Your Complete Guide to Start Business in Singapore in 2025
Start a Business in Singapore
Singapore, often referred to as one of the most business-friendly nations globally, offers numerous advantages for entrepreneurs. However, starting a business in Singapore requires careful planning, research, and adherence to local regulations. Here’s a comprehensive guide to help you navigate the process.
Key Factors To Consider Before Starting A Business In Singapore
Check out a few key factors before starting a business in Singapore.
1. Determining what business to start and how to start your own business in Singapore
The first step to realizing your business ambitions is to incorporate your company by getting your business registered in Singapore. However, to do that, you should first determine the business structure that is appropriate for you. Most of the country’s businesses are private limited organizations.
While a sole proprietorship may appear alluring, you need to remember that it has its share of downsides. It is a one-man business that regards the business and the business as a single entity. It also means that a sole proprietor is accountable for all the liabilities and risks incurred by their business and may have to sell their assets to settle the losses and debts of their businesses.
Instead, registering a company is a much safer bet. After you have decided on the business type, the company registration process in Singapore is an inexpensive and simple process.
Learn more about which businesses to start in Singapore on our Industry Guide, which will provide you with more detail information about how to start and operate a Singapore Company.
Click here for your Guide to Singapore company registration so that you can enjoy a hassle-free registration process and help on how to start your own business.
2. Get funds for your new business and start a business in Singapore
Have you thought about how you can get finance to set up a business in Singapore and get help setting up a small business? Apart from bootstrapping, you may have to explore your contacts and find possible funding sources to help set up a small business. Many people begin with their savings and borrow money from acquaintances. However, based on the kind of your business funding needs, it may not be adequate for you.
A big perk of starting your own business in Singapore is that several attractive schemes are already in place to help small new ventures. For example, SPRING Singapore aims to ensure that innovative business ideas are transformed into workable plans by offering the necessary support to the ambitious and young to start their businesses in Singapore. Plus, they offer support to motivate more businesses so that they can start their journey towards transforming into global competitive brands.
Check out some of their popular schemes below if you are wondering how to start your own business in singapore.
- Business Angel Scheme
- SPRING Start-up Enterprise Development Scheme
- Technology Enterprise Commercialization Scheme
- Sector-Specific Accelerator Programme
You need to find out which would be most appropriate for your requirements. You can contact SPRING with your project details and business ideas. If they like your ideas, you may get funds for your business with their support.
Moreover, several other avenues exist to receive guidance and funding for your project in Singapore. Some of them are:
- www.ace.org.sg
- www.bansea.org
- www.investmentnetwork.sg
3. Networking for the business
If you are contemplating how to start your own business in Singapore and develop it, you need to also do the right kind of networking for your upcoming business venture in Singapore. It is also recommended that you participate in professional networking in the country the moment you have proper clarity on the kind of small business you want to begin in Singapore.
Rather, immediately seek a membership of the trade & industry associations linked to your domain area at the earliest. It is also imperative for you to take part in the start-up meets, trade shows, exhibitions, and seminars. Avoid spamming but become an active member of the social media platform.
4. Start your new office
For entrepreneurs setting up a company in Singapore, starting at home may save costs. The arrangement works fine when you are a sole proprietor or have less than three persons in your business.
However, if you want to see your business growing, you have to shift to a separate office space soon. At the same time, you need to remember that rents for commercial spaces are high in Singapore. This space is ultra competitive despite having access to the abundant talent pool.
Plus, there should be a proper plan to combat the staffing challenges. An important consideration to make is the number of employees you need to have on board in your first year. You need to get some solid figures to have a proper estimate of the relevant expenses so that you can plan around them.
Singapore is becoming the preferred destination for first-time entrepreneurs. The country has signed a huge network of Agreements pertaining to Double Taxation Agreements, which is one of the key reasons for this. The Singaporean Government has successfully created a positive ambiance for businessmen so that their businesses can thrive. As so many merits are being offered by the Lion Capital, more entrepreneurs are interested to begin or open their businesses in Singapore.
In case you want to know how to start a small business of your own, the steps mentioned below will definitely help you.
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Steps To Start A New Business In Singapore
Following Are The Key Steps To Get A New Business Started In Singapore:
1. Register your business
The first step in how to register a company in Singapore is to file the company name. All aspects of your business, from the name of your company to the details of the Board of Directors, need to be registered with the ACRA or Accounting and Corporate Regulatory Authority of Singapore before starting your business operations or beginning hiring your employees.
Once your company has been registered in Singapore, you may apply for all essential permits to start your business. If you take the help of reputable and reliable company registration services in Singapore, your job will be simply a cakewalk.
2. Procure the necessary permits
Before running your company or small business, proper permits may have to be procured for your business. You need to do extensive research work to find out details about the permits to be obtained that are relevant to your business. The good news is that you can take the help of EnterpriseOne, which has the entire list. You can go to their website to apply for them. It is one of the online branches of the Singaporean governments, which supports businessmen to figure out how to start own business in Singapore. Thus, the government of Singapore has taken all possible steps so that the process of beginning a new business can turn out to be a smooth one.
3. Set up office
It is imperative to find the right site to operate your business from for its survival. While setting up an office can be an issue in any other nation, it is not the same case in Singapore. In fact, the government of Singapore has made investments in several huge business parks all through the country, which can function as the ideal stage for the debut of your business. You will not face any problem finding an appropriate space for your office in Singapore with all these business parks.
