A six-step guide to get your business started

31 Jul 2023 | SME, Business Registration | 5 min read

One of the first things to do to get your business off the ground is to register with the Accounting and Corporate Regulatory Authority (ACRA). ACRA is the regulatory body and provider for business registration, financial reporting, public accounting and corporate services. Anyone who wishes to carry out an activity for profit on an ongoing basis legally in Singapore must register and adhere to the regulations set out by ACRA. 

An ACRA business registration provides you with:

• Legitimacy: Enabling members of the public to search and verify information about your business and its owners.
• Visibility: Making it easier for customers to identify, find and transact with you.
• Opportunities: Apply for government tenders and secure intellectual property or patents for new products and technology.
• Access: Giving your business access to governmental funding.

Follow the six simple steps below to get your business ready to serve your first customers in Singapore. 

It goes without saying that having a company name is the first step. However, it is crucial to note the following when choosing a name:

• It must not be the same as an existing company name
• It must not contain any prohibited word, for example Temasek has been prohibited. Other restricted words including “finance”, “law”, “media”,  “school” and “bank” require approval from the government ministries involved.
• It cannot contain any vulgar, obscene or offensive words.

Once you have a name, you will need to submit the name application via ACRA’s online business registration and filing portal BizFile. Together with your application, you will need to select the most relevant SSIC code that best describes your business activities. After your company name is approved, the name will be reserved for 120 days.

From the onset, you will have to determine the type of business structure that best suits your needs. The most common structures found in Singapore are sole proprietorship, partnership and company. Each type has its pros and cons. To help you decide, here are some considerations:

• Nature of business and its needs, for example, data and information, processes, customer experience, products and services, marketing strategies
• Number of owners
• Amount of capital needed
• Types of risks involved
• Long-term business plan

The two most important roles when starting a company are the company director(s) and a secretary. All companies must appoint at least one director and a secretary, including sole proprietorship. If you are the sole-proprietor, you will need to appoint another person (external party) as the secretary.

Simply put, a company director is responsible for managing the company and setting its strategic direction. This is required under the Companies Act to ensure accurate and timely record keeping, preparation of financial statements (if any) and compliance with corporate filings and other disclosures.

A company secretary is responsible for the administration of the company, with a job scope that includes:

• Maintaining and updating the company’s registers and minutes books
• Administering, attending, and preparing minutes of meetings of directors and shareholders
• Keeping company directors aware of the deadlines for annual returns and any other filings required by ACRA
• Updating directors and shareholders on relevant changes in corporate regulations

Your company must appoint a secretary within six months from the date of incorporation. The secretary position cannot be left vacant for more than six months or the directors may face a fine.

Along with the application for company incorporation, an office address, where all communications and notices will be sent to and where registers and records are kept, must be provided.

Do bear in mind:

• The registered office has to be open and accessible to the public for at least three hours during ordinary business hours on each business day. This is to allow members of the public to reach out to the office if necessary and to facilitate the delivery of any legal documents.
• The address must be in Singapore, but it need not be the place of operation. For example, your company’s registered office address may be in Tanjong Pagar but your factory could be located in Woodlands.

Of course, you may plan to start your business from your home. For such cases, you may use your residential address as the office address under the Home Office Scheme managed by the Housing Development Board (for HDB flats) and Urban Redevelopment Authority (for private residential properties).

You must apply for approval under the Home Office Scheme before submitting your application to incorporate your company.

If you need to transact with Singapore government agencies online, then you will need to set up a corporate digital identity with Corppass. Each business entity can have two designated admins nominated on the Corppass website. 

Opening a corporate bank account is essential, especially when it comes to tracking business cashflows, income and expenses for the purpose of income tax filing.

Do take note of these requirements from most banks in Singapore:

• Account signatories and majority directors must be physically present in Singapore to sign the paperwork at the time of opening the account.
• The following supporting documents are needed: Corporate Account Opening Form, Board of Directors Resolution, Certified True Copy of Resolution, Certified True Copy of Certificate of Incorporation, Certified True Copy of Company’s Profile from ACRA, Certified True Copy of Company’s Constitution, Certified True Copy of Passport or Singapore IC and Proof of Residential Address of Owners.

Completing these six steps is just the beginning of your entrepreneurial journey. To help you on the next part of the journey, Singtel offers exclusive discounts for all your telecommunications needs, be it broadband, mobile, telephony, conferencing and cybersecurity.