According to the entire world, Singapore is one of the best places to start a business. But have you ever wondered why this is so? The Lion City may be small, but it has a lot to offer to both startups and experienced entrepreneurs. Just look at these:
- Ease of business incorporation
- Being one of the richest cities in the world
- Government support for business
- IT and infrastructure
- Political and economic stability
Today, we want to dive into the business incorporation process in Singapore and focus on the mistakes to avoid when going through this process. You may not realize now, but the cost will be very high should you make one or more of these mistakes.
According to experts, the business incorporation mistakes we will discuss below can ultimately be avoided by following the recommended procedure or making the right decisions. Sit back and read on as we take you through the most common mistakes and how to avoid them.
Poor Business Structure
Before you think about incorporating a business in Singapore, you must have an idea long before. You are required to prepare it well and strategize the structures. But should you fail to come up with an ideal business structure, it will fail terribly after launching.
This is where you prepare a business plan after a lot of research and consultation with business and financial experts. At this point, you also need to choose a suitable legal entity. Most businesses in Singapore are private limited companies. You too will be better choosing this entity although it will depend on the type of business you want to start.
Targeting the Wrong Market
Before incorporating a business, one is required to do a market survey and decide on the target market that they want. Otherwise, the incorporation process will be a waste of time because the business is likely to crash as soon as it is launched. One thing to remember is that customers are the blood of business, and without them, it cannot run.
While doing the research and consultation for business structure, entrepreneurs also need to do some good market research. There are many business market research firms in Singapore that can help you before making the mistake of choosing the wrong target market. It is better to change your business plan to suit the right market than make the wrong decisions.
Trying to Incorporate the Business by Yourself
There is a reason why there are many business incorporation agents in Singapore. Although the procedure is easy and straightforward, many things can go wrong if you try to do this online procedure by yourself. First of all, there is a high chance of sending the wrong documents, which may lead to the cancellation of the business application or hold the process up for too long before getting the certificate of incorporation.
The best solution is to seek the services of reputable business incorporation agents like Visa Express who have experience in the field. They offer guidance on the documents that must be prepared, and above all, they will do the online application for you. With experts, the chances of cancellation of the application or delayed approval are very low since they scrutinize the application documents and advise accordingly.
Choosing the Wrong Business Name
Most entrepreneurs get disappointed when their business name is not approved because of mistakes. Well, there are many reasons that could lead to this. First, the Accounting and Corporate Regulating Authority (ACRA) will reject a name when there is another business that is incorporated with a similar name. The other primary reason is when the entrepreneur tries to use prohibited names like those that use offensive language. Any other reason as guided will also lead to cancellation.
This mistake can be avoided if a person uses a professional agent to help in incorporation. They conduct a name search before the application to make sure that your preferred business name is not taken. They also book the name to ensure that no one else will take it during or after the incorporation.
Wrong Timing for Launch
Business incorporation happens at the right time when an entrepreneur has planned to launch the business. So, as soon as the process is complete, it should launch. However, most business people, especially beginners who have no experience, make a mistake here. They either launch too early or late, and neither is good for your novice business.
Therefore, it is highly recommended to have a business consultant by your side. If there is no money to hire one, Singapore has numerous startup mentorship and guidance programs. Take advantage of one to know the right time to launch and why it is important to do it at that time.
Spending Too Much Before Launching
The research, networking, and incorporation services that come before launching a business in Singapore have a cost. Although their budget should be prepared during the business plan preparation, this could go overboard if one is not careful. This is a big mistake one can make while incorporating a business in Singapore.
So, the best thing to do is stick to the budget to avoid using finances for other operations like recruiting, marketing, and paying for bills after launching. If the cost is increasing, compare prices offered by different experts and choose those who are offering low prices but valuable services.
Recruiting the Wrong Employees
One of the requirements for business incorporation in Singapore is to have a local secretary and director. These will be part of the staff, to begin with even if others do not come until later. You should hire qualified personnel even if the budget is tight to ensure that the business starts on the right foot. You can seek the services of professional recruiting firms if the budget allows.
Conclusion
By avoiding the above mistakes through the ways we have shared, you will have smooth incorporation and launch of your preferred business in Singapore. By now, you have seen that it is one of the easiest things to do.
