- Article, India
- March 26, 2019
Often businesses choose to register themselves as a Limited Liability Partnership (LLP) but later wish to convert into a Private Limited Company. The reason for converting an LLP into the private limited company is growth opportunities and infusion of capital. But as per the recent laws, now LLPs cannot convert themselves into a private limited company. Therefore, those companies who want to raise funds in the future, go for private company registration in India and IMC Group assists such companies for hassle-free registration.
Ministry of Corporate Affairs on Conversion of LLP into Private Limited Company
The Ministry of Corporate Affairs states that, “conversion of LLP into private limited company would not be allowed under the LLP Act. However, enabling provisions would be required to be made in the Companies Act for such conversion. Necessary action in this regard would be taken when the Companies Act would be revised.”
Companies Act 2013 on Conversion of LLP into Private Limited Company
“Companies Capable of Being Registered (Section 366):
For the purpose of this Part the “company” includes any partnership firm, limited liability partnership, cooperative society, society or any other business entity formed under any other law for the time being in force which applied for registration under this Part.”
Now let us try to understand why entrepreneurs choose LLP Registration and Private Limited Company Registration.
Reasons for Selecting LLP Registration
- LLP businesses are not required to get their audit done if the turnover is less than Rs. 40 lakhs and capital is less than Rs. 25 lakhs.
- LLPs are exempt from dividend distribution tax.
- The compliances for LLPs are fewer as there is no requirement for a board meeting or annual general meeting.
- In comparison to the private limited company, the fee for incorporation of an LLP is much lower.
- The incorporation of LLP is hassle-free and requires fewer
Reasons for Selecting Private Limited Company Registration
- Equity investors or venture capitalists can invest in a private limited company because private companies have the concept of shareholding. Whereas, there is no such concept of shareholding in case of LLPs.
- NRIs and foreign promoters prefer to invest in the private limited company rather than LLPs because they can invest in private companies through automatic route while Foreign Direct Investment (FDI) in LLPs is through approval route.
From the above points, we can make out that the start-ups which do not intend to raise funds from Angel Investor or Venture Capital firms register themselves as LLP. Whereas, those start-ups which look for funding from investors register themselves as a private limited company. At the moment, the conversion of LLPs into private limited companies is not possible. The only solution that is available for the LLP start-ups is to register a new private limited company which can take over its business. To assist you further in such matters, you can contact IMC Group. We provide services like company formation in India and many business-related services. To know more about our services, all you need to do is drop us an e-mail.
- Article, Singapore
- March 20, 2019
Singapore is becoming a hub for foreign nationals for employment. The country provides immense opportunities to individuals not only to earn money but also to grow as an individual. Owing to this, immigration services in Singapore are in huge demand. IMC Group plays a critical role in providing immigration services in Singapore. In this article, you will learn about the various things that you must know while applying for a Singapore Employment Pass.
Before applying for Singapore Employment Pass one must know a few things for a hassle-free experience.
Things to Know Before Applying for Employment Pass
The Employment of Foreign Manpower Act governs the hiring of foreigners via Employment Pass. Therefore, there are certain rules and regulation which must be fulfilled before employing foreign workers in Singapore.
- The candidates must meet the EP requirements. To know the candidate’s capability, the MOM encourages the usage of Self-Assessment Tool (SAT). If the outcome of the SAT is positive, there are high chances of candidate being selected.
- Firms that wish to hire Employment Pass holders must first give the advertisement for the position in the Singapore Workforce Development Agency’s Jobs Bank as per the Fair Consideration Framework.
Let us now learn about the candidates who are eligible to apply for Singapore Employment Pass.
Eligibility for Singapore Employment Pass
Conditions to apply for Singapore Employment Pass;
- A foreign individual having an employment offer in Singapore can apply for Employment Pass. Here the employer shall make the application on behalf of the foreign individual.
- Companies that are incorporated in Singapore and need to hire employees from overseas can apply for Employment Pass.
- Managing directors or Entrepreneurs who want to relocate their Singapore company can apply for Employment Pass.
To apply for a Singapore Employment Pass;
- The individual must have executive or managerial or any specialized
- The individual must be employed for a fixed monthly salary of at least $ 3,600 or more.
