Key Legal Documents Every Startup In Singapore Should Consider (1)

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Key Legal Documents Every Startup Should Consider
for their Business in Singapore
Tax Planning While Being In Singapore

• There are 100s of documents every new and
  existing business should keep well-documented for
  commencing, operating, and expanding their firm
  in Singapore. However, it is challenging to
  remember each of them and save multiple links or
  images to store the information.
• This topic will simplify your task by walking you
  through all key legal documents you must consider
  for business formation in Singapore, raising
  funding, and commencement of online business.
• Note You can save this as it contains
  comprehensive information in one place, and you
  can refer to it whenever you want to obtain any
  details.

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Key Legal Documents Every Startup Should Consider
for their Business in Singapore
Tax Planning While Being In Singapore
Necessary Legal Documents for Business Formation

• Let us first walk you through the necessary legal
  documents you must consider for Business
  Formation in Singapore. Before that, you must
  decide the business structure you want for your
  organization.
• For instance, a sole proprietorship is ideal if
  you wish single ownership, authority, and
  individual supervising the whole business. A
  partnership firm is suitable if you want to
  involve partners (2-20). Company incorporation is
  your correct path if you have more than 20
  partners.
• You can determine the right business structure
  depending on the size and scale of the
  organization you want to incorporate. Sole
  proprietor and partnership setup and
  administration costs are relatively lower than a
  company.

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Key Legal Documents Every Startup Should Consider
for their Business in Singapore
Tax Planning While Being In Singapore
Tax Planning While Being In Singapore

• However, the partnership has the added advantage
  of risk sharing amongst partners, whereas in the
  former, the owner has to bear all losses. Both
  have less regulatory compliance compared to a
  company.
• Based on your chosen business structure type, the
  following are the essential legal documents you
  will be required
• Shareholders agreement for companies specifying
  their stake, capital structure, dividends
  percentage, board composition, and other relevant
  information
• Partnerships agreement for a partnership,
  specifying their respective roles,
  responsibilities, authority, profit and risk
  sharing, assets and liabilities, debt, and other
  details

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Key Legal Documents Every Startup Should Consider
for their Business in Singapore

• Note It is wiser to have an agreement in the
  above two structures to avoid conflict of
  interest and mention dispute resolution methods.
• No legal documents are required for a sole
  proprietorship firm. You can set up one by
  selecting a business name not taken by another
  business, filling out the application form, and
  submitting it with the needed documents.

Salient Legal Documents for Your Business Funding

• Businesses cant rely solely on internal funding
  to operate and grow. It is important to
  borrow/raise funds externally. The following are
  the salient legal documents required for funding
  your business for capital inflow management and
  protecting the companys interest

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Key Legal Documents Every Startup Should Consider
for their Business in Singapore
Tax Planning While Being In Singapore

• Commercial Loan Agreement
• While borrowing funds through a financial
  institution or bank, it is vital to establish a
  formal commercial loan agreement outlining the
  details, monthly installments, and loan terms to
  ensure transparency and sound clarity.
• Promissory Note
• Compared to a Commercial Loan Agreement, it is a
  simple written and signed document specifying an
  unconditional promise made by a borrower to pay a
  certain amount as an installment to the lender.

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Key Legal Documents Every Startup Should Consider
for their Business in Singapore
Tax Planning While Being In Singapore

• To summarize, it contains terms of loans and
  repayment, amount borrowed, tenure, and
  installments. The primary difference between a
  promissory note and a commercial loan agreement
  is that the former is a formal IOU document
  generally borrowed from friends, family members,
  or acquaintances.

Term Sheet

• If you are raising and obtaining funding from
  private/angel investors like Venture Capitalists,
  it is vital to establish a term sheet outlining
  the salient commercial terms on which you have
  agreed with investors to invest in your business.

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Key Legal Documents Every Startup Should Consider
for their Business in Singapore
Tax Planning While Being In Singapore

• It functions as a well-documented guide and can
  be amended/revised if changes are made in
  original terms. A term sheet facilitates as an
  intermediator for negotiations and resolving
  issues.
• Refer to our blog, How to Raise Funding for
  starting a New Business in Singapore, for your
  reference.

Essential Legal Documents for Commencing Online
Business

• It is crucial to protect your business websites
  online presence in the modern-day world of
  identity theft and cybercrime. Hence, we
  recommend keeping the following essential legal
  documents for online business

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Key Legal Documents Every Startup Should Consider
for their Business in Singapore
Tax Planning While Being In Singapore

• Websites Privacy Policy
• It is mandatory to have a separate privacy policy
  section on your website outlining how you will
  handle the information provided by the visitors
  and customers. It should also specify steps taken
  by your business for protecting data, such as SSL
  certificates and other security practices, to
  give 100 assurance to visitors and clients that
  their personal data and sensitive information
  shared with your business is secured.
• Websites Terms of Use
• Another necessary step is mentioning your
  business websites terms of use through an
  individual page defining rules and policies for
  legal relationships between the website owner
  (you) and visitors. These rules state the rights
  granted to the website visitor, specifying their
  scope, disclaimers to limit users liability,
  business IPR, and other vital information.

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Key Legal Documents Every Startup Should Consider
for their Business in Singapore

• NDA with website third-party vendors
• And lastly, you must establish NDAs with
  third-party website vendors hired for website
  development to protect proprietary information.
  An NDA ensures that this legally binding contract
  will keep sensitive information, knowledge, and
  materials confidential between provider and
  recipient.
• The vendor undertakes an oath through this NDA to
  not disclose provided information publicly or to
  a publication. This information contains business
  plans and strategies, passwords, client and
  customer databases, and other critical data.
• Refer to our blog, How to Start an Online
  Business in Singapore in 7 Easy Steps? for your
  reference.

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Key Legal Documents Every Startup Should Consider
for their Business in Singapore
Tax Planning While Being In Singapore
Conclusion

• After reading this, you will have firm
  clarification regarding the salient legal
  documents necessary to start a Singapore
  business. We recommend saving this as it will be
  beneficial while commencing business. However, if
  you have any questions regarding any document,
  form, certificate, or license, feel free
  to contact us.
• At Bestar Services, we provide comprehensive Compa
  ny Incorporation Services to all scales and sizes
  of organizations in Singapore. Whether you are a
  start-up or an existing firm looking for guidance
  about essential business legal documents to keep
  handy, our Business Advisory Consultants will
  assist you.

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Key Legal Documents Every Startup Should Consider
for their Business in Singapore
Tax Planning While Being In Singapore

• They have expertise in helping individuals start
  their businesses in Singapore and knowledge of
  all legal documents and certifications required.
  You will get proper guidance to ensure you dont
  miss out on a single aspect.
• Contact us for a consultation with our Singapore
  Business Incorporation Consultants by calling us
  at 65 62994730 or emailing admin_at_bestar.asia
• Refer to our blog, Essential Must-Have
  Certificates for Company Incorporation in
  Singapore, for your reference.

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