Having a business in Singapore takes a lot of effort, but it can be very lucrative. However, establishing your business is not as easy as it may sound.
There are many considerations to consider, especially when choosing where to open your business.
To help you out, we’ve put together this list of things you need to know about setting up your business in Singapore.
1. Know the Jurisdiction of your Business
As a foreigner setting up business in Singapore, there are a few things you might want to take note of depending on the type of trade. The first thing to consider is the jurisdiction in which you are trading.
The most important of these is the Income Tax (ITA). As a foreign company, you’ll be subject to tax by the ITA if you make any profit from your business activities here.
2. Register your Business Name and Get a License for your Business in Singapore
Every business must register its business name with the Accounting and Corporate Regulatory Authority. You’ll also require a license from the Economic Development Board (EDB) to start your business here. You can apply for these licenses through the government’s Enterprise One-Stop Biz portal.
3. Choose a Company Structure for your business
You have a couple of options for choosing a company structure for your business in Singapore. You can decide to form a local company or be a branch of an overseas company. You’ll also have the option of being a sole proprietor or becoming a partner in a partnership.
4. Consider the Benefits of Setting up a Limited Liability Company
Many benefits come with setting up a limited liability company. Many entrepreneurs find that the corporate structure is the most suitable. But, before you commit to one, ask yourself why you need it. You must be aware that there are different types of companies depending on your business’s jurisdiction.
In Singapore, you can form a corporation and apply for your business to be a foreign company. However, the business structure is different in other countries. Therefore, you must check out the company law of the country you intend to set up your business before creating your business structure in Singapore.
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5. Register your Business in Singapore
If you are a foreigner, you must register your business for tax purposes with the Accounting and Corporate Regulatory Authority (ACRA). You’ll be required to register yourself and all your staff as well.
6. Have Your Singapore Bank Account Ready
Your business will be dependent on your Singapore bank account for many things. First, you’ll need this to open a bank account with your chosen financial institution. Secondly, you’ll need it to deposit your earnings into this account. Finally, it’s your account that is used to pay your Singapore tax.
7. Choose the Right Location for Your Business
You must choose the right location for your business, especially if you plan to open several branches in Singapore. You must be aware that Singapore has different places where the tax is the highest.
Also, there are other fee structures for different areas as well. For instance, for a single unit, you might be paying more in one area than another.
Conclusion Setting up your business in Singapore can be a little tricky. This is because the government has a lot of rules and requirements to adhere to. However, when you are aware of these rules and follow them accordingly, you can easily set up your business here without any problems.
To help you with this, consider hiring someone who can register a business in Singapore to guide and assist you through the process.
Or if you prefer, Singapore PEO services will allow you to start working without having to open a legal entity, taking care of all these critical aspects.
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