Pros And Cons Of Starting A Sole Proprietorship Business In Singapore

Singapore isn’t recognised as one of the top places in the world to do business for nothing. No matter the size of business entrepreneurs have in mind, whether starting a small venture or setting up an offshore or multinational firm, the Lion City has just the right combination of strong government support, infrastructure, and talented pool of local and international talent that makes any business for Singapore company formation a worthwhile investment.

What’s more, Singapore offers a variety of business entities to cater to a wide range of business models. If you’re thinking of taking baby steps to launch your entrepreneurial career in the Lion City, you can do so by having your business registered as a sole proprietorship.

What is a sole proprietorship

Most neophyte entrepreneurs who want to start off small prefer to register their business as a sole proprietorship. Under this model, the business is owned by one person, who is called a sole proprietor. Being the sole owner, the sole proprietor has absolute control over the business.  

The sole proprietorship business entity is a popular choice amongst new entrepreneurs and it’s easy to understand why. It’s the simplest, most basic form of business registration, which means it is the easiest and cheapest to set up amongst other legal entities in the Lion City.   

Small and medium enterprises (SMEs), independent professionals who offer freelance, consultancy, or contractual services, and service providers like designers and copywriters prefer to register their venture as a sole proprietorship as it offers convenience in terms of registration, paperwork, and management.  

How to register as a sole proprietor

Being a simple and basic legal entity, it is easy to register as a sole proprietorship for Singapore company formation. You can even do the procedure yourself or you can engage a company formation service if you want to be thorough in following all the various steps in the formation of a company under sole proprietorship.

In a nutshell, all you need to meet are a few requirements to start a sole proprietorship business in the Lion City. You must be at least 18 years old or older and a citizen, permanent resident, or EntrePass holder of Singapore.

If you are not Singapore citizen, resident, or EntrePass holder, you should appoint a Singapore resident to be your authorised representative. If you are self-employed, you are also required to top up your Medisave account with the CPF Board before you proceed to register your sole proprietorship business.  

Advantages and disadvantages of starting a sole proprietorship

All business entities in Singapore carry with them certain characteristics that may or may not be ideal for specific business models. Before you opt for a sole proprietorship, it is important that you understand the unique features of this legal entity and compare them to the needs of your business. 

It is recommended that you hire a company formation services in Singapore to help you understand better how you can benefit from a sole proprietorship or not, should you decide to register your business as one.

Pros

● Easy to set up: If you want to start a business in Singapore right away, choosing to register as a sole proprietorship is your best bet. Local entrepreneurs prefer this legal entity when they’re looking to start off small before registering as a private or public company should they decide to expand. 

    

● Low registration cost: Compared to setting up as a private or public company for Singapore company formation, registration for sole proprietorship is more affordable. 

● Less compliance requirements: Compared to running a private or public company, you won’t need to meet a lot of compliance requirements to run a sole proprietorship business. You don’t have to file tax returns annually and just need to renew your membership every year.

● You have absolute say on running the business: Since you are the sole owner, you have full control of the business. You don’t have to consult anyone when making a business decision or on any matters related to managing the business. 

● Business profits are all yours: Being the sole owner, you don’t have to share the profits of the business.

● Easy to dissolve: Should you decide to terminate business operations, you can do so easily as you are the sole owner and decision maker.

Cons

● There is no separate legal entity: You, as the sole owner, don’t have an entity or personality that is separate from the business. You and the business are considered as one. This means that you can be held personally liable for any debts or losses incurred by the business. 

● The sole proprietor has unlimited liability: Since you don’t have a legal entity that is separate from the business, your liability is infinite. Legal actions that are taken against the company are also taken against your own name. Since you are liable for the debts and losses, you don’t have control over your personal assets.

● Not eligible for corporate tax benefits and incentives: Calculation of your taxes is based on your personal income, since you and the business are considered one and the same. You are not eligible for any tax benefit or incentive that most companies enjoy.  

Raising capital and securing loan are a challenge: It may depend on your credibility should you need to increase your capital or secure a loan. Most banks prefer to grant loans to companies as they are more credible.

Refer to these pros and cons to come up with a sound decision when thinking of setting up a sole proprietorship in Singapore. Should you opt to register as one, you can make the process of business registration easier by hiring a company formation service. 

Fuss-free sole proprietorship registration with a company formation services in Singapore

Apart from giving you expert insights when deciding to sign up as a sole proprietor, a company formation services in Singapore can make the process of registering a sole proprietorship business easier and hassle-free.

