Title: Key Legal Documents Every Startup In Singapore Should Consider
1(No Transcript)
2Key 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.
3Key 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.
4Key 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
5Key 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
6Key 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.
7Key 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.
8Key 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
9Key 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.
10Key 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.
11Key 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.
12Key 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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