Whether you relocated to Singapore to start your own business or developed a business idea after your arrival, staying current with business regulation and rules pertaining to start-ups is important.  In early 2010 there was heated buzz about the new regulation which the Singapore government implemented. Are they an impediment against entrepreneurship or do they serve to bolster consumer confidence and commitment among the Small and Medium size Enterprise (SME) community.
 
In the past, there was very little restriction as to whom could set-up a Private Limited (Pte Ltd) company.  Today, foreigners must apply for the EntrePass (Entrepreneur Pass) in order to incorporate a business.  The application is similar to that of any other visa but must be accompanied by a detailed business plan of no more than 10 pages which must include the  business idea, logistics, marketing plan, previous experience and qualifications, projected investment and future expansion plans. 
 
Also required is a $3,000 banker’s guarantee or signature by a local (Singaporean or PR) sponsor whom will take responsibility for your stay in Singapore.  The current processing time is three weeks to three months.  Applications are evaluated by both the Ministry of Manpower and the Standard, Productivity and Innovation Board.
 
As yet, there is little direction as to what types of business ideas will be approved.  Rejections can be appealed, but like all other visas, there is no specific reason referenced for the rejection.  Look to the renewal rules for guidance here.
 
Prior to last year’s tightening of new business requistes, there was no requirement with regards to the minimum financial commitment to set-up a company and the incorporation process could be completed with as little as S$1.  Now S$50,000 paid-up capital is the minimum requirement.  This investment guarantee is meant to encourage foreigners to commit to their enterprises and to Singapore. 
 
While many business owners feel this bolsters consumer confidence in small businesses, some feel this restricts the more creative and service-oriented businesses such as consultants, freelancers, social media and web-based companies. The Singapore government does offer staggered investment of the capital, but this is evaluated on a case-by-case basis and the time lapse is determined by MOM.
 
While subjectivity rules upon your initial application, EntrePass Renewals are contingent upon very well defined factors: the employment of local staff and total business spending (TBS).  The first renewal application must verify proof of employment and CPF Statements of 2 local staff and $100,000 of TBS.  The second renewal must provide proof of 4 local employees and $150,000 TBS.  These detailed figures clearly define growth, financial investment and employment opportunities created for Singaporeans as crucial to the sustained support of your EntrePass.
 
The current tax exemption scheme for start-ups is also a highlight, as it provides $100,000 per year of untaxed normal chargeable income for you r first three years in business. The tax burden is essentially removed during your initial years to stimulate growth.
 
The new regulation encourages entrepreneurs to commit to their enterprises, with both capital and long-term vision while the investment requirements and visa stipulations make starting a business more of a commitment than in the past.  Overall, I do believe the new regulation will raise awareness of the strength of the small business community in Singapore and bolster consumer confidence. 
 
If you’re considering setting-up your own business,  do your research, talk to other business owners and get advice on the best way to get started.  And of course, once you’re incorporated, do not forget to purchase insurance to protect your business investment!        
 
Checklist for Incorporation:

•      Valid visa
•      Register company name
•      1 resident Director
•      1 shareholder: individual or company
•      Company secretary
•      Corporate bank statement with S$50,000

 
Useful Links
          SPRING: www.spring.gov.sg
          MOM: www.mom.gov.sg
          IRAS: www.iras.gov.sg
          ACRA & BizFile: www.acra.gov.sg