Singapore is known as Asia’s central business hub and a country where many businesses want to set up. Hence, many entrepreneurs consider incorporating their company here in Singapore. One may ask themselves if tech start-up registration is viable in Singapore. With a current population size of approximately 5.8 million, Singapore is an ideal testbed to test whatever innovative tech concept you may have.
There is also a Start-up SG Tech grant that your tech firm may benefit from. Through this grant, your firm may get early-stage funding to commercialise your tech.
Why incorporate your company in Singapore?
The Government launched the Digital Economy Framework in order to pivot the nation toward a digital-based society. This means that with this ‘Smart Nation’ direction, Singapore will be a tech hub for future inventions. This is the sole reason why the Government launch several types of start-up grants to attract creative individuals to incorporate their companies in Singapore.
With the growing number of Fintech start-ups, Singapore is heading in the right direction. The various strategies implemented are:
- The digitalisation of local industries and businesses to encourage economic growth
- Developing a high tech ecosystem to increase the number of tech start-ups
- Establishing the Info-comm Media industry as the foundation of the digital economy
Local companies can benefit for the first three years of their incorporation, tax exemption under the New Start-ups scheme. They are able to claim:
- Up to 75 per cent corporate tax exemption on the first $100,000 taxable earnings
- 50 per cent corporate tax exemption on the subsequent $200,000 taxable earnings
Things to note before you register your tech start-up in Singapore
1. Do proper market research, trends, and survey
Ensuring sufficient surveys and research of the current market helps you to discover vital information about current trends. With this information, you can better focus on various needs, problems, wants, and desires, developing ideas and inventions that will better fit into what Singaporeans are looking for.
2. Be aware of significant competitors in your niche
Understand their services and products thoroughly, their strengths, and their weaknesses. With these data, you can improve your products to stand out from your competitors. If you are developing products, you might also want to register and patent the products with Singapore Intellectual Property Protection.
3. Start-up funding
Once you have successfully incorporated your company in Singapore, it is time to make a trip to various banks for funding. You may also approach angel investors or venture capitalists. This group of investors are able to get tax deductions. However, they might also request a portion of the company’s share should they invest in yours. Angel investors typically fund potential start-ups when they are still small, whereas venture capitalists fund only in the later stage once the start-up is more or less stable.
Singapore also has various start-up programmes and grants, such as the Start-up SG Equity Scheme, in which the Government partners with specific third-party investors in the funding of start-ups.
4. Shareholding or ownership agreement
As a start-up owner, you need to deal with the Shareholder Agreement. This document, which helps both the start-up and fellow shareholders avoid potential issues, lists out the various Shareholders’ obligations and rights. It includes the definitive ownership details such as how profits are split as well as the direction and goals of said company.
Tech start-ups’ registration might be challenging to follow for many people. If you are a potential tech entrepreneur, whether local or foreign, you can approach a professional to guide and advise you in the process of company incorporation in Singapore.
AG Singapore can help you with that. Not only do we have the needed experience in helping incorporate companies in Singapore, but we also are an accounting firm in Singapore that provides affordable accounting services and audit firm services on top of other various corporate services. Contact us here to find out more.