Key Singapore Business Incorporation Mistakes To Avoid
It is no secret that Singapore is one of the best locations on the planet to set up a business. From ease of company incorporation, the rich economy, the IT and infrastructure and the government support, it is easy to see why the country is so popular. However, just because the country is so popular, it does mean that anyone can simply set up a business. In many cases, company incorporation services in Singapore may be required to ensure that the process goes as smoothly as possible. To help you through this process, we have created a list of key mistakes you should avoid when it comes to business incorporation.
A Confusing Business Structure
Before starting a business in Singapore, you should have an understanding of the type of model you want to follow. The more preparation you put into your structure, the better. However, should you fail to come up with one, your business structure can quickly become very confusing. To come up with your business structure, it is best that you talk to a company that offers incorporation services in Singapore. At the same time, you may also choose a suitable legal entity. Most companies in Singapore are private limited companies, though this will depend on the type of business you’re operating.
Targeting The Wrong Audience
Before you begin the process of Singapore business incorporation, you must conduct in-depth research into your target audience. This will help you to determine the needs of the market as well as the demand for the service you have to offer. Should you fail to do this before you incorporate your business, you may waste a significant amount of time and money. There are many types of market research you can do yourself, as well as market research firms in Singapore who can help you with this process. This data will help you to create an in-depth business plan before entering the market.
Incorporating Your Business Without Support
There is a reason why company incorporation services in Singapore are so popular. Although the process itself may appear relatively straightforward, there are many things that can quickly go very wrong. For example, it’s very easy to send off the incorrect documents. Though this may appear to be a minor error, it could result in the cancellation of your business application or delay the process for a significant period of time. During the process of Singapore business incorporation, you should look for the help and support of a professional. A professional will help you to get your papers in order as well as provide you with guidance to speed up the process. When working with an expert, the chances of a cancellation are significantly reduced as they will have an in-depth understanding of the application process.
Choosing The Wrong Business Name
Another process that may appear relatively easy is choosing the right name for your business. However, this process is often more difficult than one would first think. For example, the Accounting and Corporate Regulating Authority (ACRA) will reject any business names that are already taken (or are similar to) another in Singapore. On top of this, any name that may be deemed offensive will also not be accepted. When using company incorporation services in Singapore you can easily avoid such mistakes as they will conduct a name search for you. This will provide you with alternative business names should your one already be taken. They can also book your name for you so that it cannot be taking during the incorporation process.
Launching At The Wrong Time
One of the most common mistakes made by entrepreneurs in Singapore is launching the business too early or too late. This could be a result of several factors, including a lack of research, a lack of understanding regarding the local market or a lack of professional advice. This is where a business consultant can enhance the process of launching. Should you not have the funds to hire a professional, Singapore has several startup mentorship and guidance programs available for new businesses. Take advantage of these to ensure your business is launched at the right time.
Overspending On Advertising
The startup process in Singapore can be somewhat expensive at first. As a result, you may have to reduce your budget for the first year in certain areas. One such area is advertising. Many new businesses will spend the majority of their budget on advertising in their first year, leaving them with no backup funds should something go wrong. Not only is this a big mistake, but it can put the business into debt before it has even started.
Recruiting The Wrong Individuals
During the process of Singapore business incorporation you will need to have a local secretary and a director for your business. These are a legal requirement and will be part of your team from the very onset. Even if you have a low budget, you should always look for the highest skilled individuals as this will provide you with a strong foundation to work from. To find the right individuals, you may consider looking for a recruitment firm that will provide you with the support you need, especially if you have no local connections. This is extremely important and both individuals must be recruited by the end of your first 6 months of business.