There are numerous ideas for new businesses in Singapore. It is up to you to decide the business model you will go for. It can be a sole proprietorship, limited liability partnership, or even a private limited company. The best option is the latter, as a private limited company provides better incentives.
If you are aiming for long-term success, then a private limited company is again the best option. Some people argue that a private limited company is for larger businesses and requires more funds, but this is not the case. You can set up a small business and still register it as a private limited company. Remember, even if you are a foreigner, you will receive the benefits that Singaporean citizens enjoy when you set up a private limited company. The cost of setting up a private limited company can be high, but it has a legal structure that shields you from personal liability.
Why you should register your business as a private limited company
A private limited company will by far be the best option for new, small businesses. As a private limited company, you are in a position to easily raise funds if want to expand your business. You can also receive tax incentives like exemptions, maintain your brand image, and your personal assets cannot be seized in case of debt. It is very important to have your business incorporated as one of the Singapore registered companies. It is also important to note that private limited companies do have a perpetual existence. You are advised to seek the services of experts so that the process will not be costly, and so you will avoid making mistakes. Possible mistakes include:
1. Setting up a business without a qualified or competent CPA
Incorporating a private limited company in Singapore involves the same procedure, whether you are a citizen or a foreigner. It is recommended to seek professional advice from a certified professional accountant before committing your funds towards setting up the company. For instance, you will be educated on how the various legal structures can affect the taxation of your company, or whether the government provides grants and tax exemption schemes. You can hire services from a CPA firm to act as your incorporation agents.
2. Running a company without the required licenses
You do not begin running whatever activities you want to in your business after setting up your company. You have to know all the kinds of business licenses and permits required. Once you know the licenses you need, then you can request your agent to assist in applying for them. One of the biggest mistakes you can make is beginning your business activities without the required licenses. This is because you can be fined heavily or incur heavy penalties.
3. Setting up the business and then failing to sell
If you want your business to operate continuously, then you have to conduct business by selling. You have to sell products to generate revenue. Your business cannot be in existence if you do not conduct any sales. Use the correct marketing strategy, like offering deals, which will always win customers’ loyalty.