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Writer's pictureAmanda Dyer

Incorporating A Business In Singapore - A Step-by-Step Guide For Mompreneurs

Updated: May 20, 2019



Are you a stay-at-home mom? Are you hoping to kick start an entrepreneurial dream? Do you want to be your own boss? Mothering a child and owning a start-up are not as different as you might think.

Are you a stay-at-home mom? Are you hoping to kick start an entrepreneurial dream? Do you want to be your own boss? Mothering a child and owning a start-up are not as different as you might think.


According to CNN money, French bank BNP Paribas and consultancy firm Scorpio Partnership in November 2014 surveyed more than 2,500 entrepreneurs from the U.S., Europe, Asia and the Middle East. The survey found that the average female entrepreneur launches 4.9 companies while men launch 4.3.


Think about that statistic for a minute!


Undeniably, Singapore is a pro-family country. The city-state also remains pro-business and continues to welcome foreign talent to its shores. The Ministry of Manpower (MOM) allows professionals holding a valid work visa (Employment Pass, Personalized Employment Pass, EntrePass, or S Pass) to relocate their immediate family members (i.e. their children and/or spouse) to Singapore by applying for a Dependant’s Pass (DP). Each Dependant’s Pass application is assessed on its own merit and is subject to approval.


World’s Easiest Place to Do Business

In Singapore, the world’s easiest place to do business, it takes an entrepreneur just a few hours to incorporate a company. The overall process can take anywhere from one day to a few days.


All businesses in Singapore are registered with the Accounting & Corporate Regulatory Authority (ACRA).


When setting up a business in Singapore, there are mainly two types of entities to choose from, namely: sole-proprietorship, and a private limited company in Singapore. The second one remains the most popular option as it is the most advanced and flexible business entity.


Sole Proprietorship

This is the simplest form of business entity that is owned by one person and is easy to set up. The disadvantage is that the owner is fully liable for all risks, losses or debts incurred by the business.


Private Limited Company

One of the major advantage of Private Limited companies is that shareholders have limited liabilities. A Private Limited company has its own legal identity separate from its shareholders and directors.


To set up a company, you must have a minimum of 1 shareholder, 1 local resident director and 1 company secretary, plus a paid-up capital of $1.

Some business owners start off as sole proprietors, and then later convert to a private limited company when their business expands.


A private limited company will need to comply with Singapore’s annual statutory filing requirements.


Letter of Consent

Once you have set up your business, you will then need to apply for a Letter of Consent (LOC). The LOC is necessary for a DP holder to work legally in Singapore. When setting up a sole proprietorship or incorporating a company, the DP holder will also need a Letter of Consent in order to operate his/her company.

It is important to note, however, that not all LOC applications are approved. This remains at the sole discretion of the MOM, and all applications are assesses on a case-to-case basis.Employment Pass


To qualify for an EP, you will need to fulfil certain educational and professional qualifications. Relevant skills, educational achievement, and professional background are evaluated in the EP application.


Moving Forward

Just a million-dollar idea is not enough to incorporate a start-up. You need some basic knowledge of the process, plus a reliable company registration specialist like Rikvin who will be there to guide you along the way.

For further reading on setting up a Sole proprietorship or a Private Limited company as a Dependant’s Pass holder in Singapore, Rikvin has compiled the most relevant information to get you started and realize your dream.


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1 Kommentar


emkennettt
20. Okt. 2019

Thanks for the information. You are right, Singapore created so that people could do business as soon as they want.

It seems that the first important step that needs to be taken is to carefully calculate and plan everything, structure all the information and organize your knowledge. In addition, when planning, you can clarify the real goals and understand the real tasks. For example, you can start by comparing Singapore’s tax rates to your home state’s. You can see here, for example, for the UK. https://osome.com/sg/blog/what-taxes-uk-entrepreneurs-pay-in-singapore/ There are also detailed articles for many other countries. As soon as everything is done, you decide on the industry and (understand how many reasons to do business in Singapore), the whole process will…

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