MoneyFM: Overcoming the Challenges of Doing Business in Singapore
6 minute read
Singapore is renowned for its ease of doing business and being the world-class business hub of Southeast Asia. From the competitive workforce to the attractive financial economic policies, it is no wonder why businesses and business owners are attracted to our little red dot.
Nonetheless, starting a business comes with its inevitable challenges; and the pandemic has added more to the list. With travel bans and movement restrictions still in place, how can foreign entrepreneurs overcome these obstacles?
In our radio segment with MoneyFM, our co-founder and CEO of Sleek, Julien Labruyere, shares how digital solutions can enlighten your business’ needs.
Continue reading to find out more about the talking points answered and gain access to the audio of the radio segment.
Challenges remote businesses face when incorporating in Singapore
Know Your Customer documents (KYC): KYC processes are meant to facilitate identity verification and prevent identity fraud. Many organisations still require physical or face-to-face documentation, which may pose as a challenge for digital nomads and entrepreneurs residing in other countries.
International Tax Advisory: Varying based on revenue, subsidies and local regulations, salaries are another complicated undertaking for overseas-based entrepreneurs with international tax declarations in mind.
Local directors: The Singaporean government requires every company to have at least one director residing in the country. For overseas-based business owners, this may result in additional costs for their newly started business.
Other challenges discussed include the opening of bank accounts, compliance requirements and registration difficulties for companies relying on e-commerce.
How traditional practices cost new businesses too much money
Lack of digitalisation: Traditional legal services rely heavily on physical paperwork, which results in cumulating costs from printing, scanning and mailing (not to mention the environmental effects!). Unlike the industry norm, Sleek leverages on tech and digitalisation to help your business save time and resources.
Lack of productivity: As a new business, time is money. Many business owners often waste their time with mundane tasks secondary to their business, such as contacting their accountants and corporate secretaries, when they can self-educate with a quick search – at a fraction of the time.
Hidden costs: Traditional corporate secretaries often over-charge for their services, given the lack of transparency in pricing and disconnected nature of the various parties involved.
Common mistakes made by entrepreneurs setting up a business in Singapore
Lack of knowledge & research: Not all good ideas are good businesses. It is crucial for budding entrepreneurs to take time to do the appropriate research on the markets and the relevant costs they should expect to incur.
Poor financial control: Your business may be profitable, but disorderly finances can well be its downfall. Proper financial control from day one is key!
Wrong first hires: Often underestimated, your first hires are the ones helping you build your business. If one of the three employees you hire are underperforming, they are pulling your business down, too!
Curious to learn more?
If these topics have piqued your interest, MoneyFM’s radio segment is sure to help you!
Well it’s simple! If you have any questions about getting your business started, get them all answered by having a free consultation call with our experts.