Moreover, decide upon the price of your business shares. Companies in Singapore have an average value of 1 dollar per share and can be paid using many international currencies.
Setting up a company can be an overwhelming task, but several flexible laws make it simple for anyone to set up their business. Singapore is truly a place for entrepreneurs who want to focus on growing their business and nurture their ideas into actions. By adhering to the Singapore laws about setting up your business, the whole process will be much easier than you thought.
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