Although expats often dream that they could, in fact, be their own boss, starting a business in Singapore can be a nerve-wracking endeavor. Still, following your dream and dealing with the extra workload is often worth it. This guide will give you some pointers of how to begin when starting your business in Singapore.
EntrePass
Before starting a business in Singapore, you need to secure the right type of visa, an EntrePass. To be eligible to receive an EntrePass, you need to fulfill certain requirements.
- Your business structure of choice must be a Private Limited Company and registered as thus.
- You cannot own more than 30% of the shares.
- Your company should at least have SGD50,000 paid-up-capital.
- The company cannot have been registered for more than six months at the time of application.
An EntrePass is particularly important if you plan on being actively involved in managing your company’s operations. For more information on the EntrePass, have a look at our article on work permits or simply contact the Ministry of Manpower.
Registering your Business
There are a variety of business structures in Singapore which we briefly want to list below:
- Sole Proprietorship
- Partnership
- Limited Liability Partnership (LLP)
- Limited Partnership (LP)
- Company
In order to register your company in Singapore, you need to turn to the Accounting & Corporate Regulatory Authority (ACRA). Two local agents who are legal residents of Singapore can act on your behalf when starting a business in Singapore. The registration process is rather uncomplicated and should not take too long, as long as you take care of the following points beforehand:
- Make sure you adhere to the eligibility requirements.
- Find out if the name of your company is still available. The Singapore Network Information Center (SGNIC) can help you with that.
- Find out the SSIC (Singapore Standard Industry Classification) code of your company.
- Find a suitable business location.
- Get all the necessary licenses and permits for your business.
- If you are unsure about the details of the registration process, hire a professional to help you with starting a business in Singapore.
The registration fee will amount to approximately SGD300 – SGD1,200, plus SGD15 for the approval of your business name. Once all this has been taken care of you can register your business online with ACRA.
Taxation
Any type of income you receive is subject to income tax in Singapore. This is also the case when you are starting a business in Singapore. However, there are other taxes business owners have to pay as well, such as Goods and Services Tax (GST), which is levied on the import of goods. The tax rates are as follows:
- Income Tax: depending on the type of business
- Goods and Services Tax (GST): 7%
- Withholding Tax: 10-20% (depending on the purpose)
- Property Tax: 10%
- Stamp Duty: depends on the value of your transaction
When starting a business in Singapore, it makes sense to get in touch with an accounting firm to help you with taxation and other financial details. That way, you will make sure to do everything right without losing your mind over it. Refer to our guide on Finance and Taxation for more information.
Further Resources
- EnterpriseOne has detailed information on different business structures, taxation and starting a business in Singapore.
- The Singapore Network Information Centre (SGNIC) provides you with an online registry and information services.
The SingPass, a common password which you can use for different official online services, is essential when starting a business in Singapore.
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