A small idea can go a long way in the business world if the right strategies are incorporated at the right moment. The process of instituting a business is not easy; in the meantime, you have to make quick decisions too. Whether you are an experienced entrepreneur or starting your first company endeavour, having a thorough guide that offers valuable insights and solid direction could make all the difference in realising your entrepreneurial aspirations.
Let us look into the business startups in Singapore. Also, we will walk you through the steps that any startup needs to follow to step forward as a new company in Singapore. This blog article will act as a handbook to set your business venture from the bottom to the top.
Step-by-Step Guide for Singapore Start-Ups
Singapore has a developing entrepreneurial culture, which is forward-thinking and entrepreneur-friendly. Also, the country ranks second in Asia for startup businesses. In the top 10 worldwide rankings, Singapore comes in sixth place. Not only that, but also, Singapore currently has more than 4,000 startups with a success rate of about 30%. That is why we emphasise the importance of having a thorough understanding of the business culture in Singapore.
As a startup business you will come across everything from basics to advanced steps spanning from company registration, navigating regulatory requirements, implementing accounting, dealing with legal frameworks, designing business roadmaps, and generating marketing approaches. Peruse the passages below to have a thorough understanding of these steps.
Venture Forth as a Company
As the initial step of forming a company, selecting the appropriate business plan comes above all. Any startup needs to be precise about what type of business it will initiate. Also, a business should have a comprehensive business plan which includes its vision, mission, goals, time frame for targets, mode of marketing, the products and services that are going to be provided, and a good understanding of the target market. As Singapore is a business-landscape-friendly country, so the first step is not always that tough.
However, when it comes to the business structure, Singapore witnesses many, and they have strict regulations for this category. You must know exactly how many owners there will be in the company before starting the firm. What obligations and duties are you willing to take on? Which dangers are you willing to accept? What are the benefits and drawbacks of the various corporate structures?
After sorting out these issues, then comes the brand name. As we all know, branding is important for any business when reaching out to the target market. With a proper name that can capture the attention of potential customers, any startup business can step forward with a well-designed marketing campaign.
Last but not least, researching the market and the demographic needs to be on the list when understanding the target customer base. You will not be able to see the fruit of your investment if you do not have a good market and an enthusiastic clientele in Singapore. Furthermore, it is important to have knowledge of your rivals before entering the battlefield.
Prioritising Legal Framework
- Shareholders: In Singapore, there are several legal tasks to do when launching a new business. The first and most fundamental requirement is that you need at least one shareholder to create a Singapore business. A person or another business could be a shareholder. Also, keep in mind that a Singapore private limited company can have no more than 50 shareholders.
- Capital: The next condition is capital. A capital of just one Singapore dollar is all you need to start a business in Singapore. Later, if necessary, you can infuse more money and inform the business registration to expand the capital.
- International Ownership: Can a foreigner own a company in Singapore? The answer is yes! As long as a Singapore company has at least one Singapore-resident director, both Singapore residents and foreign residents are eligible to serve as directors. If made clearer, foreign nationals who reside outside of Singapore are permitted to own shares in Singapore-registered companies and to be named as foreign directors of those companies.
- Company Secretary: However, the business must choose a Singapore-based company secretary. A corporation must comply with these requirements in order to be registered, and the company secretary is in charge of making sure the business submits all required paperwork on time.
- Storing of Documentation: Apart from these facts, all legal documentation for the company must be stored at the registration address, which must be in Singapore.
- Legal Documents: All we mentioned above are the regulations, and now we move on to the documents you will need for company registration in Singapore. You must get the Company Constitution Consent of all company directors in order to serve as a director. Also, the business secretary must sign a consent form to serve as the secretary. In Singapore, it is required to sign a controller’s declaration as well.
More Weight on Accounting
After completing all the legal work, you must focus on the next big thing, which is accounting. A successful business is all about accounting and bookkeeping. Even though the company is a startup or an established one, you need your company to be running smoothly. That is where more weight goes on the accounting section.
When it comes to Singapore, you have a different but solid accounting system known as ‘Singapore Financial Reporting Standards’. All the companies registered within Singapore must adhere to this standard, which is based on the IFRS. According to SFRS regulation, all the companies established after 2003 must comply with it.
One of the primary tenets of Singaporean accounting standards is accrual-based accounting. The accrual foundation of accounting is used in the preparation of financial accounts. However, with the rapidly changing and expanding business landscape in Singapore, small businesses may find it difficult to cope with the complex standards that SFRS requires. That is why small companies need to establish a proper bookkeeping facility in their companies. This well-designed accounting process flaws from implementing a better system and regularly tracking spending and income to capturing the areas you need to improve in the future.
Mapping Success
A business plan lets you understand precisely what is required, when, and how to realise a company’s goal. To envision when you will reach your goals, you can map out what will occur during a specific month, quarter, or year or use any other time frame you want. Depending on the stage of company development and the size of your staff, it could be as specific or abstract as you require.
If put in other words, The most crucial strategic initiatives for the company as a whole should be included in your business roadmap. This comprises the objectives, projects, and overarching work themes of cross-functional teams.
There are long-term as well as short-term roadmaps for startup businesses. A long-term road map includes every element of company planning for the ensuing period. High-level projections for revenue, marketing and sales, staffing, and operations might be included here, along with any plans you have for new products or services. However, when it comes to short-term road maps, it can be either a year or six months at a time. Interestingly, along with individual roles, this roadmap could incorporate corporate-level objectives and ambitions.
As a new business that is stepping into the fiercer industrial competition in Singapore, you should consider establishing both long-term and short-term roadmaps.
Level Up with Business Strategy
Is strategic planning steering your way towards success? Business strategy planning is a huge process where all the aspects of the business are taken into consideration, and finally generate, proper strategies to follow in order to witness desired outcomes within a specific period.
If briefly said, all startup businesses require strategic planning to level up their business goals within a short time. It is like a chain where you can see different spots to start, manage and complete the business mission. This is a path from ‘where are you now?’, ‘where do you want to be?’ to ‘how will you get there?’. When the business answers these questions, there is ‘strategic planning’.
Expand Wider with Marketing
Marketing is the boss of all startups in Singapore. Since Singapore has a population that is too tech savvy and its internet penetration rate is above 96.6%, digital marketing plays a vital role when marketing strategies are concerned. Startup companies can benefit significantly from innovative and digital marketing initiatives as it expands brand awareness capacities which ultimately enhances the clientele. Brand awareness and reaching out to a wider audience increase ROI for startup companies. Therefore, marketing is one aspect that you can not miss out on in your startup business journey in Singapore.
On the Way from Zero to the Top
In this handbook, we have discovered the different steps of a successful business startup in Singapore, where the industrial landscape highly supports new companies in the making. From funding to company registration, etc., this country opens its hands to new businesses seeking success.
Suppose you already own a small business or are planning out your business journey in Singapore. In that case, this guide will help you to execute a victorious mission in this highly competitive landscape. From planning out the business structure, choosing the fruitful name, prioritising legal work and accounting, and creating a roadmap to strategic and marketing planning, we have covered everything you will need to broaden your business capacities and witness new horizons quickly.
