Mistakes to Avoid When Incorporating a Business in Singapore
Singapore has earned itself a name as one of the easiest places to do business in the world. The business registration is hassle-free, taxes are low and friendly, and there is top-notch technology, all of which favor doing business in the Lion City. Also, the government offers lots of support to entrepreneurs.
Despite all the favorable factors of doing business in the city state, becoming an entrepreneur in Singapore comes with some related costs due to the need to take risks, to experiment, and to handle some uncontrollable circumstances. Although some mistakes are inevitable, you can avoid others by having elaborate plans and being diligent.
Here are some mistakes that entrepreneurs should steer clear of when incorporating a business in Singapore:
Choosing an inappropriate business structure
Singapore offers a wide variety of business structures or legal entities that your business can take. Your business can be a sole proprietorship, partnership, private limited company, etc. The type of business structure should not be a random thought, but rather well considered. You should choose the structure after careful planning and weighing in on the one that best fits your products, experience, knowledge, business objectives, and the prevailing conditions. You must bear in mind that whichever business structure you settle for will determine the advantages that your business will enjoy. There are legal and financial implications for each of the structures.
Doing the incorporation process yourself
Singaporean law prohibits non-resident individuals and legal persons from self-registering a company. As a foreigner entrepreneur, undertaking some steps on your own—possibly due to being unaware of the requirement—will make your business incorporation unsuccessful. Should you intend to move your business to Singapore, you should first obtain EntrePass so you can act as the local director of your company. Better still, engage a reputable and reliable incorporation services firm to help you, like Visa Express.
Poor business name selection
It is very risky to ignore the business name approval process in Singapore. Your business name shows what your business stands for and its intended mission in the market. It would be a costly and complex problem to try to rectify your business name later on if you choose one without due consideration and later find it inappropriate. The foremost thing when choosing a business name is to ensure that it is not identical to that of another existing business. Check with ACRA for availability of the name. Also, the name must not have any vulgar words, or refer to Singapore’s national symbols.
Poor location selection
You need to select a location that is favorable, for instance where there are not many similar businesses. Locating your business in an area with several other similar businesses, for example, opening an Indian curries eatery where there are others already, will expose you to tough competition. Choose a location with enough customers and fewer competitors. In addition, research the area well and use surveys such as those at https://www.qualtrics.com/blog/create-online-survey/ to see if people in that area are interested in your product.
Employing unsuitable staff
It is crucial to hire top-notch staff, even if the process will take you longer. Your business’s first staff members will form the foundation of your business, so carefully select the best ones. Avoid the temptation to rush through the hiring process because you require workers immediately. Remember, those first staff members can determine the prosperity or downfall of your business.