Do you want to start a business in Singapore?
You could do a lot worse for a country, but you should still read up on the legal requirements and tax implications first. Don’t let the previous sentence scare you off though: it’s not as difficult as it might sound. So, sit back, relax, and let’s start with Business Incorporation Singapore some basic definitions.
As far as the government is concerned, there are three main categories for business:
These are businesses that produce goods or services for sale. There are many different types of trades in Singapore, from foodstuff to heavy equipment to construction and manufacturing.
These are businesses that provide services directly to consumers (e.g., restaurants, hotels) or businesses (e.g., lawyers, accountants).
These are businesses that invest capital for profit. This includes banks, fund managers, and property investment companies.
The first two categories, trade and services, are what we’re concerned with when starting a Business Incorporation Singapore. To understand why, we need to look at how the Ministry of Manpower (MOM) defines an employee versus an independent contractor: “An employee is defined as a person employed to perform work or services for remuneration under a contract of service. Labor laws in Singapore do not distinguish between employees and independent contractors. An employee thus has the same rights and liabilities as his independent contractor counterpart (The Ministry of Manpower website, 2015).”
As you can see, there’s no difference between an employee and an independent contractor under the Manpower Act. This means that an employee is entitled to all the same benefits as their employer: health insurance, social security, vacation pay, etc. The only difference is that they are taxed differently; but that’s it. There are no other differences between independent contractors and employees, especially when they are working on the same business.
So how does this tie into starting a business in Singapore?
Well, the government has two terms for businesses:
1.Sole Proprietorship (SP)
This is an unincorporated business that does not have to register with the Accounting and Corporate Regulatory Authority (ACRA). You are responsible for the tax liabilities of your business.
This is a business that has registered with ACRA and is governed by the Partnership Act (SA). In a partnership, each partner is responsible for all the tax liabilities for his own portion of the business.
There are several reasons why an individual would want to start a Business Incorporation Singapore, ranging from tax planning to lifestyle. However, the most common reason for doing so is because of the lack of an educated workforce. Whether you’re looking for a side job or a full-time career, it’s important to know how to start a business in Singapore.
Why don’t you start a simple business in Singapore?
Well, the most common problems with starting a business in Singapore are related to the number of complications and requirements. For example, let’s say that you need to register your business. How many documents would you need?
This could include:
1. Business registration this is where you register your name with ACRA and give it legal standing. It also gives your business legal standing in court (if necessary). It’s a simple process that usually takes a few days to complete.
2. Partnership agreement this is where you and your partners agree on the distribution of profits, management of the business, etc. The Partnership Act requires that you enter into this legal document as a Partnership at least 2 partners (generally speaking). Once again, it’s a relatively easy process that can be completed in several days.
3. Tax documents this includes, but is not limited to, tax invoices and receipts and licenses/permits (if required). The Partnership Act requires that every partner submit tax documents with their financial statements. This can take anywhere from a few weeks to a few months, depending on how they will be processed through the Business Incorporation Singapore government.
Another obstacle that many individuals have is the minimum capital requirement for starting a business in Singapore. If you’ve read my previous article on starting a business in Singapore, you know that the minimum capital for a Sole Proprietorship is $18,000. You can also read about the Minimum Capital Requirement for Starting a Business in Singapore (in Simple English).
However, if you have this amount of money lying around and are interested in starting a business in Singapore, you’re probably ready for the next step.
How would you describe your ideal business?
As I mentioned above, there are three main categories of businesses:
These are businesses that produce goods or services for sale. There are many different types of trades Business Incorporation Singapore, from foodstuff to heavy equipment to construction and manufacturing. these are businesses that provide services directly to consumers (e.g., restaurants, hotels) or businesses (e.g., lawyers, accountants) these are businesses that invest capital for profit. This includes banks, fund managers, and property investment companies.
If you’re looking to start a simple business in Singapore, you should know that it is relatively easy to register one with the government. In addition, I have even found several resources online that are designed for foreigners who are looking to start a Business Incorporation Singapore
I understand that there may be other questions or concerns about starting a business in Singapore. However, I believe that this article has given you some basic answers about how to do just that.