Why is Singapore one of the Best Global Cities to do Business?

Why is Singapore one of the best global cities to do business?

Firstly, Singapore has a promising jurisdiction for registering a company and addressing business management.  In the world rankings of doing business, Singapore has a leading role for many years.

Secondly, there is virtually no corruption in Singapore, there is no external state debt, and the trade balance is positive on a constant basis. Singapore is one of the international financial centres with developed economy based on trade and sector service.

Thirdly, Singapore is in the white list of countries that are favourable for companies to do business. And first of all it is due to high reputation of the jurisdiction, as well as taking into account the highly favourable tax regime and a developed system of protecting the interests of businesses and investors. Such conditions allow to easily register a company in Singapore and to do business in favourable atmosphere.

According to a study conducted by CNN Time Warner Group, Singapore is ranked 5th in the world in terms of friendliness to small businesses. Ahead of it are only New Zealand, the USA, Canada and Australia. The study took into account such factors as the time to form a Singapore company, laws, tax policies and the different types of business activity etc.

Having own business in Singapore is a dream of every entrepreneur.  Registering a company or business in Singapore takes about 1 to 2 days, and the further conduct of business is not complicated by unnecessary bureaucratic delays. With so many benefits, it is no wonder that Singapore is among the best global cities to do business.

Setting up a Company

If you already have the idea of a business, it’s time to move to action. The minimum share capital is a nominal $1, the minimum number of shareholders is one, and the license for most businesses is not required. Foreigners can own 100% of the shares. In fact, the only legal requirement is that the director of the company must be a resident of Singapore.

But there is an option when a foreign businessman receives a work visa either Entrepreneur pass or Employment pass. In this case you can do your business even without the Singaporean director. Application for a work visa is processed by the Singapore Ministry of Manpower and if you have a higher education such as Bachelor’s Degree with business experience, no problems should arise in the work visa application.

In order to start your own business, the easiest way to do that is to apply to one of many consulting or law firms in Singapore. There you will be not only explained in detail all the conditions for the establishment and running your own business in the country, but the company secretary will help you to arrange the Singapore company registration in just a few days.

How to Set Up a Restaurant Business in Singapore?

With Singaporeans’ huge appetite for eating out and their willingness to spend big bucks on food, it has given rise to a variety of food and beverage (F&B) businesses in Singapore. Once you have decided that Singapore is the ideal place to setup your restaurant, the following steps will provide you the necessary information to kick start your restaurant business. The first step in opening a restaurant business is to register a company in Singapore. For foreign owners, it is not compulsory for them to relocate to Singapore to set up their business. However, under the Singapore Immigration Regulations, if a foreigner wishes to move to Singapore to run his restaurant, he must apply for an Entrepass.

Step 1: Incorporate a Company / Business in Singapore

First of all, you need to register a business or company in Singapore. A Singaporean or Permanent Resident can register the business or company alone as a single director company. SSIC code of the company should reflect the actual types of food business such as cafes, snack bars, fast food restaurants and restaurants etc.

Step 2: Food Shop License

According to Singapore’s Environmental Public Health Act, a Food Shop Licence issued by the National Environment Agency (NEA), is necessary if a person is intended to run a retail food outlet where food and/or drink are sold wholly by retail in Singapore.

Hence, after you have finished your company registration and any relocation visa matters, you will have to decide on your restaurant’s location since the authorities will examine the location before granting an approval for the license.

In addition, when applying for the Food Shop License, you must have the following supporting documents listed below:

• A photocopy of one of the following (where applicable):
  • Both sides of NRIC of applicant (if applying as an individual) or
  • Business profile of the company (if applying as a company) or
  • Certificate of registration from Registrar of Societies (if applying as a society)
• A scaled metric layout plan of the restaurant such as the kitchen, preparation area, refreshment area, toilets, stores and etc.
• Tenancy agreement among the landlord and the applicant.
• Approval(s) from Housing Development Board (HDB) [for HDB premises only], Urban Redevelopment Authority (URA) & / or Building and Construction Authority (BCA) [where applicable]
• The list of food handlers employed.
• Typhoid inoculation certificates for food handlers.
• X-ray certificates for food handlers that are 45 years old and above.
• The list of Food Hygiene Officers hired using the prescribed form obtainable from the relevant Regional Office.

