How to Start A Business in Singapore, Roadmap to Succeed!

According to the EIU's most recent business environment ranking for the second quarter of 2023, Singapore has successfully maintained its position as the best business environment for the next five years. 

This can happen as the government provides support systems and resources to help entrepreneurs develop their business ideas, making Singapore an ideal place to start a business. 

In addition, Singapore also provides a favorable tax regime for businesses, making it an excellent choice for local and international businesses. Then, how to start a business in Singapore? Check what you need to prepare in the following!

How to Start A Business in Singapore 

It is important to understand that Singapore has a potential market, making it an ideal location for businesses. The broad market potential in Singapore allows enterprises to make huge profits by entering the local market. 

This is why starting a business in Singapore is attractive to entrepreneurs. If you are wondering how to start a business from scratch, here are the complete steps you should follow.

1. Create a Business Plan 

Entrepreneurs do not rely on their ideas alone. The first step in starting a business in Singapore is to create a business plan, which serves as a detailed map for operating your business or developing a downloadable app.

A business plan should outline business goals, how to achieve them, company funding, and marketing strategies. Additionally, it should also contain background information about the team striving to achieve the company's goals.

As the business grows, you will need to include the main points of the plan and add to them as the focus of a business plan is always going to evolve. 

2. Conduct Market Research 

If talking about how to start a business in Singapore, then conducting market research is as crucial as ever. 

The main purpose of conducting market research is to determine who will buy your product or service. This strategy includes understanding demographics, consumer behavior, and the specific needs or preferences of your potential customers.

Here are some reasons why it's necessary to conduct customer research: 

• Help improve your products and services  
• Learn about how people make decisions in making purchases. 
• Fosters stronger relationships with your target audience.
• Helps you stay informed about evolving market trends and preferences.
• and many more.

To make you easier to determine your actions and create better strategies, here’s how to conduct market research: 

• Start by creating a customer profile: Create demographics, starting with the age, location, and interests of the buyer who will buy your product. 
• Do research (online or directly): Look for customer-related information, such as their habits and interests. 
• Ask questions: Find people who are interested in your product and ask questions about what they need from your business. Where can they get that product or service? Is there a better solution than the current one? 

3. Define Business Structures 

Creating a business structure is a crucial stage in building a successful business. Business structures are divided into several types: 

• Sole Proprietorship: A one-person or company-owned business. The owner has the authority to operate a business. 
• Limited Liability Partnership (LLP): The owner has the flexibility to operate as a partnership while maintaining a separate legal identity, similar to a private limited company. Partners who are incorporated into LLP will not be individually responsible for any business debt arising from LLP. A partner is individually liable for any loss as a result of its actions but is not responsible for any failure caused by LLP.
• Partnership: Companies from partnerships with at most 20 partners. Partnerships also have their own legal identity, particularly in terms of property ownership. Typically, the partnership company's name is "Pte Ltd" or "Ltd".
• Limited Partnership (LP): The minimum requirement is to have two partners. Among these two partners, there should be one general partner (who holds the responsibility of managing the business operation) and one limited partner (who contributes to the business financially in its day-to-day operations). 

4. Business Registration and Other Administrative Tasks

After deciding on the appropriate structure for how to start a business in Singapore, it's time to register your business in Singapore. 

This can be done by submitting an online application through the BizFile ACRA service. ACRA stands for the Accounting and Corporate Regulatory Authority, which regulates how companies are incorporated and operated in Singapore. 

ACRA offers various services related to corporate registration and management, such as new company registration, corporate information management, and corporate regulatory compliance. The following steps that you should be taken: 

• To submit online transactions, log in to BizFile using your identification number and SingPass. You can use your device at the CitizenConnect Centres located at the Community Centres or at one of the ACRA BizFiles Kiosks at the facility.
• It takes approximately 15 minutes to incorporate a company after the filing fee is paid.
• However, if the application requires approval or verification from another government agency, this process can take anywhere from 14 days to two months.
• ACRA will provide your business with a unique Business Registration Number (BRN), similar to an NRIC, for identification purposes.

In addition, if you are uncertain about your obligations to the government, you can seek assistance from people who can answer your questions.

In this case, you need to look for industry associates within your business sector, search for local business advocacy groups such as the Chamber of Commerce, and consult with a business similar to yours to inquire about their compliance procedures. 

5. Pay Your Business Taxes  

When discussing how to start an online business, taxes become one of the factors that need to be carefully considered.

The cost of starting a business in Singapore varies depending on the type of business, how large the business needs to become, and several other factors.

In Singapore, income from any activity, including online businesses, that is earned in a personal account for profit will be taxed. This also applies to organized activities, such as conventional businesses.

If the activity is done through a foreign platform operated in Singapore, the income will be considered as Singapore's source income and will be taxed here. However, products that are purchased for personal use and not for resale are not subject to tax.

When should we do a tax return application? You can make a tax return application if you receive an order from the tax authorities or if you have a net trade income exceeding 6000 SGD per year or a total income of more than 22,000 SGD.

If your business meets these income requirements, you need to log in to myTax Portal between March 1st to April 18th each year to apply for tax returns.

It is important to file your tax return on time, especially if you are filing a tax return. To activate your myTax Portal account, you must send a letter to IRAS (Inland Revenue Authority of Singapore) before March 1st.
 

Those are some of the explanations that will help you know how to start a business in Singapore. While the steps above are necessary, it is still important to understand that every business has different strategies for success.

For instance, if you want your business to rank at the top of search engines like Google, you must expand your business digital presence by producing SEO-friendly content for your business website.

cmlabs provides a variety of beneficial services, including SEO Services, Expert Writing, and many more. Let's collaborate with cmlabs to become a top-of-mind business in Singapore!