Top Company Incorporation Myths in Singapore
If this isn’t your first time reading our blogs, or if you’ve been doing your homework on starting a business in Singapore, we’re pretty sure that you now have a complete and thorough understanding on why it’s amazingly easy to do business in The Lion City. With the Singaporean government continuously setting and developing initiatives that make company registration fast, simple, and straightforward, it truly isn’t surprising why thousands of foreign investors seek to fulfill their business goals and aspirations in Asia’s FInancial Hub.
But even with the ease of company registration and all the perks that come with opening a business in Singapore, at the end of the day, the fact still remains that building your own company is never an easy feat, let alone starting from scratch in a foreign land. Apart from all the business decisions and plans you would have to make, you will also have to consider your personal life as well. In other words, should you be really determined to build your dream empire in Singapore, you would have to make sure that you are 100% prepared to face all the risks, challenges, and surprises that come with it.
Having said that, there’s no denying that the experts here at Enterprise Assurance PAC are eager to help you fulfill your business goals here in Singapore. As we ultimately want to become your partners, let us start by guiding you towards the right path. We want to make sure that all the things you currently know and believe about starting a business in Singapore are but facts, nothing else. You wouldn’t want to go rushing to jump off a cliff with false hopes and beliefs, right?
Let us share with you the most common misconceptions about incorporating a business in Singapore. Make sure to read all the way through to avoid falling into these myths:
MYTH 1: Tax Exemption or Reduction is the ONLY reward you’ll get from incorporating a company in Singapore
We won’t deny that the corporate tax reductions and other tax exemptions Singapore provide are among the top and most common reasons why foreign investors want to set up their company here. However, it would be detrimental for you in the future if this is your ONLY basis for building your company in Singapore. Because should that be the case, you’ll end up making poor business decisions while starting up and even as you run your company. If all you prioritize are your taxes, you may fail to recognize the other important aspects of running and offshore business. So instead of doing that, what we recommend for you to do is start off by setting your sights on all the opportunities and benefits that await you should you continue fulfilling your business goals in Singapore. You’ll soon realize that if you look forward and take advantage of everything that Singapore has for you, you’ll be able to plan and strategize later on.
MYTH 2: Hiring a company secretary is only needed for company registration purposes
Yes, hiring a Singapore resident company secretary is one of the requirements for company incorporation. But haven’t you realized yet that maybe the Singapore government has a strong reason why this rule is in place? Because the truth is, the company secretary is totally different from the clerk or assistant you have in mind. It’s detrimental to believe that after successfully incorporating your company, you can already get rid of your company secretary. He or she is actually a valuable asset to the company you’re building. He/she is endowed with great responsibilities including making sure the company is compliant to Singapore laws, processes, and requirements.
That is also why the Singapore government gives you 6 months to find the perfect company secretary. You wouldn’t want to make the mistake of just hiring any Singapore resident who’s willing to work for you. Because of the roles, duties, and responsibilities the position entails, make sure to hire one that you can work with for a long time - one that is with you in fulfilling your business goals in Singapore.
MYTH 3: Incorporating after product/service launch won’t hurt your business
Most entrepreneurs and startups sadly fall into this trap, believing that it won’t harm them in anyway. The reality is, most budding entrepreneurs and first-time business owners go ahead and launch their products/services into the Singaporean market, and then start the incorporation process after they have proven that their business will be successful here. They typically do that to avoid fees and paperwork. As there is absolutely nothing wrong with testing the market, you should be doing that during the stages of your feasibility study.
However, what they don’t realize is that by incorporating your company at an earlier time, no matter how small it is, you will be able to protect your assets more. As a matter of fact, early incorporation gives you the benefit of obtaining more long-term capital for your business. In addition, we have to stress that it’ll be healthier for you to accept responsibilities earlier than later. In that way, after you’re done with the whole process of incorporation, you’d be in a more stable place and you will be able to focus on making your products/services successful.
MYTH 4: You need lots of investors before you can successfully incorporate and launch your business in Singapore
Startup capital is of course one of the most important things when starting a company anywhere in the world. However, if this myth is the one holding you back from fulfilling your business goals in Singapore, then it is time for you to doubt this belief. We’re assuming that before actually planning to open a business in Singapore, you already have some saved-up funds for it. So in reality, what we want you to know is that a big number of investors is really not a requirement when you incorporate your business in Singapore. Getting a bank loan or bringing in all the investors you know is never a prerequisite. Basically, all you have to do is prove to the Singapore government that you have enough capital to start your trade.
It sure is a good thing if banks are willing to loan you money and if you do know a lot of investors who are willing to fund your business. But believe us when we say that, as much as possible, save all those for later. It is always wise to never put all your cards in the table, especially for the first game. So that in case challenges come along the way, and you’ll be needing additional funds, you won’t go crazy looking for people or institutions who are willing to invest in your business. Don’t be too anxious or worried.
MYTH 5: You can do all the Singapore company incorporation steps by yourself.
Many foreign investors and entrepreneurs also commit the mistake of thinking that taking care of the Singapore company incorporation process by themselves will save them money. Yes, at first sight, it will cost you some amount of money to hire these specialized professionals. However, what they don’t realize is that without proper knowledge and experience on everything about forming a company in Singapore, they are more prone to making mistakes along the way, and thereby experiencing more complicated difficulties later on. Sadly, those who have fallen prey to this myth ended up incurring doubled or tripled expenses that they weren’t really prepared to make. Fighting obstacles, correcting mistakes, and redoing the process all over again are just the things you don’t want to do while building your enterprise in Singapore.
And most of all, without the help of these experts, you’ll definitely lose out on the valuable advice and quality insights on company incorporation and doing business in Singapore, which you can definitely make use of while running your trade and fulfilling your goals. Choose only those who will to everything to help you and make sure that you never fall for the common misconceptions and myths. Look no further than Enterprise Assurance PAC. Apart from providing you a faster and a more convenient way to start and form your company in Singapore, we’ll also assure you that we only go through this the proper way. Call us now!