Singapore is looked upon as one of the most business-friendly countries in the world. For this reason, many entrepreneurs and investors choose this island. The perks offered for commerce and trade blow other competitors out of the water. But before you dive in head first, take some time to delve deeper into certain considerations you should take to ensure that your business starts off on the right foot. Working smart is better than working fast.
Smartly Register Your Business
Have a strong and clear vision of what kind of business you want to create. There is no room for ambiguity or indecisiveness. Once the concept is decided, focus on selecting the right business structure for your company. Weigh the positives and negatives of a sole proprietorship against a general or limited partnership. Consider whether a corporation or limited liability setup is best. Once you are aware of the pros and cons of each type of structure and have made the best choice possible, register your business. Realize that business structure can bring perks.
If you register your business as limited liability, you become eligible for special audit exemptions. To qualify, in addition to being a private limited enterprise, your company must fulfill two of the following; total yearly revenue must not surpass ten million Singapore dollars, total annual assets must be below ten million Singapore dollars or employees should number less than fifty. Be mindful that although your company may qualify, unaudited financial documentation still needs to be compiled. This would include your profits and losses documents, all financial statements, and detailed balance sheets.
Determine What Permits And Licenses You Need
Depending on the type of business you are seeking to open, specific licenses and permits may apply. Pay special attention to these details as failure to comply could result in legal penalization that can put a dark cloud over your newly forming venture. Click here to find out more. If you are looking to develop a hotel or anything of the like, on a bigger or smaller scale, the first of many permits is the hotel keepers license. Further licenses are needed for spa and swimming pool services. For food and beverage businesses, apart from the standard liquor license, halal certification and an import-export food license may be applicable. The key is to read the information extensively and thoroughly to not miss any applicable point.
Hire The Workforce
Of course, you won’t be running the company alone. Get some staff members on board. Open up the company to shareholders. These can be individuals or other businesses, local to Singapore or foreign. Appoint as many directors as you want but ensure at least one is a Singapore native. As a non-resident, you can only retain the primary directorship of your company if a secondary director is a local.
And if you think hiring a secretary is not needed or can be done by anyone not officially appointed, this is not so. The legislature obligates that this position is filled forthwith, within the first six months, by someone who is solely dedicated to the task of managing, compiling documents, and reporting as necessary to the government whatever information is necessary. Establish an intimate knowledge of the employment act, which outlines very clear guidelines for work. These include making sure payment is received no later than a week after its scheduled date or period. Be fair and respectful of medical leave and vacation and rest days. Learn about what constitutes a valid contract and the legal means by which one can be broken.
Learn The Tax Laws
Singapore is loved by many businessmen because the country safeguards their revenue. The corporate income tax is set at seventeen percent. Some companies will qualify for a tax exemption that extends for three years as a start-up grace. Others will receive partial exemptions, as long as they fit the requirements. Does your business qualify? It’s important to know for certain as you are in business to make a profit, not to gift away money unnecessarily. Be clear on what income is chargeable and what is safe from taxation. Due diligence on this matter will only serve you well.
Choosing to initiate and grow a business in Singapore is the right move. If you are a non-resident, then what it ultimately comes down to is being well versed in the laws of the country. This is not to scare you away, for this island has done much to make its commercial sector appealing to the investor. Enlist the help of trusted and credited individuals and companies to protect your venture from the start.