How to Set up a Local Business in Singapore

Registration of a local business in Singapore has been easier than ever. However, if you have issues on how to register a business in Singapore, you may contact our expert teams in 3E Accounting to help successfully set up your business.

How to Set up a Local Business in Singapore

Many envision becoming a business owner. It is a grand goal many dream of having, but only very few succeed in. The enterprise journey, therefore, is not just about having something to offer. Rather, it is more about being able to manage every business aspect into your goal.

The most crucial part of setting up a local business in Singapore is being able to build your foundations. From the very start, you need to have a clear image of your operations. It should be more than just aiming to profit. You should also always plan and strategize on how to sustain the business for the years to come.

This article outlines the basics you should cover in starting a local business in Singapore. Here, we will guide you on the details you need to carefully plan before and during your business registration.

Planning your Business

It would be a lot easier to plan your business before registering your local business in Singapore. It will help you carefully map out your capacities, limitations, and goals.  Here are the minimum things you should think about before registration.

  • Company Name
  • Business Structure
  • Company Size
  • Principal Address
  • Financial Year End
  • Personnel
  • Suppliers and Logistics
  • Marketing Strategy

It is most advisable to conduct a feasibility study before setting a local business. This will help you gauge how suitable your products and services are to the needs of your target market. Further, this will also help you assess if there is enough demand to sustain your business. Or if it is not enough, it will help you strategize on how to better sell it to them.

Exemptions From Business Registration

Business owners should always register their enterprises to comply with the legalities of the law. Moreover, registering your business will also provide you the protection and incentives provided by law to support businesses.

However, there are certain exemptions to this. Business owners who intend to set up a business as an individual using their full names are exempted from the registration. Similarly, a group of individuals will also be exempt from registration if the name of the firm is the full name of the individuals.

Other exemptions include:

  • Any institution, authority, fund, or person whose income is tax-exempt, as the Income Tax Act indicates;
  • Societies registered under the Societies Act or the Co-operative Societies Act;
  • Mutual benefit organizations registered under the Mutual Benefit Organisations Act; and
  • Trade unions under the Trade Unions Act.

The Registration Process

To register your local business in Singapore, you can simply make an online application on the Accounting and Corporate Regulatory Authority (ACRA) webpage. This application process only takes, on average, 15 minutes to complete.

On the ACRA webpage, you are guided on the steps you will have to take, the fees to pay, and the documents to submit. Some will have to get approval from certain agencies before they can register their business. For example, businesses under the industries of architecture, real estate, and defense must get approval from their related agencies.

Your online application for business registration will require the following information.

  • SingPass login
  • Entity information
  • Business activities
  • Business address
  • Information about the business owners

One year registration of sole proprietorships, partnership, and limited liability partnerships (LLP) will require a registration fee of $115. Moreover, you can also register for 3 years of validity, with a fee of $175. For corporations, the standard incorporation fee is $315, inclusive of the registration of the business name.

Contact Us

Registration of a local business in Singapore has been easier than ever. However, if you have issues on how to register a business in Singapore, you may contact our expert teams in 3E Accounting to help successfully set up your business.