4 Things you should know before launching a tech-startup in Singapore (1)

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4 Things you should know before launching a
tech-startup in Singapore
Bestar Services Pte. Ltd
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A Guide to Singapore Company Law
A Guide to Singapore Company Law

• Singapore is considered a business hub because it
  features as one of the top business-friendly
  countries of the world. If you are an
  entrepreneur and have a tech-startup idea,
  Singapore is a great country to start with.
  Singapore Economic Development Board (EDB) has
  declared a Tech startup program in Singapore.
• This program encourages all the entrepreneurs to
  base their startup companies in Singapore. Hence,
  in this article, we cover all the basics of the
  things you should know before going through the
  process.

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Why Singapore?
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Want to start a tech-business in Singapore?

• Following are the key factors that you should
  take care of while trying to establish a startup
  in Singapore
• Studying basic market trends and research
• Current competition levels
• Funding availability
• Ownership/shareholder details

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Let us understand each of the above-mentioned
aspects in detail
1. Studying basic market trends and research

• Singapore is a quirky place to be for a startup
  and entrepreneurs. The country is a huge hub for
  the PropTech industry. But so many companies are
  just portal websites and very few actually have
  site developers. Therefore, a tech startup in
  this situation can connect with the agencies
  instead of builders.
• About 81 of Singapore citizens do not have their
  own private property. However, the home ownership
  rate is around 91. This is an important fact
  that tech startups should consider.

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1. Studying basic market trends and research

• Singapore is known as a tech and a financial hub.
  A high percentage of senior citizens are
  comfortable with Robo Advisors. This could be
  huge for FinTech companies.
• If you are an EdTech startup, you will face a
  significant amount of competition in the
  industry. Hence, you need to have a lot of
  innovative ideas. Therefore, before launching
  your startup, it is advisable to study market
  trends for your industry.

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2. Current competition levels

• Singapore boasts of having the most competitive
  economy that has overtaken Hong Kong and UK. The
  government agencies encourage competitions to
  eliminate cartels and monopoly.
• Singapore recently announced its commitment to
  defy the wave of protectionism. Therefore, your
  startup will never face discrimination compared
  to existing companies.

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2. Current competition levels

• The Intellectual Property Protection law,
  declared in 2019, ensures that companies have
  healthy competition. This law also ensures that
  the new companies also receive protection. But it
  is advisable to get a patent for any new ideas
  the entrepreneur may have come with.
• To survive in the market, you should conduct a
  SWOT analysis of your idea. Ensure that your idea
  is unique and marketing it can help it survive in
  the Singapore economy.

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3. Funding availability

• Singapore has 117 foreign banks with 6 local
  banks. You also get tax deductions if you are an
  Angel investor. You would be eligible for tax
  benefits if you are Venture Capitalists Funds.
• Regardless of whether you need a third-party
  investment or a paid-up capital, Singapore is the
  right Asian country to start. The Singapore
  government also runs the Startup SG Equity
  Scheme. Under this scheme, the government offers
  to co-invest with selected third-party investors.

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• These options encourage the budding entrepreneurs
  to start their own company in Singapore.
  Additionally, for direct aid, the startups can
  contact Enterprise Singapore for help.

4. Ownership/shareholder details

• The Shareholder Agreement (SA) is an important
  factor to consider within any startup. This
  defines the rights and obligations on the
  shareholders part. While it is not a compulsion
  to have this document, the benefits of holding
  one are innumerable.

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• One of the huge benefits of this is protection
  from the share dilution. If your company issues
  more shares than necessary, your ownership over
  the company is diluted.
• With SA documentation, there is a fair judgment
  towards the investor. The document defines the
  companys goals and direction in the market. This
  kind of information ensures that everyone knows
  whether they should be investors.

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Conclusion

• The basic process of setting up a business in
  Singapore is pretty straightforward. But certain
  aspects of it can seem challenging. Hence, having
  information beforehand can seem helpful. This
  information can help you kickstart your company
  smoothly and effortlessly. if you need any help
  We are the providers of the best Singapore
  Company registration services.

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