Starting your own business in Singapore is exciting, but there are important rules and steps you need to follow to ensure your business is legal and compliant with local laws. These are known as legalities, including the rules, laws, and procedures that ensure your business operates correctly. It may seem complicated, but don’t worry! We’ll break it down for you in a simple way so you’ll know exactly what you need to do when starting your business in Singapore
The first thing you’ll need to decide is how to set up your business. This is called your business structure. In Singapore, you have several business structure options to choose from:
Your business structure will affect your tax obligations, liability, and how your business operates, so make sure to choose wisely.
After selecting your business structure, you must register your business name with the Accounting and Corporate Regulatory Authority (ACRA) in Singapore.
If you’re using a name other than your own, you need to make sure it’s not already in use by another business. You can easily check for name availability on the ACRA website.
Once you find a name you like, you’ll need to register it through the ACRA’s BizFile+ portal to make your business official. This will also make it simpler for customers to find and recall your business.
Depending on the nature of your business, you may need specific permits or licenses to operate legally in Singapore. A permit allows you to carry out specific activities, such as selling food or using certain equipment. A license grants you legal permission to operate your business in Singapore.
For example, if you’re starting a food business, you’ll need a Food Shop License from the Singapore Food Agency (SFA) and may also need a Food Safety Course certification. If you plan to run a daycare or pet-sitting service, specific licenses and permits will be required. Be sure to consult the relevant authorities to determine the requirements for your business.
Yes, businesses in Singapore need to pay taxes! Corporate tax is calculated based on the profits your business generates. As a new business owner, it’s important to keep track of your earnings and expenses. Keeping a separate bank account for your business will simplify managing your finances and calculating your taxes.
You will also need to obtain a Tax Identification Number (TIN) for your business. This helps the Inland Revenue Authority of Singapore (IRAS) track your tax payments. Make sure to file your annual tax returns to avoid penalties.
Singapore has a relatively simple tax system, and small businesses may also qualify for tax exemptions or rebates, so be sure to research these benefits and take advantage of them!
To protect your business from unexpected risks, consider getting insurance. Insurance covers things like accidents, property damage, or legal claims against your business. Choosing the right type of insurance based on your business activities is essential.
For example, if you’re running a delivery service, you might need insurance for your vehicles. If you’re selling products, product liability insurance can help if something goes wrong with your product. Make sure you understand what type of coverage your business needs.
As your business develops, you may need to hire staff. In Singapore, you need to follow the Employment Act and other labor laws to ensure that your employees are treated fairly. This includes paying them the correct wages, providing leave, and ensuring workplace safety.
You must also register your employees with the Central Provident Fund (CPF) to contribute to their retirement savings. If you’re hiring foreign workers, you must comply with additional regulations, such as work permits and employment passes.
Starting a business in Singapore is an exciting journey, and understanding these legal steps will help you stay on track. By choosing the right business structure, registering your business name, obtaining the necessary permits, paying taxes, protecting your business with insurance, and following employee laws, you’ll set your business up for success. For expert guidance, consider utilizing Singapore corporate services to ensure compliance and smooth operations.
While it may seem like a lot, just take it one step at a time. With the right knowledge and preparation, you’ll be ready to run a successful business in Singapore and take on the world!