Singapore’s strong economy and flourishing investment environment have positioned it as an attractive destination for business ventures, making it one of the most competitive economies globally. For foreign entrepreneurs looking to tap into the Asian market, setting up a small business in Singapore presents a promising opportunity. Singapore company formation has compiled a helpful checklist to assist investors in streamlining the process and preparing for their entrepreneurial journey in Singapore.
Reasons for Choosing Singapore as a Foreign Entrepreneur
Singapore’s robust trade and investment landscape sets it apart as the most competitive country in Asia and the world’s easiest place to conduct business. Beyond these advantages, starting a business in Singapore offers numerous benefits. The country boasts an extensive network of over 50 comprehensive Double Taxation Avoidance Agreements with major global markets, as well as multiple free trade agreements and Investment Guarantee Agreements. Singapore’s stringent intellectual property laws provide strong protection for innovative ideas. Moreover, the government has launched Startup SG, an initiative designed as a launch pad for entrepreneurs, facilitating the establishment of small businesses in Singapore by creating an enabling environment for growth and prosperity.
Infrastructure and Financial Services
Singapore’s exceptional infrastructure serves as a solid foundation for business development. With Changi International Airport connecting to more than 330 cities worldwide and hosting renowned logistics companies like UPS and FedEx, seamless global connectivity is ensured. Singapore’s seaport, recognized as the best in Asia, acts as a vital link between Singapore and 123 other countries, making it an attractive hub for trade. The country’s population enjoys widespread access to high-speed internet, simplifying customer outreach for businesses. With over 128 commercial banks, including 31 merchant banks and 604 capital markets services license holders, Singapore provides a diverse range of top-notch banking and financial services. Additionally, Singapore houses one of the world’s largest forex trading centers.
Checklist for Foreign Entrepreneurs Starting a Small Business in Singapore
To embark on a successful entrepreneurial journey in Singapore, foreign entrepreneurs should follow these four essential steps:
Step 1:
Develop a comprehensive business plan encompassing vision and mission statements, market analysis, target audience identification, product and service offerings, marketing strategies, and financial, logistical, and operational considerations. Capital costs and fixed costs play a crucial role in the business’s initial stages, with paid-up capital being a key requirement for company registration. Choosing a unique and memorable company name is vital, adhering to government restrictions that prohibit certain words such as “bank,” “insurance,” “university,” and “education” without special permits.
Step 2:
Register the new company by providing pertinent business details, including a concise description, corporate secretary information, nominee director information (with at least one director being a Singapore citizen), and a local address for legal correspondence. Foreign entrepreneurs require the assistance of an authorized third party, such as Singapore company formation, to facilitate the registration process. Singapore company formation offers a range of services, including nominee director service and serviced office packages, streamlining this step for entrepreneurs.
Step 3:
Open a local bank account for the newly established Singapore company. Singapore offers an array of esteemed international and local banks, but the process may be time-consuming due to stringent banking regulations and the Know Your Customer (KYC) policy, which necessitates an in-person interview. Singapore company formation simplifies this process by providing remote support for opening bank accounts, including assistance with application preparation and guidance for the KYC interview.
Step 4:
Establish an accounting routine to fulfill the Singapore government’s tax obligations. Even if the company has no transactions, it must submit annual reports such as Estimated Chargeable Income (ECI), financial statements, and annual tax returns (Form C or Form C-S). As many small businesses lack an in-house accounting team, this step can be daunting. However, Singapore company formation offers accounting and auditing services, ensuring a seamless experience by leveraging their team’s expertise and professionalism.
By adhering to this checklist and leveraging the services provided by Singapore company formation, foreign entrepreneurs can confidently navigate the process of starting a small business in Singapore, setting themselves up for success in this dynamic business environment.