These professional services providers are adept in all aspects of business registration and company incorporation of all kinds of businesses. A company formation service can provide you with specialists to handle all your registration requirements as well as filing of essential documents, ensuring that they are filed timely and in an efficient manner.

Should you decide to expand your business, you can also count on company formation services in Singapore to guide you on which type of company suits your business best. You can ask them for tips and advice on the cheapest offshore company formation or how you can go about the steps of company formation with bank account.     

  

Whether or not you decide to sign up for sole proprietorship, know that arming yourself with essential information before registration is key to successfully set up this kind of business. With the help of an expert company formation firm, you can weigh the pros and cons easily and simplify as well the procedures you need to complete to start a sole proprietorship business in the Lion City.  

4 Popular Types of Crowdfunding in Singapore

Are you a newbie entrepreneur setting up a company in Singapore? Are you looking for ways to fund your business idea? Then you might have already considered crowdfunding. Though crowdfunding is still a relatively new financial concept in Asia, it has significantly gained traction in the Singapore business scene.

What is Crowdfunding?

Crowdfunding is a way to raise money or ‘fund’ from a large number of people—‘crowd,’ usually done via an online platform. Crowdfunding is very promising for a startup haven like Singapore as it has the likelihood to strengthen entrepreneurship by expanding the network of investors that could invest in a business idea as opposed to just tapping on your personal network or resorting to traditional financial instruments given by banks and other financial institutions.

There are four kinds of crowdfunding in Singapore specifically targeting different needs. These are donation, reward, debt/lending, and equity crowdfunding.

1. Donation-based crowdfunding

Donation-based crowdfunding is where individuals give out or donate money without expecting anything in return. Most of the time, donation-based crowdfunding are utilized by charities and other altruistic causes. Even if the funding goes to a business, donors do not expect anything in return—no shares, freebies, or product/service in return. Knowing that they have given to a worthwhile cause or something that they believe in are enough for the crowd on this kind of model.

2. Reward-based crowdfunding

Reward-based crowdfunding is a lot like the donation-based model in the sense that the crowd that supports a cause or a business does not expect monetary gains for their pledge and knowing that they are integral to the success of the cause is enough for them. But unlike donation-based, they get a reward in ‘kind’ like a simple token or actual product/service of the venture. These are often used by startups that have an out-of-the-box idea or cause.

3. Debt-based crowdfunding

Debt-based or lending-based crowdfunding can be likened to buying bonds. The investors expect a return to their investment from the venture. Both the borrowers and investors would have an agreement to pay back the money lent with a predetermined interest at a predetermined date. This type of crowdfunding is best for SMEs as they have a more difficult time to get funding from public listing or limited access to traditional financial instruments. This will give them enough liquidity to get the company started and interests are usually revenue-based to ensure that the startup survive. For investors, this is a great way to create passive income in the short-term from surplus cash while at the same time supporting local ventures. You can tap this kind of crowdfunding through the following platforms:

•    FundedHere

•    CoAssets

•    Funding Societies 

•    MoolahSense

•    New Union 

•    Capital Match

•    Crowdo

•    Entreexchange

•    Kyepot

•    Seedin

4. Equity-based

The equity-based crowdfunding is where the investor is offered a stake in the company in exchange for funds being lent. This can be likened to buying stocks from publicly listed companies but the ventures are private and not listed. Thus, monetary gains are derived from the increase in share value and dividends. This kind of crowdfunding model suits startups that are quite innovative and out-of-the-box or targets a very narrow or niche market. Such kind of ventures often faces financial constraints to bring their ideas to fruition. It's the ingenuity of their idea that will also help them attract media attention and peak the curiosity of potential investors that will eventually help them raise the needed funds. Equity-based crowdfunding, in essence, democratized venture capitalism that serves and elevates the interests of both the capitalists and the startups. The introduction of crowdfunding platforms made the whole process accessible and open the doors to many small-time investors

An added note, often referred to as securities-based crowdfunding, both lending based and equity-based crowdfunding model are regulated by the Monetary Authority of Singapore (MAS) under the  Securities and Futures Act (SFA).

If you are thinking of setting up a company or have recently completed with your company incorporation in Singapore and are looking to fund your business, Corporate Services Singapore has company incorporation services that will guide you throughout the process of setting your business to choosing the right crowdfunding platform. Contact us to get a free quote within 24 hours.

Top 5 Reasons to Venture into the e-Commerce Business in Singapore

Here are 5 Great Reasons Why Singapore is the Prime Location for Starting Up an e-commerce Business

Choosing The Right Office Address in Singapore

Take a look at this list of 8 important factors when choosing an office address to make the right decision in deciding the right work space and location that can bring positive impact to your business.

