Setting up a business in Singapore?

Need help in setting up a business in Singapore the right way?

Starting a company in Singapore can be quite easy, but you may need help or expertise with various aspects. You’ll potentially need to think about company constitutions, accounting solutions and employee benefits packages, for example, and other legal and professional services. Here are four areas to look at when setting up a business in Singapore and companies who can help you with doing it the right way.

#1 Legal set-up and compliance for starting a business

Starting a company in Singapore comes with added layers of regulatory complexity for expatriates and foreign founders. Whether you’re setting up a consultancy, e-commerce platform or small agency, Legal Expat SG provides practical legal solutions to help you launch confidently and remain compliant. Its fixed-fee packages cover all major incorporation requirements, including reviewing and preparing the company’s constitution, appointing local directors if needed and drafting shareholder agreements. The firm also advises on choosing the right entity structure, depending on your business model and long-term goals. It can also liaise with the company secretary to address any gaps.

If you’re starting a business that’s regulated – fintech, education or consultancy involving sensitive data – Legal Expat SG assists in identifying licensing obligations with relevant authorities to avoid unintended non-compliance. The team also drafts tailored commercial agreements such as terms of service, privacy policies, and service-level agreements that reflect your business realities and are enforceable under Singapore law. In addition, they’ll assist early-stage founders with founder agreements, IP assignment terms and investor-side due-diligence preparation.

Foreigners who don’t hold PR or citizenship must consider their work pass eligibility when starting up a company. Depending on the circumstances, this may involve applying for an Employment Pass (EP), a Letter of Consent (LOC) linked to a Dependant’s Pass, or an EntrePass. Beyond ensuring legal compliance from the incorporation, business owners have to ensure ongoing corporate governance with attention to corporate secretarial duties. These include keeping the company’s registers updated, holding annual general meetings where applicable and filing annual returns.

8093 4393 | info@legalexpat.sg 
legalexpat.sg

#2 Think about employee benefits when setting up a business

When starting a company in Singapore, it’s essential to recognise that your employees will play a pivotal role in your success and growth. Therefore, rethinking the employee benefits package is vital when competing for top talent.

Pacific Prime CXA recommends creating flexible employee benefits packages that cater for various career and professional growth. Today’s employees are gravitating toward benefits that emphasise financial wellbeing and solvency, work-life balance, mental health, retirement and long-term health coverage.

Flexible benefits allow employees to choose from a wide range of options tailored to their diverse needs. Whether starting a new job, buying their first home or starting a family, employees can find suitable coverage for their life stages. This customisation process involves purchasing add-ons and adjusting their benefits annually, maximising the value of their package. The variety of options for consideration include gym reimbursements, work-from-home flexibility and additional time off.

Employee Assistance Programs (EAPs) have also gained popularity, especially those addressing anxiety, stress and burnout. Furthermore, financial wellness support – ranging from debt management tools to retirement planning and education allowances – should not be overlooked, as it closely aligns with mental health.

Pacific Prime CXA is a global employee benefits specialist and health insurance broker. It can assist you in personalising an employee benefits package that best suits your needs when starting a business in Singapore. Get in touch with an expert at the firm for impartial advice and a free plan comparison today. For a more detailed look at emerging employee benefits trends and actionable steps for employers, download your free copy of Pacific Prime’s Global Employee Benefits Trends Report 2024.

6346 3781 | pacificprime.sg

#3 Digital solutions for cloud accounting and professional services

Since 2017, D Next Stop has been providing one-stop digital solutions for those starting a company in Singapore. In particular, it focuses on outsourced cloud accounting and other corporate services such as company secretarial and outsourced payroll. Plus, the team are pros at corporate tax services like corporate tax filing and GST filing services.

Aimed at small-to-medium businesses, D Next Stop’s services allow owners to manage all the compliance needs of running their business under one roof. Business owners also have access to a range of other digital solutions that can address their pain points while running their businesses. These solutions all integrate seamlessly with Xero such as payroll solutions, payment solutions, data processing solutions and more.

The platforms allow businesses to manage and track their financial health, sales, payroll and expenses, including data analytics that provide valuable business insights. Business owners can therefore expand their reach, enhance efficiency and improve customer satisfaction.

Here’s a snapshot of the four broad categories of services offered by D Next Stop for those starting a business:

• Monthly accounting – from $400 per month, including preparation of annual unaudited financial statements. Fees vary per client depending on complexity and number of transactions. Preparation of unaudited financial statements starts from $1200 per set.
• Company secretary – $1000 annual retainer.
• Monthly payroll processing – from $200 per month for up to four workers; additional workers charged at $50/month per person.
• Corporate tax filing – from $800 per filing (depending on complexity) and quarterly GST submissions from $300 per filing.

6333 5886 | enquiry@dnextstop.com
dnextstop.com

#4 Contracts and employment law for expat and local hires

Hiring here involves more than just choosing the right candidate. When setting up a business in Singapore, business owners must also meet their obligations according to MOM rules.

Legal Expat SG provides support for expat-run businesses by addressing practical hiring concerns, which it says helps minimise the risk of any future disputes. For example, it offers assistance with drafting employment contracts for full-time and part-time hires, compliant with Singapore’s Employment Act. This includes minimum notice periods, salary frequency, CPF contributions for locals, probation terms, termination triggers, IP ownership and confidentiality obligations. The law firm also assists in drafting company handbooks, HR policies and variable incentive schemes when starting a business.

Companies that are hiring across borders are also supported. This can involve engaging remote contractors in the region or hiring fellow expats in Singapore. The law firm advises on the legal differences between independent contractor and employee relationships. This helps business owners manage legal risk and classify hires appropriately. Additionally, it assists in drafting freelance and consultancy agreements for clarity of job scope, deliverables and liability limitations.

For foreign employees, Legal Expat SG will guide clients through work pass requirements, and advise on structuring roles and salaries in accordance with MOM rules. The firm also ensures that contracts are drafted in line with the Singapore’s Employment Act and remain enforceable. If there are sensitive matters such as employee termination, non-compete clauses, severance packages and dispute resolution, the team can also assist with those.

The firm says its goal is to help expat founders build strong, compliant employment frameworks from the outset. This is regardless of whether you’re hiring your first employee or growing a small team across multiple jurisdictions.

8093 4393 | info@legalexpat.sg 
legalexpat.sg

Now you’ve got some great tips on starting a company in Singapore, read more about living in Singapore and the best things to do in Singapore.