Step 3: Hiring of Employees

Owners have to be aware that employees in the restaurant business in Singapore tend to consist of both local and foreign workers. Thus, if you are planning to hire foreign employees, you have to ensure that they have a work permit.

Step 4: Halal Establishment Scheme

If you are also planning to have Muslims as customers, it is vital to have a Halal certificate by the Islamic Religious Council of Singapore (MUIS) – the authority for Halal certification in Singapore. With this certificate, Muslims can enjoy their meal without having to worry if they violated their laws and beliefs.

Step 5: Liquor Licence

If you desire to serve liquor in your restaurant, you would require a Liquor License from the Liquor Licensing Board (LLB).

There are 4 main types of Liquor licence:

• Public house licence
• Beer house licence
• Wholesale liquor/Retail liquor shop licence
• Wholesale beer/Retail beer licence

Depending on the type of license, the fee range from S$220 to S$1760 for a period of two years. The processing time for approval of application will take at least 14 working days.

Step 6: Goods and Services Tax (GST) Registration

Any business that has annual revenue of S$1million or more must register for GST, also known as value added tax (VAT). Currently, Singapore’s GST is 7%. However, if your annual restaurant revenue is less than S$1 million, registering for GST is optional.

Step 7: CPF Registration

You need to make Central Provident Fund (CPF) contributions for any employee you hire, as long as he or she receives more than S$50 a month. However, CPF contribution for foreign employees with Employment Pass or Work Permit is not required.

Step 8: Registration to import processed Food products and Appliances

If you intend to import processed food products and food appliances, you have to apply for a Registration Number from the Food Control Division (FCD) of Agri-Food & Veterinary Authority of Singapore (AVA).

After going through the 8 steps above, you are now better equipped with the knowledge to set up your restaurant business in Singapore.

How to Set Up a Travel Agency in Singapore?

Prior to starting a Travel Agency in Singapore, one must register a company. A Travel Agency is a person or a company that provides services relating to travelling and tour. A Travel Agent is a body which provides travel and tour packages involving different modes of transport.

Under Section 4 of the Travel Agent’s Act (Cap 334), a travel agent is defined by the services it offers. Some services include:

1. The purchasing of the requirement needed to get on any transportation for resale, conducting tours within Singapore
2. The sale of tickets allowing one to travel or organise a right of passage on any form of transportation for an individual. However, the licence is not required if the transportation is owned by the company.
3. The assistance of an individual to travel by selling or organising transport payment tickets, hotel lodging and foreign visas to destinations outside and within Singapore. Similarly, a licence is not required if the lodging and conveyance is owned by the company.
4. Individuals are also deemed as a travel agent if they carry out activities that are set by the Board. These includes companies such as providing travel services, excursions, sightseeing, tours, tourist services and ticketing agents for airlines, tour buses and cruise ships.

The person or company would need to have a travel agent licence in order to run an agency. The licence will be issued by Singapore Tourism Board (STB), a government entity. Before the licence can be sent for approval, the company must have the following obligations:

1. The company must be set up in Singapore and have the purpose of doing business as a travel agency. The company must be registered under the Standard Industrial Classification (SSIC) codes of 78211 for Travel Agents And Tour Operators, or 78212 for Ticketing Agencies.
2. Cash flow and good liquidity and solvency of the company is very important. Thus, the paid-up capital that is used to set up the company must be at least S$10,000.
3. Employees must be a Singapore citizen, permanent resident, or employment pass holder and must also be accepted by STB.
4. Fourth, running a business requires the management team and executives to be of good moral character and reputation. Evidence of conduct such as letters of decent demeanour, police clearance and credit background checks may be used by STB for inspection.
5. Fifth, having a website allows the company to communicate with the customers through IT. Also, the company would need to examine the “Terms and Conditions for the Use of the Travel Related Users’ System (TRUST)”. It is a website providing travel industry information and advice.
6. Business office space and signboard must be set up if you are setting up a company that is for travel agency operations. The signboard must be concise on the services you provide. For self-employed agents, approval from Housing Development Board must be obtained before STB issues the license.

Applying for licence:

The documents needed for a license are as follows:

• Latest ACRA Biz file of the company
• Business Activities & Market Specialization Form
• Resume and Testimonial of the Key Executive
• Front & Back copy of the Key Executive’s NRIC
• Key Executive’s Declaration Form
• Letter of appointment & Director Resolution on the appointment of the Key Executive, printed on company’s letter head and signed by all directors with a valid company stamp.
• Confirmation of Company’s Business Particulars Form
• Tenancy agreement & Certificate of Stamp Duty of the premises. Ensure that the copy shows the address that has been approved and to be used as office.