- The individual must have qualification by a recognized university or professional qualification or any specialist skills.
Time Taken to Process Employment Pass Application
- The processing time for manual application is around 5 weeks
- The processing time for online application is around 3 weeks and more
Filing Online Application
Digitalization has eased the process of applying for Singapore EP. The EP online portal assists the employer or the candidate to apply for the EP application. Since Singapore is one of the top countries when it comes to ease of doing business, the online processing time of EP application has reduced drastically. One can apply for the following through the online portal;
- Application for new EP
- Cancellation of EP
- Application for family passes for the EP holders
- Applying for the letter of consent to work for family pass holders
- Renewing any of the EP application
- Monitor the application status
- Appeal against the EP application rejection
Let us now have a look at the documents required for the EP application.
Documents for EP Application
While submitting the EP application, you must submit the photocopies of the following documents;
- Copies of the applicant passport
- Copies of the academic qualification certificates
- Latest information about the company’s profile registered with Singapore’s Accounting and Corporate Regulatory Authority (ACRA)
One must be careful while submitting the documents and ensure that the documents submitted are in English. If not, an English translation copy must be attached.
IMC Group is the leader in providing work visa services in Singapore. Our services cover every aspect of the business right from company formation in Singapore to the services that are essential for running a business. In addition, we have expertise in applying for Singapore Employment Pass and ensure that your application is passed without any hassle. We not only assist in applying for Singapore EP but also help you in appealing on the rejection of an EP application, renewing the EP, canceling an EP and similar services. To avail our services and know our quote, you can drop us an e-mail.
- Article, India
- March 20, 2019
As per the report by NASSCOM, India is the 3rd largest start-up ecosystem in the world. Whenever there is a company registration in India, we term it as business and not start up. To put it in simpler words, any business in India is just a business and not a start-up company. This is because the start-up business is very different from regular business. In this article, we will list out a few points that define start-up companies in India.
Legal Definition of Start-Up in India
A business entity is a start-up for 7 years from the date of its incorporation. However, the eligibility period is 10 years for the biotechnological sector.
Growth
In India, the biggest difference between traditional business and start-up is growth. The traditional business functions on a lesser scale whereas the start-up companies have the capability to grow at a rapid pace. Start-ups have the ability to capture a larger share of the market in a small span of time.
Business Funding
Any type of business requires funding to operate. Traditional business have finacing options such as bank loan or loan against security to fund their business. Whereas, start-ups in India have many options to fund their business like a bank loan, funding by angel investors or venture capitalists in exchange for security, etc. Start-ups easily acquire loan as the investors expect huge returns from their funding and they continuously mentor the start-ups until it’s a success.
Exit Plan
Traditional business and start-up business both have a different exit plan. In case of a traditional business, the entrepreneur can exit the business when he suffers loss or finds an alternative idea of business. Whereas in the case of a start-up, the business does not close when funding is done by a venture capitalist or angel investors. The exit strategy of a start-up in such cases is via merger, IPO, or acquisition by other company.
Working Culture
The working culture in traditional businesses and start-ups are drastically different. The traditional business functions like any other business in India and have normal offices. While the start-up offices are lavish and attractive. The working culture in a start-up is very professional. Furthermore, the start-up companies provide their shares to the employees of the company at lower prices which acts as a big motivation for the workforce.
Unique Selling Proposition
The traditional businesses in India work on pre-defined guidelines and strategy. On the other hand, start-ups sell their products using innovative tools and methods. The start-ups focus on creating such technological tools that attract the customers to purchase its products. Therefore, by using innovation and technology as USP, start-ups try to capture the market.
We hope the above points help you in understanding about the start-ups in India. IMC Group is a professional firm offering services of company registration in India. If you want to register a company or avail any other company related service, just drop us an e-mail to know our quotations.
- Newsletter, U.A.E
- March 18, 2019
The detailed information about the double tax treaty between the UAE and the KSA (the “DTT”) signed on 23 May 2018, has been finally made available.
The verdict for approving the DTT in KSA was published in the official Saudi Gazette and Umm Al-Qura, recently along with the text of the DTT. This publication of the decision done in the official Gazette brings an end to the ratification process for KSA. Both the countries involved have to inform the other about the completion of the process as per their law so as to bring the DTT into force.