4. Recruit employees
The Lion Capital has taken the best possible initiatives to make sure that startup businesses enjoy superior access to a continuous supply of qualified and well-trained professionals. In fact, the Workforce Development Agency or WDA will initiate a jobs bank so that a startup business finds it simple to search for and recruit their employees. It may also be necessary for you to hire your staff from abroad in case you can procure valid work passes for them.
Plus, you may also have to get familiar with your responsibilities as a Singaporean employer within the scope of the Employment Act of the country. For instance, you need to make their payment within a week after their salary period and give them their medical leaves and rest days. You are also recommended to procure medical insurance coverage, which covers the health care needs of your employees in singapore.
5. File relevant taxes
Setting up a new business in Singapore does not involve the risk of double taxation. The country has entered into detailed agreements for Avoidance of Double Taxation with more than 73 nations. Plus, it offers unilateral tax credit with the countries it has not entered into such agreements. The Singaporean government offers such advantages and expects that the entrepreneurs will pay their taxes on time. You can also hire the services of an experienced tax consultant in Singapore so that your taxes can be easily manageable and you can pay them on time.
Singapore Tax Rates Overview
- Corporate Tax for SMEs: The effective rate is progressive, starting at 4.25% on the first S$100,000 of chargeable income and rising to 17% for income exceeding S$200,000.
- Goods and Services Tax (GST): Businesses must register and pay GST at 8% once their turnover exceeds S$1,000,000. However, exports are zero-rated (GST rate of 0%).
- Dividend Tax: There is no tax on dividends in Singapore.
- Personal Income Tax: The rate is progressive, ranging from 0% to 22%.
- Example:
- On an annual salary of S$120,000, the tax payable is S$7,950 (effective rate of 6.6%).
- On an annual salary of S$250,000, the tax payable is S$30,700 (effective rate of 12.3%).
- Example:
This favorable tax structure makes Singapore an attractive location for businesses and individuals alike.
Importance Of A Business Plan
Having an innovative idea is just the beginning; a well-structured business plan is essential to turn your vision into reality. It serves as a roadmap, outlining your primary goals, marketing strategies, financial requirements, and the feasibility of achieving them.
A business plan doesn’t need to be lengthy initially—start with the basics and update it as your business grows. Its focus may shift depending on its use; for example, fundraising efforts require detailed financial projections and growth potential.
Naming your business is also a critical step in the planning process. In Singapore, you can easily check the availability of a company name to ensure it aligns with your vision.
A solid business plan is the foundation of any successful venture, whether big or small.
Key Business Processes After Setting Up a Business in Singapore
After setting up your business in Singapore, there are additional requirements you may need to address:
- Licenses and Permits: Certain businesses require approval from relevant authorities. For example, private schools must obtain licenses from the Ministry of Education.
- Office Hours: Your registered office address and operating hours must be reported to the Accounting and Corporate Regulatory Authority (ACRA). Offices must remain open for a minimum of three hours on each workday.
- Customs Registration: Businesses involved in importing or exporting goods must register with Singapore Customs.
- Goods and Services Tax (GST): Businesses with annual revenue exceeding S$1 million are required to register for GST, a tax levied on the supply of goods and services, including imported goods.
- Central Provident Fund (CPF): Employers and employees must contribute to Singapore’s national pension fund, the CPF, as part of their income.
These processes are essential for ensuring compliance and smooth operations in Singapore.
How To Start A Small Business At Home?
It is possible that you feel that you would like to be your own boss after working for others for many years. Or it is possible that you want to give a concrete shape to your deep passion or your biggest talent by making it your second career. No matter what the biggest reasons are to start your home-based business in Singapore, it can definitely be an exciting prospect. Similar to any other business venture or profession, it is crucial to make a proper plan to see your dream of getting fulfilled.
There is much similarity between starting a business at home and starting your regular business. The major difference is that there is no requirement for a separate physical office space if you plan to work from your home. In order to ensure that your home-based business is a success, you have to select the one you are deeply passionate about. Plus, you should have adequate skills and experience to ensure its success.
Kinds Of Home Businesses You Can Begin From Home
The sky’s the limit for you! You can do anything from home with the right drive and a deep passion for your work. Thus, you can begin your home-based business in any field. Check out some home-based businesses which are immensely popular in Singapore. You will also find the requirements for each job below:
- Massage therapist: Must have the necessary licensing requirements
- Bookkeeper: You must have had training in accountancy and know bookkeeping
- Expert in tax preparation: Background training in taxes
- Graphic designing: Flair for creativity and knowledge of design software
- Interior designer: Certification or degree in interior designing
- Hair stylist: Must have the necessary experience in hair-cutting
- Virtual assistant: While there are no specific requirements as such, organization skills will come in handy
- Copywriter: Must have a good command of English. It will be a bonus if you have a degree in communication, English, marketing, or English.
- Translator: Must be proficient in multiple languages
- Editor: Background in communication or English
- Marketing consultant: Must have a background in marketing
Conclusion
The above discussion might have enlightened you on how to run a small business in Singapore. Possessing unwavering grit and determination and proper clarity of vision are prerequisites for succeeding as an entrepreneur in Singapore. Many start-ups fail as entrepreneurs fail to realize the commitment and legwork required for success. On the other hand, if you have the right mindset, Singapore is an excellent place to see your ideas maturing into actionable plans. Click on Why 3E Accounting Company to know the benefits of choosing us as your reliable service provider to open a new business in Singapore.
