Starting a Business in Singapore: 5 Essential Things to Get Right

1. How Do I Write a Business Plan?

A business idea is a starting point, but a business plan turns that idea into a workable path forward.
A practical business plan typically outlines:

• Your business goals and value proposition
• Why these goals are achievable
• Your target customers and go to market approach
• Expected costs, funding needs, and basic financial projections
• The team or individuals responsible for execution

Your first business plan does not need to be lengthy or complex. Many founders start with a concise version focused on the essentials and refine it over time as the business grows or when seeking funding.

If you plan to raise capital, your business plan will usually need deeper emphasis on:

• Management and governance
• Financial sustainability
• Growth potential and risks

 

2. Which Business Structure Should I Choose?

Choosing the right business structure affects your legal responsibilities, tax treatment, and personal liability. In Singapore, common structures include:

Sole Proprietorship

A business owned by a single individual or company. The sole proprietor has full control over the business and its decisions, and is personally liable for its debts and obligations.

Partnership

A business with between 2 and 20 partners. Partnerships do not have a separate legal identity from their partners. If the number of partners exceeds 20, the business must be registered as a company under the Companies Act, at which point it becomes a separate legal entity.

Limited Liability Partnership (LLP)

An LLP combines the flexibility of a partnership with a separate legal identity. Partners are generally not personally liable for business debts incurred by the LLP, though they may still be liable for losses arising from their own wrongful acts or omissions.

Limited Partnership (LP)

An LP consists of at least two partners:

• At least one general partner, who manages the business and has unlimited liability
• At least one limited partner, who has limited liability but does not take part in management
  An LP does not have a separate legal identity from its partners.

Each structure has different implications for risk, compliance, and scalability. Many founders consult professional advisers before deciding.

Private Limited Company

A private limited company is a separate legal entity from its owners. This means it can own property, enter into contracts, sue, and be sued in its own name. 

Shareholders generally have limited liability, which means they are not personally responsible for the company’s debts and losses beyond their investment in the company. 

However, companies also have more compliance requirements, such as filing annual returns and maintaining proper company records.

 

3. What Support Is Available for New and Growing Businesses?

Singapore is widely recognised as one of the most business friendly environments in the world. Support for businesses typically falls into two broad categories:

Grants and Capability Building Programmes

Government agencies such as Enterprise Singapore (EnterpriseSG) offer programmes that support businesses in areas such as:

• Capability development
• Innovation and productivity
• Overseas expansion

For early stage entrepreneurs, initiatives like Startup SG Founder, supported by ACE.SG, provide funding and mentorship to help Singaporeans start their first business.

Grants are generally non repayable, subject to programme conditions.

Government Assisted Financing

Beyond grants, businesses can also explore government assisted financing schemes that support working capital, growth, and operational needs. These are financing facilities, not grants, and are subject to eligibility criteria and approval.

DBS supports eligible SMEs through various government assisted financing schemes, helping make business funding more accessible.

 

4. Where and How Do I Register My Business in Singapore?

Businesses in Singapore are registered with the Accounting and Corporate Regulatory Authority (ACRA).

You can register your business through ACRA’s BizFile portal using Singpass. Alternatively, you may access this service via Citizen Connect Centres located in Community Centres, or at ACRA’s self service kiosks.

Depending on the nature of your business, some applications may require additional review by relevant authorities.

Once registration is complete, ACRA will issue your business a Unique Entity Number (UEN), which serves as a unique identifier for your business.

 

5. What Should I Do After I Have My UEN?

Once your business is registered, you can begin setting up the operational foundations needed to run day to day activities.

Most businesses will need a corporate account to manage transactions, receive payments, and pay suppliers. With a DBS Business Multi Currency Account, businesses can use DBS IDEAL for corporate internet banking, including payments via FAST and GIRO. Depending on the account type, businesses can enjoy up to 50 free FAST and GIRO transfers each month, or unlimited free transfers with the Starter Bundle.

After your account is set up, you may also consider tools that help manage everyday business spending more efficiently. For example, the DBS Business Advance+ Card, available to businesses with a DBS Business Multi Currency Account or Starter Bundle, allows you to:

• Track real time transactions
• Customise card payment controls through DBS IDEAL
• Earn unlimited 1% cashback on everyday B2B spend with a minimum spend of S$2,000 per month
• Enjoy $0 FX fees across 200+ countries and territories
• Enjoy complimentary corporate liability coverage of up to US$1.65 million per company
• (Eligibility and approval apply.)

You can also explore DBS BusinessClass for practical resources, business insights, and programmes tailored to entrepreneurs and new business owners.

 

Disclaimer

Starting a business involves multiple decisions including legal, financial, and operational. Understanding the fundamentals early helps you make informed choices as your business grows.
This guide provides an overview of key considerations. For advice specific to your situation, professional guidance is recommended.