When setting up a new business in Singapore, there are many legal requirements that you need to accomplish for proper documentation. One of these is registering your business with the Accounting and Corporate Regulatory Authority (ACRA). While there are cases wherein you can continue to run your business directly under your personal legal name only, opting to register it can afford your fledgling business various benefits and opportunities. Here are some advantages to having a business that’s properly registered.
1-Adds Credibility to Your Business
One struggle that newfound businesses often face is getting their name out there for potential clients or customers to know. This can be especially difficult for businesses in competitive industries such as food service or retail. Improving the credibility of your business can be one way to remedy this, as people are more likely to transact with trustworthy businesses. To this end, registering your business signals to customers that you’re a conscientious business owner and thus makes them feel more at ease to trust you with their patronage.
Luckily, the steps on how to register business in Singapore are quite straightforward so long as you have the necessary requirements. Just head on to Bizfile+ to fill in the application form that asks for your chosen business name, the primary activity your business would be undertaking, and so on. Moreover, since businesses registered are searchable on ACRA’s registry, that means your business can be conveniently found there and its legitimacy easily verified as well. This wouldn’t be possible if you were just running your business under your legal name.
2-Access to Grants and Tax Incentives
Registered businesses in Singapore are eligible to receive various grants and tax incentives. For one, industry-specific tax incentives are available for companies that provide products or services related to finances, tourism, e-commerce, research and development, global trading, and more.
Likewise, small and medium-sized enterprises (SMEs) and startups can also qualify for various grants. For instance, there’s the Market Readiness Assistance (MRA) grant that helps them expand operations to overseas markets. There’s also the Startup SG Tech grant that supports businesses looking to commercialize innovative technologies, such as those involved in robotics, healthcare, clean technology, and transportation technology, among others.
Starting a business is almost always a significant financial investment; you’ll certainly need to have a solid financial foundation to get it going. Thus, access to these financial support systems and incentives can be a great help for newly established businesses to find their footing first and not worry too much about cash flow during their early stages. Registered businesses can browse through Enterprise Singapore’s business resources and check which financial assistance they may be qualified for.
3-Allows Participation in Government Tenders
If you’re interested in becoming a supplier for a government project, then having a registered business allows your company to participate in a wider selection of tenders and procurement opportunities. Since the deal here is between your business and the government, you can rest assured that your products or services will be paid for, unlike with some private sector deals that may go bust due to circumstances that are out of your control.
Participating in government tenders can be a way for your business to not only profit but also be recognized if you manage to secure the bid, allowing you to build more connections and expand your reach. Simply put, this allows you to further get your business name out there and potentially pull in more clients in the future.
4-Separates Your Personal and Business Finances
If you register your business as a company or under a limited liability partnership, then you can count on having your personal and business finances separated in the setup. How does this benefit you and your business? For one, separate finances means preventing the commingling of assets and making it easier to make financial statements. This, in turn, could help your business build a better credit score. A good credit score can then open up more opportunities for your business and even make it easier to apply for loans.
Businesses also enjoy various tax deductions which may not be available if you’re only operating your business under your personal entity. Separating your personal and business finances also makes it easier to monitor the cash flow of your company only and thus get a better assessment of its financial standing. In addition, this makes your business a separate legal entity, meaning if someone takes legal action against your company, then your personal assets won’t be involved.
Registering a business doesn’t only increase its credibility, it can also help establish a stronger brand identity to help it grow and thrive. It assures your customers that the business they’re patronizing is operating under legal conditions, thus gaining their trust. Thanks to Singapore’s e-services, it’s quick and easy to register your business. So, when you’re ready to launch that new business, make sure you have it registered to enjoy all the benefits the status has to offer.
