What to Consider Before Starting a Business in Singapore
Setting up a business in Singapore is easy and streamlined and it’s a very lucrative country for your business. If you’re thinking of setting up a business there then there may be a lot of ideas and options floating around in your head. What are the absolute key points you should consider to start a business in Singapore?
- Deciding the nature of business
Decide upon the nature of the company you want to start. Depending on the type of industry your company belongs to, you’ll have to proceed with the necessary formalities like getting together the documents and prepping office space. Every type of industry has different incorporation proceedings in Singapore. After deciding the industry type you have to decide upon the type of business it is going to be. Whether your business is going to be a Private Limited firm, sole proprietorship, a small scale business or a home based office, is something that you’ll have to decide before you decide to register your business. Having a game plan is very important and so is roughly planning out the resources needed.
- Arranging funds
Setting up your business requires you to raise initial capital to start your business. Where do you raise these funds from? If you do not take a loan you would source funds by yourself or ask your relatives and friends for initial investment. However if you’re planning to start a big company; this amount may not be sufficient for you. There are small venture capital companies in Singapore should you require external funding. This is probably the most important step of starting a business without which it would be an impossible task. Approach these venture capital companies and pitch your ideas. If they like your idea they will invest in you. You could even explore the option of starting a subsidiary company. The prerequisite conditions and necessities for a subsidiary company are explained here.
- Networking
Once you have decided upon the nature of business that you are about to start, it is most important that you start networking and get your business known in your industry. Get to know the other companies in your network and exchange pleasantries. If you find any associations related to your industry, actively seek membership. This will get your company known even before you actively start working. If you want to get your business known further then participate in any events like seminars, exhibitions, meets and trade shows that take place in your industry. Be an active member of any social media platform that runs in your industry.
- Setting up office
Searching for a place that matches your company requirements can be quite time consuming. Most people prefer to cut costs by starting their companies at home. However if you’re starting a big company then you would need a proper office space to settle all your employees. Office expense will be the most major expense you’ll face initially as office spaces have high rents in Singapore. An efficient and accurate estimate of all the employees you’ll need in the first year of incorporation will aid in planning your office expenses better.
Singapore is emerging as the best commercial destination for overseas offices because of the tax policies like Double Taxation agreements and the ease of setting up all kinds of businesses. They have also set up different departments which are easily approachable by potential businesses.