The key features of this treaty are as follows:
- Abuse of the treaty: In accordance with the Multilateral Convention to Implement Tax Treaty related procedures to Prevent Base Erosion and Profit Shifting (“MLI”), which both the UAE and the KSA have signed, the DTT says that the treaty access would be denied in case even one of the chief purposes of the arrangement is to get treaty benefits.
- Effective date: The DTT would be entering into force on day one of the second month after the above notifications. The DTT would be effective for all the payments that are made on or post 1 January after the date on which the DTT came into force particularly for withholding tax reasons and for tax years which begin on or post 1 January of the same annual year for the purposes of income tax.
- Persons covered: The DTT is applicable to the residents of the UAE and the KSA. Please note that the DTT is not restricted only to GCC nationals; thus, non-GCC nationals could also take advantage from the DTT.
- Permanent establishment (PE): The DTT applies the general OECD definition of a Permanent Establishment. A PE is a basically a fixed place of a company from where the business is fully or partially carried on. A PE would include a branch, a place of management, an office or a factory; however, it excludes all the activities that are of a preparatory or auxiliary nature.
- Income derived from immovable property: This kind of income could be subject to tax in the nation where the property is actually located.
- Business profits: Business profits are usually taxable in the nation of residence. However, an exception to this is where the company carries on the business in another country via a PE and in that case, the profits of that PE could be taxed in the other nation.
- Dividends: Dividends would be taxed in the source nation but the tax will be limited to a maximum of 5 percent in case the beneficial owner of those dividends is residing in another country.
- Interest: Interest income is allowed to be taxed only in the residence country in case the recipient is the beneficial owner and is also a resident of that country.
- Royalties: Royalties are to be taxed in the source nation but the tax would be limited to 10 percent in case the recipient is the beneficial owner and is also a resident of the other nation.
Capital gains: Any capital gains would be taxed only in the residence country except if one of the exceptions is applicable to provide the taxing rights to the source country.
The DTT is actually a rare agreement between two GCC countries and is set to improve the economic relations and also the bilateral cooperation between the UAE and the KSA. After it comes to effect, the DTT is surely going to have major tax implications. The conclusion of the DTT might have an impact on the existence of a PE and could reduce the withholding tax rate applicable in the KSA. Companies and persons who do cross-border transactions should ideally evaluate their transactions and also corporate structures immediately so as to ensure their eligibility for treaty advantages. As both the KSA and the UAE have signed the MLI, the provisions of the DTT could be amended by the MLI as per the final MLI positions taken up by the UAE and the KSA. As of now, the KSA is in its provisional MLI positions, and has included the DTT as a covered agreement, though the UAE has still not included it as such.
- Newsletter, U.A.E
- March 18, 2019
This step focuses on easing the process of performing business and reducing the expenses for companies.
The Government of Dubai’s Department of Finance (DoF) has announced the second package with some economic growth initiatives which aim to augment the emirate’s current economic incentive package under the government’s response to the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
The directives regarding leadership which were given to the government aimed at simplifying the steps of performing business and bringing down the costs for enterprises by using all the possible resources, so as to aid the economic accomplishments.
Abdulrahman Saleh Al Saleh who is the DoF director-general said that the new initiatives package comes with five initiatives aimed to encourage small and medium-sized businesses and public-private partnership. The work needs to be carried out while complying with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum and execute various economic and financial incentives for reducing the cost of doing business, aiding the registered enterprises in the emirate and also attracting more and more new investments.
The first incentive proposal is to pay all the dues of SMEs who are supplying goods and services government bodies within 30 days rather than 90 days, as long as the payment period is within the 10 days in case of the members of Dubai SME. As per the initiative, the government would be classifying the SMEs who are permitted to get their dues within 30 days. This initiative will be able to provide SMEs with some extra liquidity of Dh1.6 billion per annum.
The second initiative is regarding cutting down the value of primary insurance for all the SMEs to bring them between 1-3 percent range instead of 2-5 percent range, in order to promote them to carry on with supplying to the government agencies. As per this initiative, the minimum primary insurance has been reduced from the original Dh40 million to Dh20 million (which includes 80 percent of SMEs), while the maximum primary insurance was cut down from Dh100 million to Dh60 million (which involves 20 percent of the establishments).