Also, Sole-proprietors/partnerships are also required to submit the Credit Bureau Singapore report for the sole-proprietor/partners.

All documents are to be submitted to STB for approval. The application of the travel agent license would take about one to two weeks to process depending on the amount of completed supporting documents.

1. Supporting documents are stamped copy of the rental contract of the location(s). The agreement should not be less than one year.
2. If you are applying online at enterpriseone.gov.sg, you must declare whether you are a shareholder in other travel agencies.

The license costs $300 and expires the following year which it is issued, on 31^st December. After that, the travel agency is required to renew their licence.

Looking for Free Business Advice for SMEs?

Are you looking for free business advice for SMEs, an aspiring Entrepreneur and new to Singapore company formation? Free business advice is now available for Small and Medium-sized Enterprises (SMEs) at Central Development Councils (CDCs) across Singapore. The advice ranges from the availability of government schemes to knowing the ropes for overseas business expansion.

To be managed by consultants from the various trade associations with funding from Spring Singapore, these centres were the result of an agreement to set up SME centres within the five CDCs by five local trade associations, with the objective of offering advice for SMEs.

These five trade associations include:

• Association of Small and Medium Enterprises (ASME)
• the Singapore Chinese Chamber of Commerce and Industry (SCCCI)
• the Singapore Indian Chamber of Commerce and Industry (SICC)
• the Singapore Malay Chamber of Commerce and Industry (SMCCI)
  
• the Singapore Manufacturing Federation (SMF)

Termed a ‘satellite centre’, the first such centre launched in 2012 at the Northeast CDC in Tampines with the aim of giving business advice for SMEs. The SME help centre, run by consultants of the ASME, managed to benefit about 1000 SMEs. Leveraging on the success of the first centre, a second centre was launched in July 2013 at Southwest CDC in Jurong East and it will be managed by consultants from the Singapore Manufacturing Federation (SMF).

Complementing the SME help centres already available at various different locations over Singapore, the scheme has given business advice for more than 70,000 SMEs. This is since the launch of the programme in 2005. Spring Singapore anticipates that the collaboration of these satellite centres and the participating trade associations’ help centre can assist another 60,000 businesses in the following three years.

If you are keen to contact a business advisor from an SME-help centre, or simply wish to know more information about the five trade associations and the SME help-centres under them, click here.

Looking for Free Business Advice for SMEs?

Are you looking for free business advice for SMEs, an aspiring Entrepreneur and new to Singapore company formation? Free business advice is now available for Small and Medium-sized Enterprises (SMEs) at Central Development Councils (CDCs) across Singapore. The advice ranges from the availability of government schemes to knowing the ropes for overseas business expansion.

To be managed by consultants from the various trade associations with funding from Spring Singapore, these centres were the result of an agreement to set up SME centres within the five CDCs by five local trade associations, with the objective of offering advice for SMEs.

These five trade associations include:

• Association of Small and Medium Enterprises (ASME)
• the Singapore Chinese Chamber of Commerce and Industry (SCCCI)
• the Singapore Indian Chamber of Commerce and Industry (SICC)
• the Singapore Malay Chamber of Commerce and Industry (SMCCI)
  
• the Singapore Manufacturing Federation (SMF)

Termed a ‘satellite centre’, the first such centre launched in 2012 at the Northeast CDC in Tampines with the aim of giving business advice for SMEs. The SME help centre, run by consultants of the ASME, managed to benefit about 1000 SMEs. Leveraging on the success of the first centre, a second centre was launched in July 2013 at Southwest CDC in Jurong East and it will be managed by consultants from the Singapore Manufacturing Federation (SMF).

Complementing the SME help centres already available at various different locations over Singapore, the scheme has given business advice for more than 70,000 SMEs. This is since the launch of the programme in 2005. Spring Singapore anticipates that the collaboration of these satellite centres and the participating trade associations’ help centre can assist another 60,000 businesses in the following three years.

If you are keen to contact a business advisor from an SME-help centre, or simply wish to know more information about the five trade associations and the SME help-centres under them, click here.