
“Starting a business in Singapore” - By Sg-classified
1. Do your homework
Visit one of Singapore’s embassies, high commissions and consulates around the world, to find out more about Singapore. Here’s a list of our Foreign Ministry’s missions and consulates.
If you have the time, visit Singapore and see for yourself. Most visitors will get a social visit pass. But if you need to stay in Singapore for a longer period to explore business opportunities, you can explore the Social Visit Pass for Entrepreneurs. This can be extended if necessary. Find out more about entry to Singapore at the Immigration & Checkpoints Authority (ICA) website.
The Action Community for Entrepreneurship (ACE) brings together a diverse group of people who want to contribute towards the creation of a more entrepreneurial Singapore. Experiences are shared on their website.
2. Take the first step
Once you’ve decided you want to start a business here, you need to apply for the EntrePass. It is valid for 2 years and is renewable as long as the business is an ongoing entity.
The application form can be downloaded here. Find out more about the EntrePass at the Ministry of Manpower’s website.
3. Registering your business
You can set up almost any kind of business in Singapore. Special licenses are needed only for a handful of businesses, such as finance companies, banks, optical discs, and cigarette manufacture. EDB is the administrator of the Control of Manufacture Act (which licenses the manufacture of beer and stout, cigars, drawn steel products, chewing gum (other than medicinal gum and oral dental gum), cigarettes, and matches), and the Manufacture of Optical Discs Act, (which licenses the manufacture of optical discs, including master discs and stampers).
If you represent a foreign company you may want to establish just a representative office (RO). In this case, you register your rep office with International Enterprise Singapore (IE Singapore). IE Singapore registers ROs from the manufacturing, trading, trade logistics and trade-related services sectors for a nominal fee. You can find out where the nearest IE Singapore office is here.
However, rep offices can only undertake promotional and trade liaison activities on behalf of its parent company. It cannot conclude contracts, provide consultancy for a fee, undertake shipment of goods, open or negotiate any letters or credit.
If your business plans are more extensive, you should register a business or a company with the Accounting & Corporate Regulatory Authority (ACRA).
(”Starting a business in Singapore”)
4. Finding premises for your business
There’s plenty of choice when it comes to where to locate your business. You can even run a business from your home. Find out what you may need to do to use your home as an office at these sites:
You can also check out the business premises offered by the 50 or so business incubators in Singapore. These incubators provide services such as “plug and play” facilities, technology collaboration, business building and acceleration, fund raising, networking and mentorship.
There is an island-wide belt of accessible, choice locations for entrepreneurial operations called HOTSpots, “HOT” meaning “Hub of Entrepreneurs”. These HOTSpots link a community of some 50 incubators and 400 technology startups and entrepreneurs.
Events such as Elevator Pitches and Investment Seminars to raise funds, and Technology Seminars and Market Pitches to find business partners, as well as networking opportunities, are regularly held at HOTSpots. Organisations that organise or sponsor these events include the Singapore Venture Capital Association (SVCA), the Innovators and Entrepreneurs Association (IdEA), and the Intellectual Property Office of Singapore (IPOS).
5. Getting some funding
Singapore is home to a vibrant and sophisticated venture capital industry, with more than 140 local and international VC fund management groups handling, at the middle of 2003, some S$16 billion worth of funds out of Singapore. These funds are invested globally across all industry sectors at all levels of financing.
The Singapore Venture Capital Association was formed in 1992 to promote the growth and development of the venture capital industry.
The DEALS Portal aims to match companies seeking venture funding to Singapore’s venture capital community. You can register and upload your business plan at the DEALS Portal and it will automatically match and direct your plan to the appropriate VCs in Singapore.
Banks are generally unwilling to extend credit facilities to startup enterprises as they lack a track record and assets for use as collateral. We have thus designed programmes and schemes to help startups with funding.
This agency, SPRING Singapore, manages two funding schemes for startups:
The Micro Loan Program is a fixed interest rate financing programme for startup and small enterprises, particularly those that are asset-light and knowledge-intensive. Enterprises can use the loan to establish new businesses, modernise and automate operations, expand existing businesses, and augment working capital needs.
The Loan Insurance Scheme offers loans that suit the risk profile of the borrowers, with the interest rate based on the startup’s credit assessment.
Other types of financing scheme for startups are available.
6. Protecting your intellectual property
If you have a proprietary technology, you should file a patent to protect it. The Intellectual Property Office of Singapore (IPOS) is the agency that looks after this. It has a slew of initiatives that promote the creation and exploitation of IPs. For more information go to the IPOS website.
The Patent Application Fund Plus encourages innovation and the commercialization of IP. It helps defray the cost of patenting, up to S$30,000, and is available to all Singapore-based small and medium enterprises. Find out more here.
7. Developing your business
If you need help to commercialize and market your product or service, there are many avenues you can explore.
Business associations like the Singapore Business Federation and the Singapore Confederation of Industries represent and promote the business interests of Singapore enterprises. They can help you plug into Singapore’s business networks via their seminars and events, and their trade partnerships and business matching efforts.
The Infocomm Authority of Singapore (iDA) has a Call for Collaboration initiative which encourages collaborative efforts in exciting areas such as mobile commerce and wireless multimedia. This creates opportunities for you to network, build up your referral base and profile yourself to potential business partners.
The Management Development Institute of Singapore (MDIS) conducts programmes, courses and seminars on business, marketing and management that you might find useful.
The Institute of Public Relations of Singapore represents the public relations industry in Singapore. It provides an online one-stop solution to companies seeking PR consultancy and other services.
“Starting a business in Singapore” - By Sg-classified
Filed in Start a business