This initiative also aims to offer better liquidity for SMEs, and also ensure bigger opportunities for them to take part in procurement to the government agencies.
The third economic incentive proposal is regarding the final insurance for the performance of SMEs in government projects. This initiative includes cutting down of the final insurance rate or “performance insurance” and slashing it from 10 percent to half or 5 percent on all the supplies. As per this initiative, the Government of Dubai plans to chart out a classification of SMEs who will be entitled for this performance insurance reduction.
This initiative will help to increase the total value of the retrieved final insurance from all the classified companies or businesses, which add up to almost 70 percent of the SMEs, going up to Dh100 million over a shorter period of time.
The fourth initiative aims to allocate 5 percent of government capital projects to the SMEs. Targeted at members of Dubai SME, this initiative will promote business setup in Dubai and various enterprises to expand their business, participate into key projects contracts particularly with the government agencies and also form alliances to contest for government projects.
This move of allocation of 5 percent of government capital projects to the SMEs enables them to get projects which are worth Dh400 million.
The fifth initiative is allocating projects worth Dh1 billion to the PPP, so as to invite the private sector investments, improve the government service quality and finally decrease the burden on the budget.
This initiative will make sure that there is optimal use of Law No.22 of the year 2015 on Public-Private Partnership, and the execution of the projects planned by government agencies are on time and in compliance with the Dubai 2021 Plan.
- Newsletter, Singapore
- March 18, 2019
Singapore is planning to upgrade its trade pacts to get improved access to global markets for its local firms and businesses, and also to cater to new business models as shared by the Minister for Trade and Industry, Chan Chun Sing.
It is also going to expand its free trade agreement (FTAs) network to aid Singapore enterprises enter into more economies, and assist in diversifying the nation’s markets and supply chains.
Mr. Chan also said that they want to expand their FTA network to provide our enterprises a privileged access to more and newer markets in comparison to our competitors. This will not only diversify their markets and supply chains but we would also not completely depend on any one specific market.
He also mentioned that they are also in a process to broaden their reach by planning FTAs with the Pacific Alliance, Eurasian Economic Union, and the Southern Common Market in South America (Mercosur). Especially for long-term, they should take up more opportunities in specifically in the new, emerging markets by acquainting themselves with the regulations and business networks and also the culture in those regions. Mr. Chan also explained how the authorities are planning to prepare the Republic and get ready for the next stage of development.
Other parts of Singapore’s strategy comprise transforming various industries to grab fresh opportunities, enhancing the skill-sets of workers, improving the capabilities of businesses, and enabling faster and effective regulations to get a more pro-business environment, thus empowering enterprises and consumers.
Due to several benefits from the pacts, Singapore’s business with its FTA partners currently totals to 92 percent of its total business or trade in goods and service. Enterprises here also recorded tariff savings of almost $730 million in the year 2016, which went up from $450 million a decade ago, which meant that such savings are a major advantage that is derived from signing FTAs.
Mr. Chan also assured that the ministry would continue to work with the Singapore Business Federation and various trade associations and chambers to assist businesses to get advantage from the FTAs.
During its chairmanship of Asean in 2018, Singapore completed various initiatives to develop the region into a more attractive destination for setting up a business, company formation in Singapore or doing investments.
This also meant having the Asean Single Window, under which now there are five Asean countries who are exchanging their business and trade documents electronically, while the remaining countries would be coming on board in 2019. An Asean agreement regarding e-commerce was also signed, among others.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership in 2018, which was Singapore’s first trade pact with Canada and Mexico and also the European Parliament’s approval of the European Union-Singapore FTA earlier this year came into force.
Singapore’s trade agreements map up to the efforts by the Republic and partners with similar objectives to advance the international rules and regulations and support the rules-based multilateral trading system personified in the World Trade Organisation.
Singapore is currently working actively with like-minded members of WTO, which includes recently giving an e-commerce joint statement to assist in decreasing the cross-border obstacles on this front, while welcoming new associations to push the envelope on digital trade.
