Checklist for setting up a business in Singapore

The following checklist for setting up a business in Singapore will help guide and drive your focus on what's important:

1. Select the legal form for your company

The following are the most common forms of legal business entity:

· A sole proprietorship 

· A Partnership

· A Limited Partnership

· A Limited Liability Partnership

· A Company

· A Business Trust

2. Select the name of the company 

You have to select a name for your company. The name of the company in Singapore must be approved by ACRA before its incorporation. The ACRA can reject the name of the company on the following basis. 

· The company’s name is identical to any other existing company. 

· It is undesirable. 

· The ACRA can reject the names and trademarks which are similar to famous companies. 

3. Write your business plan 

You have to create a plan to start your business. Set your short-term and long-term goals, mission, vision, and create key milestones. It will enable you to track and monitor your company’s progress. 

A business plan is also important for the company to furnish the banks, potential investors, suppliers, and trade partners. It will secure loans and credit facilities. A business plan will give them the idea that you have strong grounds of your business that will result in visible economic activities.

4. Memorandum and Articles of Association 

The constitutional documents of the business are also important before setting up your business in Singapore. These constitutional documents include the Memorandum and Articles of Association. They help create the key characteristics of the business and determine how the company is regulated and how the company members interact. 

All the Singapore Companies must have an M&AA. You can either have the designed M&AA from the Companies Act or can create one for you. 

The memorandum of the company specifies the company’s characteristics and must have the following: 

· The name of the company

· The details about the company’s share capital 

· The full names, addresses, and occupations of the subscribers to the memorandum

· A statement that indicates the subscriber's desire to form the company and their agreement to take up shares in it.

The Articles of Association contains provisions that regulate the internal management of the company. The companies are free to create content for their articles. But the Articles of Association normally deal with the following company matters:

· The problems of share capital and the variation of rights of the shares

· Liens and calls on shares, and transmission and loss of shares

· The process of general meetings of the company.

The legal effects of Memorandum and Article of Association

The M&AA is considered as a statutory contract between the company and the members. The contract also stands between the members of the company and also binds the new members that are appointed in the company after its incorporation. 

If the company or a member is not complying with the Articles, it may result in procedural irregularity. If the non-compliance is by a company, then a member can obtain a declaration to make the company comply. However, if the non-compliance is by a member then another member of the company can obtain the declaration for damages. 

5. Incorporation of the Company 

Incorporating a company will provide you with a business registration number that will allow you to open your company bank account, Ministry of Manpower, see your IRAS, Central Provident Fund, and other legal and regulatory matters. 

6. Open your company bank account 

To open a bank account you have to select a preferred bank. You can search for the best banks in Singapore that meet your requirements, through the internet. 

7. Lease an Office, Warehouse or Retail Space

You probably have arranged a large amount from your capital for the rental expenses, when you are planning your business functions for the first few months. Generally, a company has to pay 3 months of rent in advance to the property owner. The 1 month’s rent is for the first month’s payable rent, the other two month’s rent is for the security deposit. 

For some companies, it is better to purchase the property rather than renting it. Specifically for the companies who are planning long-term businesses should purchase the property. It can save their monthly expenses and at the end of mortgage payments, the company would own the land. 

8. Obtain Licenses and Permits 

The following business entities may require a license or a permit to run their business legally: the advising on finance, investments, capital markets and other financial activities, the preparation of meat or food products, broadcasting and publishing, and the sale of alcohol, tobacco or explosives. 

The following business fields also need licenses: building contractors, banks, insurance carriers, accountants, lawyers, and real estate agents. 

9. Tax Registration of Goods and Sales 

The following business entities need to register their company for GST:

· The companies that have more than $1 million taxable turnovers for the past 4 quarters.

· The company is currently making sales and the expected taxable turnover in the next 12 months is more than $1 million.

In such a situation, you may need to apply for the GST registration within 40 days of the date on which your registration liability arises. 

You can also register for GST voluntarily if you feel your business can allow you to do so.

10. Hire Competent Employees 

Before hiring any employee or hiring yourself as a full or part-time employee you need to consult the labor laws of Singapore that are known as the Employment Act and its regulations. 

You have to register under the government authorities like the Ministry of Manpower, and the Central Provident Fund. The Central Provident Fund contributions are necessary for any employee working in Singapore who earns at least $50 a month. The Singapore resident employees are also eligible for other liabilities like Medisave contributions. 

If you are going to hire more than one employee you are required to set up a system processing payroll to your employees. According to the Work Injury Compensation Act, you may also need to obtain Insurance for certain types of employees. The employers must maintain work injury compensation insurance for all the employees that are involved in manual work and non-manual employees that are earning less than $16,000 a month. 

If an employer is unable to perform the insurance duties, he has to deal with the penalty of a fine of $10,000 or imprisonment of up to 12 months. It is not necessary to maintain the insurance for a non-manual worker who is earning more than $1,600 a month. However, if the employee claims for the insurance you have to compensate the employee accordingly. Employers can utilize more than one insurance policy to cover the liabilities under the Work Injury Compensation Act. 

Companies that already have insurance policies can choose to adjust the existing policies. They have to ensure that their insurance policies meet the criteria under the WICA. 

11. Set up an Accounting and Record-Keeping System 

The company must have to set up an Accounting and Record-Keeping system. In this way, they will be able to easily comply with the laws and regulations about taxes, filings and other submission to the authorities. 

The company has to keep its documents for a certain period. These documents include a list of key principals and their addresses, copies of all incorporation documents, financial statements, annual reports, and changes to the company’s register, etc. 

12. Maintain your business identity and ensure your presence

At this stage, you may have already developed a domain name for your company. Now you have to develop a business website or hire a professional to create and run your website. 

In addition to this, you can also create your business cards, brochures, letterhead, and other promotional items. These marketing strategies will help your business to nourish fast. You can hire a professional to create a business logo for you. It is extremely beneficial in the long run so you can easily invest some money on them. All these marketing strategies are important to make your business stand out in the business marketplace. 

Once you have all these items, you can take your company in the market depending on your focused business and marketing plans. Once you have all these, you can proceed to market your new company according to your focused business and marketing plans.