Starting a Biz in SG: From ‘Aiyo’ to ‘Swee’

Reading Time: 5 minutes

Editor’s Note: Heads up! We’ll be using a bit of Singlish in this guide to keep things fun and relatable. Don’t worry, everything will still be clear as day--lah!

So you’ve decided to start a business in Singapore? Wah, big step! I bet you’re already picturing your signboard up and people queuing for your product or service. That’s probably why you’re reading this now--to make sure you get everything right. But before you get there, you’ve got to take care of some important things. Don’t worry though--this guide will walk you through everything, like chatting with a friend over kopi. We’ll keep it simple lah. Ready? Let’s go!

1. Registering Your Business: Like Getting Your Business IC

First things first--you need to register your business with ACRA (Accounting and Corporate Regulatory Authority). It’s like getting an IC for your business. If you’re planning to grow big and keep your personal assets safe, most people choose Private Limited (Pte. Ltd.). This means that if your business doesn’t do well (choi, touch wood!), your house and car are protected. Sole proprietorship? You’d be personally liable for everything--so, better play it safe hor!

Pro Tip: Registering through BizFile+ is faster than ordering a Kopi-O kosong. Just head online, fill in some forms, and within a day, your business is official!

Once you’ve sorted out the registration, give yourself a pat on the back--you’re now officially a business owner! But before you start planning that grand opening, there are still a few key things to tick off to make sure everything runs smoothly.

2. Corporate Income Tax: Don’t Worry, It’s Not That Painful

When you hear “tax”, you probably imagine your wallet getting lighter, right? But honestly, Singapore’s corporate tax rate is pretty chill--17%, one of the lowest in the world. And guess what? For YA 2024, there’s a 50% rebate on your tax bill (up to SGD 40,000). If you hired at least one local worker last year, you could even get a SGD 2,000 cash payout from the government. Not too bad right?

But wait, there’s more! Start-ups get extra love here. If you’re just starting, you get a 75% tax exemption on your first SGD 100,000 of income. It’s like the government saying, “Jia you! We got your back!”

Make sure you stay on top of tax deadlines, though--IRAS isn’t your friendly neighborhood kopi uncle. If you miss a deadline, confirm kena fine one. Keep track of your accounts and stay in their good books!

Oh, and speaking of taxes, don’t forget to check out our article on filing taxes and IR8A to help you stay compliant and stress-free.

3. GST: To Charge or Not to Charge?

Next up--GST (Goods and Services Tax). Right now, Singapore’s GST rate is 9% (yep, it went up this year). If your business earns over SGD 1 million a year, you’ve got to register for GST and start charging it. This means if you’re selling something for SGD 10, you’ll need to charge SGD 10.90 with GST.

If you’re not hitting that revenue mark yet, no problem! You don’t need to worry about GST until you’re pulling in the big bucks. When that time comes, make sure you register with IRAS to avoid trouble.

Pro Tip: Many businesses include GST in their prices, so customers don’t get a shock when they see the final total. If not, make sure to state clearly that “price excludes GST and service charge.” You don’t want people to feel like you’re “chopping” them at checkout--transparency builds trust!

4. CPF Contributions: Because You Gotta Take Care of Your People

If you’ve hired Singaporeans or PRs, you’ll need to contribute to their CPF (Central Provident Fund). This is Singapore’s social safety net for retirement, housing, and healthcare. Employers (that’s you!) contribute 17% of your employee’s salary, and your employees chip in 20% from their pay.

Now, I know what you’re thinking--“Wah, so much to calculate!” But no worries, CPF calculations and payments can be automated with tools like Talenox. We handle all the number crunching for you, so you’ll never miss a deadline and won’t have to worry about CPF fines. Trust me, CPF penalties can be like buying a meal at a fancy restaurant--expensive.

5. The Employment Act: Keeping Your Employees Happy

As a business owner, you’ve got to make sure your staff is well taken care of. Singapore’s Employment Act lays out the basic rights of employees, and it’s super important you follow these rules:

Annual Leave: Your employees get at least 7 days of paid leave once they’ve worked for you for a year. More years with you, more leave.

Sick Leave: After 3 months of work, employees are entitled to paid sick leave--but they need to bring their MC (medical certificate). It’s not like when we were kids and could act sick to skip school!

Local Tip: Flu season comes hard, and you’ll see those MCs coming in fast. But it’s important to give your employees the support they need to recover. Healthy employees = happy employees = better business.

Also, don’t forget maternity leave, paternity leave, and managing disputes. Taking care of these things will make sure your business runs smoothly without drama.

Want more info on paternity and childcare leave? Check out our full guide here!

6. Filing Taxes: IRAS Doesn’t Mess Around

Now, for the not-so-fun part--filing taxes. As much as we love Singapore’s efficiency, tax deadlines are strict. You’ll need to file your Estimated Chargeable Income (ECI) within 3 months of your financial year-end. And don’t forget your annual tax return by 30 November. Miss it, and you’ll get hit with fines--confirm will one.

If you have employees, there’s also the IR8A form. This form reports your employees’ income to IRAS, and it’s a must for making sure CPF and taxes are all correctly accounted for. But relax--if you’re using Talenox, we’ll take care of all this for you. Filing’s as simple as ordering cai fan or nasi padang --pick your options and you’re set!

7. Grants and Support: Free Money, Anyone?

One of the best things about doing business in Singapore is the government’s support for entrepreneurs. Got a new business? The government’s ready to back you up! Here are two grants you should know:

Productivity Solutions Grant (PSG): This grant covers up to 50% of the cost for adopting digital tools like payroll software, accounting systems, and e-commerce platforms. (P.S. Talenox is eligible if you go through one of our partners, such as RecruitSG!)

Enterprise Development Grant (EDG): For businesses that are growing fast and looking to expand, this one provides funding for innovation and international expansion.

Pro Tip: Don’t be paiseh (shy) about applying for grants. The government literally wants to give you money to succeed, so go ahead and apply!

8. How Talenox Makes Your Life Easier

Now, after reading all this, you’re probably thinking, “Wah, so much to handle!” But no worries--that’s why we created Talenox. We’re here to make your life easier. From CPF contributions to payroll and tax reports, Talenox automates the boring stuff so you can focus on growing your business.

Here’s what we do:

CPF Contributions: No more manual calculations--Talenox handles everything, so you never miss a payment.
Payroll and Tax Reports: Filing taxes becomes a breeze with our ready-to-go payroll and tax reports. IRAS will love you.
Leave Management: Track your employees’ leave and make sure they’re getting the rest they deserve. No more messy spreadsheets or forgotten leave balances.

Running a business is tough, but with the right tools (ahem, Talenox), it doesn’t have to be a constant struggle. We’ll handle the admin--you handle the business.

That’s it for now! With these essentials covered, you’re already on your way to becoming the next big boss in Singapore. Just keep in mind, staying compliant and organised is key to keeping things running smoothly. And remember, there’s plenty of support out there--from grants to digital tools like Talenox--to help you along the way. Got a question? Don’t paiseh. Just leave us a comment below.