Managing a Business in Singapore
There are various aspects to the art of business management in Singapore. And you, as an owner, must know and master them all. In order to own a streamlined business, open a corporate bank account, secure office premises, appoint employees, and apply and acquire trademarks and business licenses before starting your activities.
Critical Steps for Successful Business Management in Singapore
Open a Corporate Bank Account in Singapore
Experts advise newbie owners to set up a company in Singapore and, secondly, to open a corporate bank account in a Singapore bank promptly. It helps them separate their company and personal finances, leading to effective business management in Singapore.
There are plenty of local and foreign banks in Singapore: Citibank, Maybank, Development Bank of Singapore, United Overseas Bank, Standard Chartered, Etc. Depending on your choice, you may have to pay charges to open your corporate bank account. You also need to submit the required KYC details to do so successfully.
In addition, the corporate account and company directors may have to be physically present to sign the paperwork. To open a corporate bank account, you will need to submit documents including:
- Certificate of Incorporation
- Director’s resolution to open a corporate bank account
- Business profile of the company
- Copy of passport or Singapore ID
- Proof of residence for directors
- Details of the ultimate beneficiary
Hunting for Office Premises in Singapore
You will need access to office space to conduct your business activities. Depending on your business needs and plans, you can opt for a:
Traditionally renting an Office
You may rent a suitable office space at a convenient location in Singapore. Your rent agreement with the landlord may run from 2-6 years with an option to renew it. You must follow your landlord’s terms and conditions to renovate the office space. In this case, you may ask for a rent-free period to renovate the office.
Renting a Serviced Office
You may also rent a serviced office or a space in a business centre for a short term. Rent includes base rent, office furniture, utilities, and security. There are additional costs for add-on services.
These are ready-to-use offices and help you start business activities without delay. Most importantly, these are located in the Central Business District of Singapore. Here, you get professionally managed amenities like reception, utility spaces, meeting rooms, and advanced IT resources.
Opting for a Home Office
You can save on office rent by opting for the Home Office Scheme. If you are a homeowner or tenant, you can use your HDB flat or private residence to carry out permitted business activities on a small scale. You will need proper authorisation from the Housing & Development Board (HDB) or Urban Redevelopment Authority (URA) to start a home office.
Get a Virtual Office
With a virtual office, you get access to a professional address and administrative services without paying for a physical office. In fact, you can use the address to set up company in Singapore. Virtual office is a great option over a traditional office to locate your startup or a small business. Remote or foreign companies use a virtual office to show their presence in Singapore.
Hiring Employees for Your Singapore Business
As your business grows, you will need to hire employees to manage increased business activities. Depending on your needs, you can employ local or foreign talent to improve business management in Singapore. Comply with the Employment Act. The contract of employment between you will dictate your relationship with them.
The Employment Act of Singapore
All labour and employment issues in Singapore are governed by the Employment Act. It is very specific about the basic terms and conditions of employment. It also states the rights, duties, and responsibilities of employees and employers in Singapore.
This act covers local and foreign employees. However, it does not cover the Domestic workers, Seafarers, Statutory board employees or Civil Servants.
Employment Contract
When you hire an employee covered by the Employment Act, the employment contract must do what the act says. If they are not covered by the act, you can negotiate the terms and conditions with the employees. Then you must prepare a written employment contract binding on both of you.
These contracts give appointment positions, employment duration, work hours, remuneration, Etc. Violation of any term in the contract is a serious matter. It is considered as a breach of contract.
Employing Singaporeans and Permanent Residents
In Singapore, you do not have to pay any CPF contribution for your foreign employees. However, you have to pay the Central Provident Fund (CPF) for each of your Singaporean and Permanent Resident employees each month.
While calculating the company’s and employees’ CPF contributions, you have to do so according to their age and residency status. You must deposit both these shares into your company’s CPF account by the 14th of next month. Then, you deduct the employees’ CPF share from their salary.
Hiring Foreigners
Foreigners need a suitable work pass or visa to work in Singapore. After selecting them, your company secretary will need to apply to the Ministry of Manpower and get the right pass or visa for them.
There are restrictions on the number of foreigners you can hire. You must go by the quotas or rules in force for a particular work pass.
Trademark Registration
Though it is not mandatory, registering and using your trademark enhances the brand image of your company. It also helps in the identification of your products and services. Registering your trademark prevents your competitors from using similar marks and confusing your clients.
Procedure for Registering Your Trademark
To register your trademark, you have to apply to the Intellectual Property Office of Singapore (IPOS). This office processes applications and registers your trademark if it is valid. The process may take 12 months. Singapore trademark registration steps are as follows.
Step 1: Identify Goods and Services
Before you apply to IPOS, identify goods and services of interest to trademark. If you have any doubt about the classification, refer to the 45 types in the International Classification of Goods and Services.
Step 2: Research the Trademark to Avoid Conflict
If your trademark resembles another mark, it will raise objections from its owner. It will delay the successful processing of your application.
So, visit the IPOS Digital Hub e-services portal and research existing trademarks thoroughly. It will help you design a unique trademark. If your trademark is similar to an existing one, make necessary changes to avoid the conflict.
Step 3: Apply to IPOS
The fee to register a trade mark is $280 per class. Visit the IPOS Digital Hub portal, file your forms online and pay the registration fees to the IPOS. The cost is not refundable.
Step 4: Compliance
Fill out Form TM4 and submit it to IPOS to register your trademark. They will send you an examination report if your application fails to fulfil the requirements. It will outline objections and the particular goods and services in conflict. Respond to it within 4 months.
Step 5: Publish for Opposition Purposes
IPOS accepts your application and publishes it in the Trade Marks Journal. It is to see if a company opposes the registration of the mark. Such a party has 2 months to do it. If there is opposition, you must respond to it to solve the issue. The final decision is made after hearing from both of you.
Step 6: Registering Your Trademark Successfully
In the absence of opposition or after the resolution of the raised objections in your favour, IPOS will register the trademark in your name and will issue a registration certificate. It will be valid for 10 years from the application date. Afterwards, you can renew it by paying the fee.
Trademark Licence Registration
You may allow another entity, like a franchise, to use your trademark. You can do so by signing a trademark licence registration with it. This licence lets you document the duration, scope and terms of use, exclusivity, fees, permission to sub-licence the trademark, Etc.
Apply and Get Business Licences
You must apply and get all the necessary business licences and permits to start your business activities. Yes, certain businesses need to apply to the relevant Singaporean agencies, pay the fees, and get the licence.
Whether you want to start a new Singapore company or expand an existing business, you can rely on SBS Consulting. And as a reliable corporate services provider, our experts can give you the best advice for effective business management in Singapore. Contact us at +65-6536 0036 or email us at info@sbsgroup.com.sg.
Also Read: Singapore Company Registration Guide
