Startup Registration Singapore
The founders prefer startup registration Singapore for the ‘Ease of Doing Business’ it offers. With a population of close to 5.5 million, Singapore also serves them as a compact test-bed to test new technologies.
Singapore has rightfully claimed its place as a ‘Startup Country with its well-supported startup ecosystem.’ Foreign investors and entrepreneurs, especially those from Asia, come to Singapore for their tech startup registration.
Their commitments are more profound than just a startup registration Singapore. They come fully prepared to relocate, work, and live with their families in this city-state.
Singapore is in a transition period. The planners want to transform it from a trading economy and develop it into innovation and knowledge-driven economy. Various government agencies are playing an important role to visualise the vision.
Infocomm Development Authority of Singapore (IDA), a key government agency, expects tech innovators to do their part in building Singapore into a ‘Smart Nation’. It expects local technology startups to focus on innovations that have global applications and generate knowledge-based jobs for Singaporeans.
Tech Startup Registration Services
Startup registration Singapore is easy. SBS Consulting has a team of professionals to help you with your tech startup registration. They can advise you on the business structure most suitable for your business needs. There are 5 such structures you can choose from. However, you need to choose your’s based on the risk involved, low liability, taxation, credibility, & fundraising opportunities.
- You need to know if the technology you are advancing has practical applications and markets
- Judge whether you can realise it into life-changing products for global users. If the data makes sense, go for your tech startup registration
- Start knowing your competitors in the same field. If possible, also explore the licensing of the technology to reduce the time and expenses to market your products
- Determine the product launch date
- Determine the ownership of Intellectual Property (IP)
- Your role as the founder
- Check out means of getting capital and growing your business in the shortest possible time
- Determine whether you will work to grow your startup into a self-reliant company or are open to acquisition, or go public
- Take steps to build a skilled team. It is what will make or break your tech startup
3 Stages to Tech Startup Registration in Singapore
Step 1: Registration of Interest
The startup owners need to prepare and submit a proposed project summary. As your Singapore company registration services provider, we can help you complete the Enterprise Singapore Startup SG Tech Registration of Interest Form.
Our experts will also assist you in submitting your completed form online, along with the required data, to the concerned authorities. After processing the form, the Enterprise Singapore officials will convey whether your project is eligible or not.
Step 2: Application and Evaluation
If Enterprise Singapore approves your project, we will assist you in submitting a formal application. Our experts will help you with the Startup SG Tech Proposal Template_Enterprise Singapore Template full business proposal and presentation of cost breakdown.
The agency assesses such proposals based on their inattentiveness, technical feasibility and commercialisation aspects.
Step 3: Final Panel Evaluation
If your proposal is shortlisted, you, as a startup founder, will get the opportunity to present your proposal to a final evaluation panel. It is consists of experts from the industry, and it has the final say about the eligibility of your submission.
Be a Successful Tech Startup Founder
If you want to succeed as a tech startup founder, here are a few things that will help you:
IP Protection
Get your invention patented. As an incorporation services provider, we advise startup founders on filing a patent application. Doing so helps in protecting your IP. It is the main asset of a tech startup. It prevents copycats from copying it and harming your prospects.
Networking
Communicating with other enthusiastic entrepreneurs will broaden your horizons. Discussing your proposal with them may help you in ironing out the shortcomings.
You should also pitch it to experienced investors active in the startup field. In addition to seed funding, they can also provide hands-on mentorship in the initial days of your startups. They might help zero in on difficulties and solutions and add value to your proposal to make it appealing to target customers.
Negotiate License or Option Agreement
You can go to startup incubators, accelerators, the Singapore government, venture capitalists, or angel investors for seed funding for your startup. Make sure to negotiate the license agreement or option agreement with the lender.
A license agreement enables you the commercial use of IP (a patent or copyright). With an option agreement, you have the right to obtain a full license agreement. However, you need to exercise the option to obtain it within the prescribed time period.
External Funding
Commercialising a technology into a product is costly. You will need to look for external funding. You can approach equity funds, angel investors, private financiers, and venture capitalist firms. Or you can explore schemes like Technology Enterprise Commercialisation Scheme (TECS) that are run by the Singapore government or its agencies for funding tech startups.
Shareholders Agreement
Shareholders agreement specifies their rights and obligations. It also defines the relationship between them. It is a document that every tech startup founder should take seriously.