Mr Chan also mentioned Singapore’s challenges in his speech, such as the uncertainties of the US-China trade relations and collaborations in the near future and transformation in the international trade patterns and also the production chains in the mid-term.
In the long-term, Singapore has to carefully observe the developments in global taxation, which is going to shape the Republic’s attractiveness as the best business destination in future.
He said that if they can get the fundamentals right, they can be unique and attract more global investors to come to Singapore and create better jobs. These fundamentals should include efficient governance which is based on long-term political stability and effective planning; an international mindset; a competitive edge in terms of innovation and high levels of creativity and standards; and a talented workforce with a focus on regular training and learning.
- Newsletter, Saudi Arabia
- March 18, 2019
Kingdom of Saudi Arabia’s (KSA) government authorities are working towards enhancing the investment environment, which was planned under the National Transformation Plan and Vision 2030. In this regard, the Saudi Arabian General Investment Authority (SAGIA), which is the governing authority dealing with foreign direct investments (FDIs) and has been working hard to develop the foreign investment regime targeting to simplify some of the restrictions put on global investments in the KSA.
According to this, all the shipping agents would be able to function independently with the support of the KSA’s privatization plans. Till some time back, the ship agency services were only allowed to be conducted by a 100 percent owned KSA company or any KSA national. However, after the recent reforms, foreign shipping companies or shipping agents are allowed to decide if they would work with a local investor or not and also have the right to function autonomously as ship agents at Saudi Arabian ports. After the recent letter that was issued in August 2018 by the Saudi Minister of Commerce and Investment, the Minister of Commerce confirmed that now the shipping agency operations would not fall under the purview of the Saudi Agency Law and thus it will not be a prohibited activity for any companies that are non-KSA owned. This has enabled giving foreign investors a shipping agency license.
SAGIA has also confirmed that they have started welcoming all global shipping companies and shipping agents, and there are no specific requirements to perform the shipping agency activities besides the usual requirements for establishing a company in the KSA. This is a positive step for the marine sector and also for the KSA economy as a whole.
The foreign investment license would be valid for a period of five years and could be renewed every year. Investors would also need to get a shipping agency license from the Saudi Ports Authority (Mawani) after the setting up of the company and prior to conducting the activities. Mawani and SAGIA are collaborating to execute this change and to apply the necessary process for regulating the investment of various shipping agencies.
Mawani confirmed that shipping agency the activities would mainly include vessel clearance and also related activities such as booking of cargos, as loading and unloading of cargos, paying port dues, representing the shipping line and also supplying various supplies to ships. However, foreign direct investment companies cannot perform the following services, that is, customs clearance and supplying fuel to ships.
- India, Newsletter
- March 18, 2019
India is going to surpass UK with regards to world’s largest economy rankings as its GDP growth is projected to be 7.6 percent in 2019. Data trends show that US growth is estimated to be temperate from 2.8 percent in 2018 to approximately 2.3 percent in 2019. Labour markets in developed economies are estimated to tighten, thus increasing the wages.
India and France are expected to cross the UK with regards to world’s largest economy ranking this year, pushing it from the fifth to the seventh position in the global ratings, as per the projections. Though the UK and France usually switch places because of similar levels of development and almost equivalent population, India’s spiraling up the rankings is most likely to be stable and lasting now. As per the projections, UK would experience almost 1.6 percent real GDP growth, 1.7 percent for France and 7.6 percent for India in the year 2019.
India is expected to have a healthy growth rate of almost 7.6 percent in FY20, assuming that there are no big headwinds in the world economy like more trade tensions or any supply shocks in oil. The growth will be aided by further realization of efficiency gains that come from the newly-implemented GST and policy momentum predicted in the first year of the new government.
Today, India has become the fastest developing large economy throughout the world, with the gigantic population, very favorable demographics and the huge potential because of the low initial GDP per head. It is assured to continue to go up in the global GDP league ratings in the next few decades and this surely is a good time for company formation in India.
The restrained growth in the UK last year and again in the year 2019 is probable to turn the statistics in France’s favor. When comparing the currencies, the relative strength of the Euro as against the Pound is also an important factor to consider here. The world-wide economy is estimated to slow down this year as G7 countries go back to long-run average growth rates, as per new projections and data.
