A Step by Step Guide to Registering Your Business in Singapore
Did you know that compared to the global average of 50%, 74% of millennials in Singapore work to establish their business and become their own bosses?
Source: https://sbr.com.sg/economy/commentary/sweet-trap-entrepreneurship
In Singapore, 44,317 new business entities were formed and registered with ACRA in the first eight months of 2021.
Source: https://www.acra.gov.sg/training-and-resources/facts-and-figures/business-registry-statistics
Ideally, all businesses must register themselves with Accounting and Corporate Regulatory Authority (ACRA) unless they are exempted from doing so. Registering your business with ACRA provides certain benefits, including:-
- Easy access to your business by customers.
- Allows the public to gain and verify information about your business.
- Gain government funding for the company.
4 Simple Steps to Register Business in Singapore
Here’s a step-by-step guide to simplifying the process of registering your business in Singapore. Let’s dive in!
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Zero in on the Business Structure
The formation of a business entity begins with choosing a business structure. The four main types of business structures are sole-proprietorship or partnership, limited partnership, limited liability partnership, and companies (private & limited). So, now the question is – how to select a business structure? The answer is simple – by identifying various needs, including the capital to invest, risks in the business, the number of owners, and their liabilities & responsibilities.
In addition, you need to specify your primary and secondary business activities by picking and submitting a Singapore Standard Industrial Classification (SSIC) code, a code that indicates the activities and field of your business.
2. Pick Your Business Name
After selecting the business structure, the next task is to reserve a name for the company and have your filing agency legalize it in ACRA. But before providing the name to the filing agency, you should check whether the name is available or not through BizFile+, the business filing portal of ACRA.
Look for a unique name that helps you distinguish your company’s name from the existing ones and indicates your business activities clearly. After the approval of your proposed name, register the business within 120 days, or else someone else may beat you to it.
3. Register Your Company Address
Next, get your business address registered with ACRA. In the case of being a sole proprietor, your residential address can be used as your business address under the home office scheme. However, for companies and LLPs, a registered company address is where the public has access during working hours, which means it needs to be somewhere other than your residential address. Furthermore, the records and registers of the company are kept at this address.
4. Finally, Register Your Business With ACRA
After following all the above-mentioned steps, the final task is to register your business with ACRA. After all the requirements are fulfilled, you need to register your business online which takes less than an hour. In rare cases, when the application has to be referred and approved by another agency, the registration process may take between 14 to 60 days.
Upon the successful registration of your business, you receive the business details and a Unique Entity Number (UEN), the ID for your business.
Seek Professional Guidance
However, by following the right procedures and steps, your business registration can be made smooth and hassle-free. Follow the DataTracks blog for more information about registering and running a business in Singapore.