There is no better place to start a business today than in Singapore, thanks to its topnotch technological readiness, exceptional infrastructure and transport support, unbeatable low taxes, and overall ease of doing business. However, the limitless opportunities that the Lion City presents should in no way sidetrack you in building a stable and lucrative company. Company incorporation can be a huge challenge in this part of the world if new entrepreneurs don’t arm themselves with the right know-how in starting a business.
Putting up a business is no walk in the park, and the challenge even becomes more daunting when setting up in an unfamiliar location like Singapore, especially if you’re a foreigner or an offshore firm. Even local entrepreneurs can be faced with unexpected roadblocks if they don’t gear themselves up with the right business acumen to ensure success in such a competitive business environment.
Sure, there is no proven recipe for business success, but it helps to build a solid foundation when laying your first stone. This means avoiding the common pitfalls that may derail your vision in setting up a promising enterprise in Asia’s most sought-after business hub.
Here, we name some of the mistakes that new entrepreneurs should keep away from when setting up a Singapore company.
- Not having a solid business plan: Your business doesn’t end with just having a great idea. That idea needs to be concretised in the form of a business plan that is well researched. Your business plan should flesh out important details such as the product or services you will offer, your target market, your competition, how you will brand your business, and how you will market your offerings. It is important as well to put in writing what you want to accomplish and the strategies you will employ to achieve your objectives.
- Not doing enough research: Sure, you have this great idea for a business, but does it have enough punch to create an impact in a competitive environment? It is vital to research the industry and the market before you set up your business. This means understanding your customers (which means knowing their habits and behaviour, where you can reach them, how you will reach them, and how you will get them to react to your offerings) and tailoring your product or service based on the need of your target audience. Novelty is a crucial factor in business success, which means you should be able to offer something that hasn’t been offered before in order to pique the interest of the market. This, in turn, will make your business sustainable.
- Not clearly identifying your business entity: Properly categorising your business is an important ingredient in a successful Singapore company incorporation. When you register your business, it is a must to know the right business structure that defines your business so that you will know the applicable legal tenets that cover your business, particularly when it comes to tax concerns. Before deciding if your business falls under a sole proprietorship, partnership, or a limited private company in Singapore, take note of key factors such as the nature of your business, number of owners, your initial capital investment, the risks involved and you are willing to take, your long-term business plan, and the ease of closing the business. Differentiating your business structure is important as this will affect how you manage your business and your tax obligations.
- Not coming up with a good business name: Company incorporation entails having a good business name that isn’t similar with the rest to avoid copyright infringement. Verify the availability of your chosen business name by going through the online directory of registered businesses of the Accounting and Corporate Regulatory Authority (ACRA).
- Not setting up a business bank account: Opening a corporate bank account after your Singapore company incorporation is vital to avoid facing legal issues, especially if taxes are concerned. It is best to separate your personal and business finances not only to avoid questions from the Inland Revenue Authority of Singapore (IRAS) but also to build a more credible and professional image as a business owner. You can pick from a bevy of local and international banks in Singapore offering a suitable corporate account that fits your business needs.
- Hiring people too quickly: Starting a business means you need to be smart about your finances, especially when you know you are operating on limited funds. This means you need to be wise when spending as you don’t want to spend on something that might cost you more in the long run. This includes hiring employees too quickly or worse, hiring the wrong ones that do not have the right skill sets to help achieve your business goals, or hiring full-time ones when you can only afford part-time hires as of the moment.
- Going through everything all by yourself: Whilst the government has made Singapore company incorporation much easier for new entrepreneurs, it is not smart to do it all alone. Setting up a business in the Lion City involves having a keen eye for details, which means you need to be thorough and follow instructions to a T to avoid omissions and any other mistakes, especially when it comes to meeting the country’s strict regulatory compliance. It is smarter to have a local professional services provider to help you iron out all the essentials in putting up a Singapore business. Moreover, there are certain aspects of setting up a business in Singapore that require the assistance of a resident, which means if you are a foreigner looking to register your business, you need a Singapore resident to help you do so.
Ensure you’re on the right track when starting a business with a Singapore incorporation services
The first few months of setting up a company could be overwhelming for any entrepreneur. A Singapore incorporation services firm can help you put up your business more efficiently.
Professional services providers who are experts in company incorporation can provide you the expertise and experience you need to simplify the process of starting a Singapore business. They can help you prepare all the documents you need for business registration with ease as well as provide valuable advice on the right business name or business structure that fits your company. They will help you know the tax incentives that apply to you should you choose a sole proprietorship, partnership, or limited private company in Singapore as your legal entity.
Engaging a Singapore incorporation services firm is also crucial for foreigners who want to speed up the approval of their business registration. Professional firms involved in incorporating a company have highly qualified and well-trained local experts who can help offshore firms quickly incorporate their company in Singapore.
With a Singapore incorporation services company helping you put up a business, you lessen all the worries and avoid the mistakes that come with starting a company in the Lion City. You can focus all your energy in building your business to ensure it is positioned for success.