3 questions to ask before you start a business in Singapore
Starting a business is a wise decision to make. To start business in Singapore is an even wiser decision to make. The country is strategically located in the centre of Asia. A foreign set up company in Singapore can gain easy access to other Asian countries. In addition, the country has a good reputation and globally competitive workers.
As an aspiring entrepreneur, it is normal to have a few doubts as you set up a company in Singapore. That is the same if you are a foreign company owner. Hiring an incorporated company in Singapore agency is a good first step. However, there are some things you need to work on in your business. In this article, we’ll cover the 3 questions to ask before you start business in Singapore.
Question #1 – Which type of entity should you set up a company in Singapore?
There are several types of businesses that can be registered in Singapore. These are sole proprietorship and partnership. Limited partnership (LP) and limited liability partnership (LLP) are the other two. In a sole proprietorship, there is only one business owner. The owner of the business in Singapore can be an individual, company, or an LLP. While in partnership, there can be at least two business owners. This type of business can have a maximum of 20 partner owners who will also be liable for the business.
In an LP, the general partner is the only liable partner. The limited partner is responsible with any business engagement in the set up company. That is if the limited partner doesn’t have to take part in the decision-making process. In an LLP, the owners have the versatility of operations. That is while having separate legal identities. If you are not familiar with some of these business types, it is recommended to consult with experts. An incorporate company in Singapore agency can help you decide.
Afterward, the next thing to decide on is choosing the type of company registration. There are three types of foreign incorporated companies in Singapore registrations. One of them is a representative office registration. Usually, if you only aim to research on the Singaporean market, this is the most recommended for you. However, you are not allowed to do business transactions like sales and contract signing as a representative office. In addition, you are only allowed to hire a maximum of five persons. Familiarizing yourself first with the Singaporean environment. After that, you can re-register in a more permanent type of company registration.
The second foreign incorporated company in Singapore registration is the branch office. As a branch office, you are allowed to do business transactions. That is if the transaction is in-line with the business activities of the mother company. However, legal violations committed by the branch office are shouldered by the mother company.
The last one is the subsidiary foreign incorporate company in Singapore registration. This is the most flexible company registration. With this registration, new start businesses in Singapore can enjoy the benefits most local businesses have. It may have difficult registration requirements. However, if you have a set company in Singapore agency to help you, you comply with all of the requirements.
Question #2 – What benefits does a foreign start business in Singapore get?
Singapore is one of the best countries where you can start your business. That is because there are a lot of benefits that your set up company in Singapore can enjoy. Here are only some of the foreign start businesses in Singapore that benefit.
- A foreigner can own 100% of his set up company in Singapore.
- For only 1 Singaporean dollar capital, anyone can start business in Singapore.
- You can repatriate 100% of sales made in Singapore back to the mother company.
- Set up companies in Singapore registration is direct and fast.
- There are no tax charges on capital gains.
- New businesses are given tax breaks on the first three years of existence.
- Singapore has a double taxation agreement with over 50 countries all over the world.
- Singapore provides a unilateral tax credit to the foreign set up company in Singapore. This is for those whose home country is not included in the double taxation agreement.
- The government gives funds and labor funding assistance, grants, and tax incentives for foreign businesses.
- The government of Singapore is corruption-free.
- Singapore has a vigorous economy.
- The country’s location is in the centre of Asia.
- The transport system and other facility infrastructures in Singapore are world-class.
- There are cheap ways to live in Singapore that can minimize the cost of living.
- The country’s high-class educational system can produce talented and productive workers
- There are great incorporate company in Singapore agencies to help your business.
Question #3 – How is the Singapore market?
As a business owner, it is important to research the market you aim to target. This is necessary if you’re planning to start a business in Singapore. You need to know if your business has the potential to click in the Singaporean market. Therefore, finding your customers in Singapore should be a priority for you.
Your Singaporean customers are vital for your business to last. Studying purchasing style will help you make the right decisions. You can decide on the types of products and services your business will have. This information will help you know who you can reach out to your customer and make them buy your products.
As suggested earlier, incorporating as a representative company will let you get a feel of the Singaporean market. This will give you the opportunity to study your Singaporean customers. You will have a chance to observe your competitors in Singapore. You can also look for potential local Singaporean suppliers if applicable. If you need help in incorporating as a representative office, find a good incorporate company in Singapore.
Need help in incorporating your business?
These are the three questions to ask before you start a business in Singapore. It is important to know what type of business you will register. Furthermore, it is essential to know foreign company benefits and the Singaporean market. If you need help registering your business, we, at WLP, can help you. We are a one-stop solution for business incorporation, accounting, and many more. Check out services by clicking the services button on the navigation bar.