The agreement details the controlling rights of the company and how it will be managed. It also gives guidelines for the life-cycle events of a startup. It dictates startup’s fundraising, shareholder loan and dilution, dividends, and breach of obligations. It also informs on protecting the rights of minority shareholders and a shareholder’s death.
As the brain behind the startup, you should always aim for the controlling rights of the company. If you have them, you are the undisputed decision-maker in the company. You make sure that you are not voted out of your company.
As your tech startup registration services provider, we can advise you on it. You can use the shareholder’s agreement to dictate unanimous approval for certain decisions required, a majority vote for others and default cause. Call us on +65-6536 0036 or send an email at info@sbsgroup.com.sg to know how we can make your startup registration Singapore easy.
Each year, many entrepreneurs opt for their company incorporation in Singapore. They benefit from the low tax rates, government grants, and multiple funding options.
An initiative called Startup SG groups startup schemes and grants. Its objective is to open up funding opportunities and mentorship programs to the local startups. These includes:
Startup SG Equality: It is an investment fund under which government and private investors co-invest in startups.
Startup SG Tech: The grant is awarded to startups that are actively developing new technology. Their Proof-of-Concept and Proof-of-Viability stages are funded through this grant.
Startup SG Founder: New entrepreneurs with innovative business ideas can use funding through this medium. Singapore citizens and permanent residents can get up to S$30,000 if they raise $10,000. They also get access to mentorship and business guidance from Singaporean incubators.
Startup Incubators: Singapore has many startup incubators that work with new startups specialising in hardware, robotics, automation, AI, AR/VR, manufacturing, engineering, healthcare, biomedical sciences, digital economy, software, fintech, cyber security, data analytics, transportation, e-commerce, logistics, big data, Etc.
Angel Investors: These are high net worth individual investors that fund startups at their seed stage. The startup gets easy and quick access to capital. Some of the Angels are:
- Business Angel Network South East Asia (BANSEA)
- Business Angel Scheme (BAS)
- Singapore Angel Network (SGAN)
Venture Capital Firms: These lenders often fund startups at their later stages. They can invest large sums to help the startup expand its activities.
Singapore has many venture capitals firms like:
- Singtel Innov8
- KK Funds
- East Ventures
- Golden Gate Ventures
Private Equity Firms: These firms invest in startups that are already profitable and are in a high-growth stage. A few of them are as listed below:
- 3V Source One Capital
- Venstar
- Navis Capital Partners
Anyone who is over the age of 18 can opt for a startup registration Singapore. Both locals and foreign entrepreneurs can own 100% shares in their company.
For company incorporation, you need to apply to Accounting and Corporate Regulatory Authority (ACRA). ACRA acts as the Company Registrar of Singapore.
Firstly, during the process, you need to register your company name with ACRA. Secondly, you apply to register your company with ACRA. Generally, ACRA takes about 1-3 days to process such an application.
You need to make a list of company names and check the availability of each one on ACRA's online portal, BizFile+. Pay S$15 to register the available name. ACRA takes about a few hours or a day for the company name approval. You can use it for 60 days.
Anyone over the age of 18 can opt for company incorporation in Singapore. Yes, foreign entrepreneurs need a work visa or pass to relocate and work in Singapore.
Entrepreneur Pass (EntrePass)
Ministry of Manpower of Singapore awards Entrepreneur passes to qualified individuals. This pass enables its holders to relocate to Singapore. They then can opt for their startup registration Singapore.
If they have already registered their business, they still can apply for EntrePass, provided their company is less than 6 months old.
Employment Pass
Employment pass is granted to qualified professionals with educational qualifications. Their Singapore employer applies for their employment pass.
Like everyone, employment pass holders can opt for their company incorporation in Singapore. The pass forbids them from working for other employers.
If their employer gives them NOC, they can act as their company's foreign directors. However, they cannot work as a resident or local director for their company.
No, foreigners do not need a local partner or a Singaporean for their startup registration Singapore. They are allowed 100% ownership of their company.
You need to get your proposed company's name approved by the Accounting and Corporate Regulatory Authority (ACRA). ACRA is the Company Registrar of Singapore and governs locally registered companies. It has the power to reject your company name. And you will need to start the process again, wasting your valuable time.
For successful company incorporation, choose a self-explanatory name. It will allow a reader to make a successful guess at your business activities. While choosing a name for your new company, stick by the suggestions listed below:
- It cannot infringe upon current trademarks registered by others
- It cannot be obscene or vulgar
- It is not black-listed by the Minister
- It cannot be the same or similar to any existing business in Singapore
- It is not reserved for the use of any other entity
