Starting a company in Singapore is among the best decisions an entrepreneur can make. It allows the entrepreneur to connect with Asia and the West markets since the country acts as a gateway to both worlds. It has a business-friendly environment, which made it a global hub for business.
Entrepreneurs dream of a company, and starting one in Lion City is the ultimate dream of many entrepreneurs. But to achieve the dream, they have to start from the bottom and work on attaining their dream. Here are the things an entrepreneur should do to start a business in Singapore.
Start with a Business Concept
The first thing an entrepreneur should do is start with a concept. The concept provides a starting point for the business. But the concept should meet the current and future needs of the people in the city-state.
Similar to other economies around the world, the pandemic also significantly affected the Singaporean economy. Sectors associated with international travel were among the hardest hit along food and retail shops. So, entrepreneurs should take this situation into account when they think of a business concept. It should also consider the health and safety aspect of the situation.
Develop the Business Plan
Once they have the business concept, it’s time for entrepreneurs to develop their business plans. The plan serves as the guide for the business, and it should show how the business can start and grow in Lion City.
Prepare the Finances
Entrepreneurs should also have their finances ready when they start a business. The finances should include the funds for the business itself, licenses, insurance, legal company registration fees, Enter pass, and property lease, among others.
If they do not have enough finances for the business, the entrepreneur can take out a loan from a licensed moneylender for the business. These companies normally offer loans for entrepreneurs who want to start a business. Entrepreneurs should make sure their finances are enough to cover initial operating expenses for one to two years. This amount should cover rent, salaries, and other expenses the business will incur during its operations.
Form the Business
Forming the business and registering it with the Accounting and Corporate Regulatory Authority (ACRA) of Singapore is the next thing that entrepreneurs should do. They should make sure that ACRA approves the name of the business.
The entrepreneur should also choose the type of business to start. The options are a private limited company, a sole proprietorship, and a limited liability partnership. Each type has its advantages and disadvantages. Entrepreneurs should choose one that’s suitable for their needs.
Get the Necessary Licenses
Getting the licenses and permits is the next thing an entrepreneur should do. Without the legal documents, the business cannot start operating in the country. Following the rules and regulations in Singapore is essential to avoid issues when the business is already operating.
The process of obtaining the licenses and permits is challenging. But entrepreneurs can enlist the help of third-party companies to help them work on these legal documents. These companies also help entrepreneurs establish their businesses in Singapore.
Establish an Accounting System
The entrepreneur should also establish an accounting system since it can serve as one of the foundations of the business. The system also ensures that the company will run smoothly once the entrepreneur starts the business.They can look for a third-party accounting service to take care of this aspect of the business.
Using a third-party service allows the entrepreneur to focus on running the business. They can move the system into the business once it grows and has a bigger market share. Additionally, the entrepreneur should set aside a considerable budget for the accounting system to avoid issues in the future.
Set Up an Office
At this point, the entrepreneur should set up the office. They can look for a location that is suitable for the needs of the business. One option is the Singapore Central Business District since it allows the entrepreneur to network with other startups and collaborate on some projects.
While the location can be costly, it offers many benefits for the business as it grows in Singapore.
The entrepreneur should also recruit the right people for the business. The number of employees depends on the business plan since it serves as a guide as it grows.
The first few months will see the business struggling to operate as the employees and the entrepreneur are still working together. But once they synched up, the business can focus on growing and expanding.
Starting a business in Singapore is challenging but rewarding once it succeeds and makes a name for itself in the market.