Read article at https://www.corporateservicessingapore.com/8-factors-to-look-out-for-when-choosing-the-right-office-address-in-singapore/

For more information, please visit https://www.corporateservicessingapore.com/company-incorporation/

Top 16 Benefits Of Engaging Outsourced Accounting And Bookkeeping Services

Look at these top 16 benefits of outsourced accounting and bookkeeping services that can provide for your business. Look at the key considerations are before implementation.

Source: Top 16 Benefits Of Engaging Outsourced Accounting And Bookkeeping Services

For more information about outsourced accounting, click here.

Top 5 Most Successful Businesses To Set Up In Singapore For 2018

Singapore continues to be a haven for entrepreneurs looking to pursue business success. Over the years, the Lion City remains steadfast in its vision to build a landscape where various industries can thrive and contribute to the country’s economic growth. Backed by solid infrastructure and transportation facilities, low tax rates, high GDP per capita, and a corruption-free business environment, no wonder Singapore continues to be a preferred destination for company incorporation of up and coming entrepreneurs.   

As Asia’s globalcentre for business, innovation, and talent, Singapore not only focuses on the existing industries that have made it a force to be reckoned with in the global business arena. On top of robust and dynamic industries like electronics, medical technology, and infocomm services, the country also sets its sights on nurturing emerging fields to sustain its growth whilst providing more employment opportunities for its pool of skilled and talented professionals.

In 2018, new entrepreneurs, whether local or foreign, can look forward to new business ideas that offer lucrative income opportunities when they choose to set up in the Lion City. The best part is that Singaporecompany incorporation is hassle-free when they venture into these businesses as the government has made it quick and simple to register a business for new entrants.

And with a number of company incorporation services in Singapore, forming a company in Singapore can be a walk in the park for any new business owner. 

5 Most Profitable Businesses To Start In Singapore

If you’re a new entrepreneur, these are just some of the industries with so much potential for growth in the Lion City.

Automotive  

Many international automotive companies prefer Singapore either as a headquarters location or as their regional base for spares distribution, production, and R&D. Major original equipment manufacturers (OEMs) and Tier 1 automotive suppliers find Singapore’s exceptional physical and trade connectivity, solid financial infrastructure, and strong pool of supply chain professionals as great reasons for company incorporation in the Lion City.    

Natural resources

Those involved in agriculture, aquaculture, metals, and minerals will find Singapore a good location to start a business as it is strategically positioned right at the heart of Asia’s rich resources. The Singapore government continues to build on its resources and technologies to sustain the growth of this industry. With Asia being home to some of the world’s top commodity producers, Singapore is the perfect destination for entrepreneurs to establish their regional presence in order to take advantage of the country’s trading infrastructure and comprehensive network of international agreements.

Lifestyle-related products and services

Singapore is fast becoming a top location for anything trendy and sophisticated. Lifestyle businesses will surely benefit from an environment with diverse lifestyle needs which can be served with a myriad of trendy products and services.

If you’re into visual arts, sports, or performing arts, Singapore company incorporation can be an immediate success when you put up a business that caters to any of these niches. With the country’s cosmopolitan population that is constantly abreast with global trends, you will easily find success in this kind of business venture.    

Safety and security

Singapore takes pride in being one of the world’s safest cities, thanks to its continuous commitment to integrity, reliability, and the rule of law. The government capitalises on this reputation by continuously innovating on safety and security solutions. 

This is the best time for new entrepreneurs to invest in this kind of business as the safety and security market in Asia is expected to grow by 8%, which is attributed to the region’s rapid urbanisation. 

Robotics

Advanced robotics is within the plans of the Singaporean government to enhance and develop in order to enable efficiency in service delivery needs, such as healthcare. Those involved in this industry can be at the forefront of this development, especially now  that global robotics industry is expected to grow to US$80 billion by 2025.

Discover how your business acumen can complement these emerging industries in order to ensure a lucrative business operation. As a new business owner, you need to make sure that putting up a business in the Lion City will be as smooth sailing as you want it to be by getting all the help you can get to ensure a successful company incorporation.  

Simple and hassle-free Singapore company incorporation

Most new entrepreneurs in the Lion City partner with Singapore company formation services firms to help them put up their new business with ease and efficiency. Singapore company incorporation services are designed to help business owners navigate the strict business registration procedures of the Singaporean government the hassle-free way.

