How to start a business in Singapore? National Day Sale

Singapore is a beacon of entrepreneurial success, hailed all over the world for its strong economy and business-friendly climate. In this dynamic city-state where innovation meets opportunity, the idea of starting a business is not just a dream but a viable reality for millions.

Singapore has consistently been one of the best locations in the world for doing business for 15 years. This testament points toward a streamlined regulatory environment and progressive economic policies.

We are here to celebrate the spirit of enterprise on National Day, and there possibly has never been a better time for budding entrepreneurs to take the plunge. The National Day Sale offers a great chance for new businesses to access critical services and tools at lower costs.

Whether you hail from these parts or are an international investor, knowing your way around such fertile business landscapes is going to help you lay down the base of enduring success.

Why Start a Business in Singapore?

Singapore is a prime location for business activity. It is well positioned at the crossroads of major shipping and air routes, providing access to markets in the dynamic regions of Asia. It forms a melting pot for people, businesses, and ideas, providing unrivaled access to the world's businesses. More importantly, this strategic advantage is complemented by world-class physical and digital infrastructure that efficiently supports business needs.

Singapore actively accommodates a growth environment. It offers numerous tax exemptions, grants to startups, and schemes for innovation. Notably, the World Bank positioned Singapore at second place across the globe in the ease of doing business index.

Thus, it provides a stronghold for maintaining a simple and supportive regulatory framework for entrepreneurs. These factors collectively make Singapore an irresistible choice for anyone looking to launch or expand a business.

How to Start a Business in Singapore: A Step-by-Step Guide

Starting a business in Singapore involves several important steps to ensure success. Here are the key steps to navigate its vibrant entrepreneurial landscape:

Step 1: Decide on Your Business Structure

Choosing an appropriate business structure is important for regulatory, tax, and liability purposes. The following are the available options in Singapore:

• Sole Proprietorship: Suitable for sole owners of businesses. It is the easiest form but carries the risk of unlimited personal liability.
• Partnership: A business in which two or more people share profits and management duties. The partnership can be general or limited and influence liability or even investment duties.
• Limited Liability Company (LLC): The most popular and flexible form since it can protect one's personal assets from business liabilities to manage the risks and plan taxes.

Step 2: Register Your Business

Registration with the Accounting and Corporate Regulatory Authority (ACRA) is mandatory and can be completed online:

• Business Name: First, ensure your business name is unique and resonates with your brand. ACRA’s online portal allows for quick name-checking and reservation.
• Documentation: Prepare and submit necessary documents, including details of shareholders and directors, business activities, and registered addresses.
• Fee Payment: The registration process typically completes within a few hours post fee submission, provided all documents are in order and compliance checks are clear.

Step 3: Obtain Necessary Licenses and Permits

The specific licenses and permits required depend on the nature of your business:

• Retail Operations: Requires a general retail license for operating physical stores.
• Food Services: Must secure health and safety permits from the Singapore Food Agency, especially for handling and selling food items.
• Financial Services: Engagements in financial activities necessitate obtaining relevant licenses from the Monetary Authority of Singapore.

Step 4: Understand Tax Obligations

Negotiating tax obligations is an important aspect of setting up a new business in Singapore. Here are the key takeaways:

• Corporate Income Tax: Singapore's corporate tax rate is among the lowest in the world, capped at 17%. Start-ups benefit from multiple partial tax exemptions and rebates, mainly in their initial years.
• Goods and Services Tax (GST): You must register for GST if your business's annual turnover exceeds SGD 1 million. The current rate of GST is 9%.
• Startup Tax Exemption Scheme (SUTE): Eligible startups enjoy a 75% tax exemption on their first SGD 100,000 of normal chargeable income for the initial three consecutive assessment years.

These are meant to help start-ups and allow for entrepreneurial activities in Singapore's vibrant economy.

Step 5: Setup Your Business Location

The choice of location is critical to your business success. In Singapore, you have a wide range of alternatives:

• Physical Offices:
  1. Central Business District (CBD): Most appropriate for businesses looking for status and proximity to finance services and multinational headquarters.
  2. Business Parks: They are suitable for R&D, knowledge-intensive industries, and technology.
• Virtual Offices: An affordable option that will provide a business address, sometimes in an up-market location, and communication services without having to rent physical office space. This may be especially valuable for start-ups that need to keep overhead low while projecting the image of a professional business front.

Financing Your Startup

Having the proper funding for your startup can really make a big difference and provide great potential success in Singapore's competitive market. Here's a look at some of the primary options for financing:

• Government Grants: The government has implemented various grants to help startups, especially those involving technology and innovation. Among the most important programs is the Startup SG Founder Grant, which provides novice entrepreneurs with promising business ideas up to S$50,000.
• Bank Loans: Almost all major banks in Singapore offer business loans under one term or another. Many of them with government schemes that lower the risk to lenders and make it easier for startups to qualify.
• Venture Capital: This city-state is a vibrant source of activity for venture capital, with many firms that carry on this business and specialize in earlier to mid-stage funding. In this sense, it provides capital and strategic guidance to the start-up to scale up.

(Stock photo from Freepik)

Using Technology for Business Success

In today’s digital landscape, selecting a reliable web hosting service is critical for business success. Vodien, a trusted provider in Singapore, ensures your online platform is consistently efficient and secure. Here's why Vodien is an excellent choice for startups:

• Reliability: Vodien guarantees 99.9% uptime, keeping your business website operational and accessible to your audience at all times.
• Support: Round-the-clock customer support from Vodien means that any technical issues are resolved swiftly, ensuring minimal disruption to your services.

National Day Sale Specials for New Businesses:

• 40% Off 2-Year Plans: Vodien is celebrating Singapore's 59th National Day with an amazing discount on all of its two-year web hosting plans.
• $0.59 SG Domain: The new hosting plan will enable clients to buy a .sg domain name at $0.59 only, therefore effectively reducing the amount it would cost for the whole set-up of their services in the first place.
• Free SSL Certificate: A free SSL certificate boosts the security of your website and protects user information.

These offerings provide a cost-effective opportunity for new businesses to establish their online presence. With the reliability and customer service Vodien is known for, they become an invaluable part of your business toolkit.

Marketing Your New Business

Effectively market your new business in Singapore with strategic approaches that are tailored to a local audience. Here are some foundational strategies:

Source

• Digital Marketing: Use the online platforms provided by Google Ads and Facebook to reach a larger target group. Singapore has over 5.79 million internet users in the begininging of 2024 and digital campaigns can give your visibility a real boost.
• Content Marketing: Create engaging and relevant content that will relate to your target demographic. Blogs, videos, and infographics will help you make your brand a leader in the industry.
• Networking: Attend local business events and workshops to meet potential customers and other small business owners. This helps build your brand's visibility and reputation.

Conclusion

Singapore presents a compelling landscape for entrepreneurs, characterized by its strategic location, leading infrastructure, and a government supportive of business growth. Utilizing these advantages during Singapore’s National Day provides a strategic opportunity to capitalize on special deals that can lower startup costs.

Take, for example, Vodien's National Day Sale, which offers substantial discounts on web hosting and domain services essential for establishing a strong online presence.

Set your business up for success with the right tools and the right timing. Explore Vodien’s offerings today or contact us for more details!