How to Start a Business in Singapore: A Step-by-Step Guide

1. Decide on Your Business Structure

Choosing the right business structure is like laying the foundation of a building—it impacts everything from operations to taxes. Singapore offers several business structures tailored to different needs:

• Sole Proprietorship: Ideal for solo entrepreneurs looking to run small businesses. While easy to set up, you bear full liability for the business.
• Partnership: Suitable for two or more individuals pooling resources to operate a business together. However, liability is shared among partners.
• Private Limited Company (Pte Ltd): The most popular structure, offering limited liability, easier access to funding, and corporate tax benefits.

2. Choose a Business Name

Your business name is your identity. It’s the first impression customers will have, so choose wisely! The name must be unique, easy to remember, and aligned with your brand. You can check for name availability and reserve it using ACRA’s BizFile+ portal.

Avoid using offensive or restricted terms, as these can lead to rejection. If you need inspiration, online business name generators like Shopify’s Business Name Generator can spark ideas.

3. Register Your Business with ACRA

Registration is your official entry into Singapore’s business ecosystem. All businesses must register through the BizFile+ portal. Here’s what you’ll need:

• A business name approved by ACRA.
• Details of shareholders, directors, and company secretary.
• A local Singapore business address.

Costs:

• Name reservation: SGD 15
• Company registration: Starting from SGD 300

For hassle-free registration, you can engage professional service providers like Sleek or Osome.

4. Open a Corporate Bank Account

A dedicated business bank account is crucial for separating personal and company finances. Major banks in Singapore, such as DBS, OCBC, and UOB, offer tailored solutions for businesses.

Documents Required:

• Business registration certificate from ACRA
• Identification documents of shareholders and directors
• Company constitution

Each bank has its own perks, so research and compare before opening an account.

5. Obtain Necessary Licences and Permits

Certain industries in Singapore require additional licences or permits. For instance:

• Food businesses need an SFA food shop licence from the Singapore Food Agency.
• Retail businesses may need a permit for signage from the Urban Redevelopment Authority (URA).
• Financial services must comply with Monetary Authority of Singapore (MAS) regulations.

You can check the requirements for your specific business using the GoBusiness Licensing Portal.

6. Register for Tax and CPF Contributions

Singapore’s tax system is one of the most competitive globally. Here’s what you need to know:

• Corporate Income Tax: A flat rate of 17% applies, with tax exemptions available for new startups.
• GST Registration: Required if your revenue exceeds SGD 1 million annually.
• CPF Contributions: Employers must register with the Central Provident Fund (CPF) to contribute to employees’ retirement savings.

7. Develop a Business Plan

Your business plan is your roadmap to success. It outlines your goals, target audience, and strategy for growth. Investors and banks often require a comprehensive plan before offering funding or loans.

For guidance, use free resources like the Enterprise Singapore Business Toolkit.

8. Consider Funding and Grants

Singapore supports entrepreneurs with various funding options:

• Startup SG: A suite of government initiatives supporting startups. Visit Startup SG for details.
• Enterprise Development Grant (EDG): Assists companies in upgrading business capabilities.
• Private funding through angel investors or venture capitalists.

9. Establish a Digital Presence

In today’s digital age, visibility is key. Start with:

• Registering your domain with providers like GoDaddy or Namecheap.
• Building a professional website using platforms like Wix or WordPress.
• Setting up social media accounts on platforms like LinkedIn, Instagram, or Facebook to connect with your audience.

10. Comply with Ongoing Regulatory Requirements

Running a business in Singapore involves ongoing compliance:

• File Annual Returns: Submit them to ACRA via BizFile+.
• Tax Filing: Submit corporate taxes annually to the Inland Revenue Authority of Singapore (IRAS).
• Renew Licences: Stay updated on renewals for specific permits.

Get Started On Your Exciting Journey

Starting a business in Singapore is an exciting journey filled with opportunities. With the right planning, tools, and resources, your dream of building a successful venture can become a reality.

Remember, every great business starts with a single step—take yours today!