Setting up a company in Singapore is an exciting step for entrepreneurs, as it can open up a world of opportunities and offer access to one of the world’s most dynamic and thriving economies. However, setting up a company in Singapore also comes with its own challenges, and making mistakes at the formation stage can have serious consequences.
Whether you are an experienced entrepreneur or just starting, this article will provide valuable information to help you avoid common pitfalls and make setting up a company in Singapore easier.
Top Five Mistakes to Avoid
Setting up a company in Singapore can be a complex and challenging process. However, avoiding these common mistakes can ensure a smooth and successful business in the country.
1. Lack of Proper Planning
It’s essential to remember that setting up a company in Singapore involves much more than just a good business idea. When setting up a company in Singapore, it is crucial to consider your business’s long-term goals and plan to achieve them. Entrepreneurs who fail to consider their company’s long-term goals are setting themselves up for potential failure.
It’s essential to have a well-thought-out business plan that outlines objectives, strategies, and financial projections to prevent failure. A business plan serves as a roadmap, guiding efforts, allocating resources, and tracking progress. Entrepreneurs should invest time and resources in conducting market research and preparing a comprehensive business plan.
Get up to speed on what you need to know before starting your new company in Singapore by reading our guide.
2. Underestimating the Start-Up Costs
Setting up a company in Singapore requires a lot of resources, both financial and otherwise. Starting and operating a business in the country involves a wide range of costs, from legal fees and licensing to business expenses and staffing costs.
To avoid this mistake, entrepreneurs should prepare a comprehensive budget plan that considers all costs associated with starting a business and should be realistic about the expenses they will incur. A detailed budget plan will help ensure the company has the financial resources to succeed in the long term.
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3. Neglecting Legal Requirements
One of the most common mistakes entrepreneurs make when setting up a new company in Singapore is an inadequate understanding of the company registration process. This issue may result in mistakes during registration, leading to delays and additional costs.
It is essential to take legal requirements seriously when setting up a company in Singapore. Entrepreneurs should consider acquiring the assistance of an incorporation specialist to ensure that they comply with all legal requirements and that the company registration process goes smoothly. With proper support, first-time business owners can ensure their company is legally compliant.
4. Failing to Choose the Right Business Structure
Your chosen business structure can impact operations, legal requirements, and financial position. Picking the wrong business structure can result in various problems — including tax issues. In addition to tax implications, a poor business structure choice can lead to difficulties in raising capital, limited liability protection, and regulatory compliance. It is crucial to carefully evaluate each business structure’s benefits and drawbacks and choose the one that best fits the specific needs and circumstances of the business.
We’ve written a short overview of the business structures in Singapore to help you learn more about them.
5. Rushing to Hire Employees
When setting up a company in Singapore, it is important to take some time to consider the people you hire to help you run the business. The people you hire will significantly impact how well it does. Good employees can help your business succeed, while wrong employees will hold you back. So, it’s essential to find people with the right skills, values, and a strong work ethic to help your business grow and succeed.
Need help figuring out where to start? Check out our tips on hiring the right people for your business.
Unlock the secrets of small business accounting for financial success. Gain expert insights to stay organised and manage your company finances effectively.
Launching your business
Don’t let the stress of setting up a company in Singapore hold you back. Start your business off on the right path by availing of our Launch with Lanturn Programme! Our team of incorporation experts has a proven track record of successfully helping over 400 companies in Singapore with their business registration needs.
In availing of our cost-effective program, you get to enjoy the following:
- Seamless incorporation at an affordable cost.
- Hassle-free preparation and maintenance of company registers.
- You get to use a premium registered business address for an entire year.
- One year of expert corporate secretary services from Lanturn.