It is also worth noting that start-ups in Singapore have access to a wide array of government grants. For instance, the Enterprise Development Grant covers up to 50% of costs for projects relating to a business’ core capabilities, innovation and productivity, and market access. On the financing aspect of things, companies can also utilise the Enterprise Financing Scheme to secure loan facilities at significantly favourable terms. The purchase of equipment, rental costs, start-up costs, and production costs all translate into financial costs which must be met for a business to operate smoothly. If you require assistance in registering your business, do check out our rates or get in touch.
Step 1: Decide on a business structure
By following these steps, you ensure compliance with local laws and set a solid foundation for your business operations. Incorporating a business in Singapore costs SGD 15 for the company name application and SGD 300 for the registration fee. Such services usually include the cost that has to be paid to the government. On the other hand, raising share capital may prove a less harsh arrangement financially for a business. This is because although shareholders who provide capital are entitled to be paid dividends (i.e. a cut of the company’s profits), these dividends can only be paid out of the company’s profits. This requires the company to be profitable before any dividends may be issued, which means that a company need how to set up a basic bookkeeping system not worry about issuing dividends should it not be making profits.
A copy of your company’s constitution must be submitted when applying to incorporate your company. If you do not wish to create your own constitution, you may choose to adopt the applicable Model Constitution below. Failure to register your business may result in a fine of up to $10,000, or even imprisonment of up to 2 years, or both. You may refer to the guidelines on selecting a business name issued by ACRA to make the process of choosing a business name more efficient. Additionally, you want to shorten the learning curve try ‘overlearning’ should also run your proposed business name through the entity search function on the BizFile+ website, which is ACRA’s online filing and information retrieval system. You should run an online Google search to find out if your proposed name is already being used by a currently registered business, or if it is extremely similar to the name of such a business.
You will need to understand the key differences between the structures and decide which is right for your business. For more information, you may refer to our other article which discusses in depth the filing processes for corporate tax in Singapore as well as the penalties for late or non-payment of corporate tax or inaccurate tax filings. A business may either raise capital by issuing shares in return for shareholder capital, or by borrowing from creditors. For instance, raising debt capital is relatively cheaper to obtain in comparison to share capital, as the latter requires listing costs and other expenses. For more information on the registration process, as well as the relevant exemptions from registration, you may refer to this article on registering a business. Should your business require any licences, you may apply via GoBusiness prior to running your business.
- For more information, do refer to our list of articles on setting up a business.
- You will need to understand the key differences between the structures and decide which is right for your business.
- More information on the Scheme and application procedures can be found here.
- If you intend to carry on your business as an individual under only your full name, you are exempted from registration.
- If you do not intend to rent any office space, you can consider registering your home address as your business address under the Home Office Scheme.
- You can apply if you have started or plan to start a venture-backed or technologically innovative private limited company registered with ACRA.
Singapore Corporate Tax System
Ultimately, there are different pros and cons with each business structure, and this decision is largely dependent on your objectives. For instance, while setting up a company is relatively more expensive compared to other business structures, the members of the company have the benefit of not being personally liable for the debts and losses of the company. In contrast, while other business structures enjoy a lower initial start-up cost, its members are unable to avoid personal liability. Alternatively, you may wish to delegate this task to a corporate secretarial firm to manage your business’ obligations in this aspect. Failure to file a business’ income tax returns on time is an offence, and you will be liable to pay a 5% late payment fee or even face legal action should your business repeatedly fail to settle the payment.
Step 4: Submit your business registration application
If you are a Dependant’s Pass (DP) holder who wishes to start a business in Singapore, you can apply for a Letter of Consent (LOC) from MOM to run your business, after registering the business with ACRA. More information on the eligibility and application requirements can be found here. Additionally, different business structures will require different processes and requirements to register. Common business structures are Private Limited Companies (similar to Limited Liability Companies in other jurisdictions), Sole Proprietorships, and General Partnerships. Upon successful registration of your accounting for nonprofits basics business entity, you may need to apply for a licence or permit from other government agencies before commencing business.
If you had chosen to register your business as a company, you must apply to ACRA to voluntarily wind up your company or to strike it off the register. For owners/residents of private residential authority, the Home Office Scheme is administered by the Urban Redevelopment Authority (URA). More information on the Scheme and application procedures can be found here. If you do not intend to rent any office space, you can consider registering your home address as your business address under the Home Office Scheme. Apart from complying with the legal regulations, registering your business is also beneficial.
Choosing a business address
The authorities will start processing once the name application fee is paid and will be completed within 15 minutes. However, for more complex businesses, it may take up to 2 months if the application needs to be referred to another agency for approval or review. Singaporean law requires every company to appoint a corporate secretary and at least one director – usually within six months of incorporation, and they must be locals. This can be done online using the Singaporean government’s official platform – BizFile+. You will need a company name, a description of business activities, shareholder details, and a registered address.