Whilst the government has made it simpler to register businesses in the Lion City, new companies are encouraged to hire company incorporation services in Singapore to ensure they comply with the government’s strict regulations. Partnering with a Singapore company incorporation services firm ensures that you timely adhere to all these regulations and don’t miss out on all the requirements needed to put up a legit business.

Singapore company formation services like Corporate Services Singapore are well-equipped to handle new entrepreneurs’ company formation needs with their highly qualified and trained specialists who are experts in quick yet efficient company registration. These professional services providers also offer a comprehensive portfolio of services and solutions to fit a company’s incorporation and compliance needs.

Check out one of these emerging businesses and see how a Singapore company incorporation services firm can help make your entrepreneurial vision come to life. After all, the best way to start a business is to ensure that you have put up a good foundation for a legitimate business operation.     

This Is Why Businesses Are Hiring A Company Secretarial Service

The company secretary position is one role that Singapore companies should give special attention to. It is more than just a job that you should fill in. The responsibilities that come with the position – one that entails efficiency and accuracy to details – are vital to the survival of your business. As there is so much at risk in the execution of such a role, no wonder more and more Singapore companies are opting to outsource the position to a reputable company secretarial service.

What Is A Company Secretary And Why Is It Essential To Your Company? 

The company secretary is a role that is mandated by law. Under Section 171, 1AA of the Singapore Companies Act, companies are required to fill in the position within six months of their incorporation. The urgency of appointment is tied to the weight of responsibility that the position holds.

First, the person appointed to the role is responsible for the company’s accurate and timely compliance with statutory requirements related to its business. The company secretary needs to make sure that the organisation strictly adheres to all legislations and regulations that govern its business. Being the compliance officer of the company, the company secretary ensures that the board members of the organisation know their duties and responsibilities under the law. 

Second, the company secretary, being the resource person of the company’s board members and employees, is responsible for the execution of vital business and operational duties in relation to the company’s administrative activities. These include, amongst others, setting the agenda for business meetings, overseeing share distribution transactions, preparing and keeping of minutes of meetings and board resolutions, and filing of annual returns and other compliance requirements with the Accounting and Corporate Regulatory Authority (ACRA). 

Third, as a legal and financial officer, the company secretary is expected to oversee all the financial and legal documents of the company, including account statements, transfers, acquisitions, and insurance covers, and making sure that such documents comply with the law.

Finally, the company secretary is given the authority to authenticate resolutions as well as execute official documents.

The gravity of the responsibilities that come with the company secretary position is so great that companies are encouraged to be meticulous when it comes to hiring someone for the role. Precision, attention to detail, and organisational skills are definite considerations when looking for someone that can take on the job description.

It is for this reason that most businesses today are engaging corporate secretary services firms to handle this delicate role. The knowledge and years of experience of such professional service providers are potential reasons why companies are choosing to outsource the company secretary position. However, there are more advantages to an outsourced secretary service than meets the eye.

Why Companies Are Engaging Company Secretarial Services

Hiring a professional company secretarial service provides more benefits than just meeting compliance requirements accurately and timely. Below are just a few of the advantages you can expect when you engage a company secretarial services firm that can make a positive impact in the way you operate your business.

1. Minimise operating cost

   Imagine the money you can save when you engage a corporate secretary services firm instead of hiring an in-house one. You don’t have to spend on monthly compensation, employee package, and training. You also don’t need to buy additional office equipment and you save on office space. On top of these, you don’t have to worry about any errors and oversights that can also cost your company dearly, as professional services firms ensure precision in the execution of their job. 

2. More efficient work

   Secretary service companies boast experts who have deep knowledge and skills of the duties and responsibilities that come with the job. This means administrative tasks are done with more efficiency and compliance requirements are met promptly and with more attention to detail. Productivity of your company is improved with the streamlined approach offered by these professional services providers.

3. Less risks

   As company secretarial services firms are adept in compliance requirements, risks associated with non-compliance are reduced. You are able to adhere to all relevant statutory rules and regulations that govern your business through prompt and correct filing of compliance requirements, which also eliminates the risk of facing penalties due to legal issues.

You can choose from a list of secretarial services that can offer you the best secretarial package that fits your organisation as well as the best secretarial services rates that conform to your budget. The benefits that these professional services providers offer allow your company to be more productive and efficient in the way you conduct your business.

Check ACRA for a list of secretarial services companies in Singapore so you can shortlist the ones that can offer you the best secretarial service solutions. Take note of the ones with secretarial services rates that can give more value for your money. The best professional services provider is, of course, the one that can offer not only both proven performance and reasonable rates but also expertise and experience that can help your business achieve its goals and targets.