5 easy steps for a guitar teacher to start a business in Singapore
Starting a business in Singapore is very easy. That is because the company formation process is fast and direct. Furthermore, you can enjoy many benefits like tax incentives and 100% company ownership of your guitar school. Thus, to start business in Singapore is a good decision to make as an entrepreneur.
Are you planning to start business in Singapore? Do you want to enjoy the benefits of having a incorporating a company in Singapore? If so, you’ll need a fast company formation Singapore solution. You need a company formation Singapore agency to guide you through setting up a guitar school. However, it is also important that you know the process to start business in Singapore. In this article, we’ll cover the five easy steps for you to file the incorporate company in Singapore application.
Step #1 – Choose a business entity in the application to incorporate company in Singapore
As a guitar teacher looking to start a company, the first step is to choose your business entity. In Singapore, you can register a business in different types of entities. Below are three of the most common business entity.
Public limited company by shares
A public limited company by shares is a limited liability company in Singapore that is open to the general public. This means that the company shares, or the shares of your guitar school, are open to being acquired by ordinary Singapore residents. Registering as a public limited company by shares is an easy way to get into the Singapore stock market.
A new set up company under public limited by shares has the power to raise funds from the public. However, there are some strict requirements to follow to do this. Furthermore, it needs the approval of a governing body. A public limited company is technically owned by the general public. That is why the top priority of this company is the return-on-investment of the shareholders.
Public limited company by guarantee
If you plan to start a non-profit business in Singapore, you need to register as a public limited company by guarantee. This guitar school does not have shareholders. Your guitar school only has members who contribute monetary donations to keep the organization functioning.
Private limited company
Most Singapore guitar schools are registered as a private limited company. That is because it is a scalable and flexible business entity. It also has the most benefits among the other business entities.
The benefits of a private limited company include reputation. This means a private new set up company can easily apply for loans. They can also get music instrument suppliers and guitar students easily. Another attractive benefit of a private limited company is the tax incentives. The first S$300,000 sale is tax-free if you start business in Singapore. Profits from teaching the guitar are only taxed once. This means that dividends are tax-free. In addition, you can get a corporate tax percentage for as low as 5%.
Another advantage of a private limited company is shareholders are not liable for the business. That is because a new company set up under private limited is separate from the shareholders. Even if there will be changes with the shareholders, it will not affect the business operations.
Those are only some of the business entities you can register in Singapore. Whichever business entity you choose, you’ll need a guide. A company formation Singapore service agency can help you register any business entity.
Step #2 – Register your new company’s name
The second easy step to start business in Singapore is company name registration. For the company name to be eligible, you’ll need to follow ACRA’s rules. There should not be any vulgar words in the name. There must not be any copyright problems. If you are private limited company, your company name should have “Pte. Ltd.” at the end.
Despite setting up a guitar school, your company name can’t include the words “school”. If the company name includes words like “hospital” or “school”, ACRA will seek approval from concerned authoritative bodies. This usually makes the incorporate company in Singapore procedure longer. However, if there are no issues found, company name approval only takes about an hour.
You can register the company name by applying at BizFile+ portal. Once approved, you have 60 days to start business in Singapore. Otherwise, the company name will be removed from the reservation list. This means other companies can register for that company name. However, you can request another 60 days extension if you feel 60 days is too short to start business in Singapore.
Step #3 – Start completing the company formation requirements
There are requirements you need to complete to start business in Singapore. These company formation Singapore requirements are set by ACRA. Inland Revenue Authority of Singapore (IRAS) included a few rules that every business should abide to. Below are the requirements to incorporate a company in Singapore.
- A minimum of one (1) shareholder.
- A minimum of one (1) director (At least one should be a Singaporean citizen).
- A company secretary (Must be a Singaporean resident and knows the company obligations in Singapore).
- A minimum of S$1 capital.
- A registered physical office address. This can be the address of your guitar school / home.
If you haven’t obtained any of the following yet, you need to do so before the 60 days expires. If you need help with the requirements to incorporate company in Singapore, ask your company formation Singapore consultant for help.
Step #4 – Prepare the company formation Singapore documents
Once you have completed the requirements, you need to prepare the necessary documents relating to your new music school. This is another simple but time-consuming step to starting business in Singapore. That is why you need the help of a company formation Singapore service agency. The following documents are what you need to prepare in order to incorporate a company in Singapore.
- ACRA-approved company name
- Business activities short description
- A registered business address in Singapore
- Information on each company shareholder
- Information on each company director
- Information on the company secretary
- Copy of Singapore identification card (if Singapore citizen)
- Copy of passport (if foreign citizen)
- Proof of overseas residency (if foreign citizen)
- Copy of Memorandum & Articles of Associations (if foreign company)
If you are having trouble preparing these requirements to incorporate a company in Singapore, seek help. A company formation Singapore service agency can work with you to complete this and start your music school.
Step #5 – Register at ACRA
The last step to start business in Singapore is to submit an application at BizFile+. If there are no issues, this process will only take an hour. After the registration, you can know officially begin business operations. To avoid issues when incorporating a company in Singapore, hire a competent consultancy.
Contact WLP Group
In this article, we cover the five easy steps to start business in Singapore as a guitar teacher. All these steps to incorporate a company in Singapore are easy to do. However, it can be time-consuming especially if you are not familiar with the process. That is why a company formation Singapore agency can guide you through starting your guitar school.
If you are looking for a company formation Singapore agency, you don’t need to look far. WLP Group is your one-stop solution for all your company incorporation needs.