The lift in growth of many major economies observed between 2016 end and 2018 beginning has now ended. The boost from the fiscal stimulus is estimated to decrease, while higher interest rates could diminish consumer expenditure and a strong dollar is expected to continue dragging on net exports. The projections point out that US growth is going to be moderate from a projected 2.8 percent last year to around 2.3 percent in 2019.
The development in China is also expected to slow down as compared to 2018. Although the Government would try to ensure a minimal slowdown, the effect of US tariffs and the necessity for controlling the debt levels are probable to create a meek deceleration in growth this year.
The labour markets in developed economies are likely to go on tightening with unemployment decreasing even if job creation slows. This will push up wages, but would cause challenges for enterprises planning to fill talent shortages. In 2019, unemployment would fall a little more in the US and Germany, though the rates of job creation in these countries have remained strong.
- Article, Saudi Arabia
- March 16, 2019
The good news is that the time taken for processing a business license in Saudi Arabia is cut down by almost 92 percent in an effort to boost new investments in the Kingdom. In additions, earlier companies had to submit around eight documents to get a license issued, but now they only have to give their financial statements and a certified commercial registration. As per a report, SAGIA would be now licensing projects falling under the new Foreign Investment Act, allowing even 100 percent foreign ownership in some sectors.
But if you are thinking of foreign company registration in Saudi Arabia, there are following three concerns you should take care of:
- Be ready with decent data about the economy of the region. Conduct an in-depth analysis especially in the sector you are aiming to work in. Study the market conditions, competitors and then establish a viable business setup with a proper forecast. Then decide if you will invest on your own or through a bank.
- As per the law, you must have an area partner where the UN agency is holding the bulk interest and also might take the management of the business in their hands. The native partner (company or private) does not contribute to the investment in the start-up. The native partner’s demands are under review in some states currently to promote foreign investments.
- After registering your business, you have to explain to the Ministry of Commerce that you possess considerable cash to start your venture. You have to specify add varies between the states (it’s typically between $10,000 or £6,500 and about $50,000 or £33,500) which is taken as a guarantee for liabilities; however, you can take out cash soon.
As this process can be financially risky, having native data is imperative. We recommend you to consult some experienced professional who could guide you regarding the registration process and save you from several possible risks. Exports and manufacturing sector square measure are especially supported in a big way by the government with regards to the acquiring of land to construct their manufacturing unit. If you set up your business in a trade zone, then it is also offered exemptions from prevalent import and export duties, building/property license fee, industrial and property tax and other restrictions applicable on transferring capital that is invested in the zone.
An option to setting up a new business in Saudi Arabia is to rather shop for a going concern, as that would be quite simpler because in that case, you don’t need to lodge your capital; all you need to do is to agree to a value and then transfer your business’ possession.
Local Chambers of Commerce would suggest you about start-ups and also for square measure as they are proficient at hand-picking sure-shot profitable new entrepreneurs to the region. Contact details for square measure are:
- Council of Saudi Chambers of Commerce and business, KSA – (PO Box 16683, Riyadh 11474)
- Eastern Province Chamber of Commerce, KSA – (PO Box 719, Dammam 31421)
- Federation of GCC Chambers, KSA – (PO Box 2198, Dammam 3145)
- Jeddah Chamber of Commerce and business, KSA – (PO Box 1264, port 21431)
- Riyadh Chamber of Commerce and business, KSA – (PO Box 596, Riyadh 11421)
Arabs are quite skilled at negotiations so we recommend you to be confident about the content of your written agreement. If square measure gaps exist, they could spot it, which can cause you problems. Mostly, the Arabs never say a ‘no’ to a business proposition on the spot; so you must listen carefully and observe well. In case their response is ‘Leave it with me’ or ‘I’ll suppose it’, then there is a chance that the venture’s chances are dim. The probable profits of setting up your own business in Saudi Arabia square measure are good; however, the truth remains that it isn’t meant for you if you are faint-hearted.
Registering a Company and Legal Liabilities
Saudi Arabia’s Company Law can be compared to any in western states. In this, the enterprises are usually operated as Nonpublic Chamber of Commerce, limited liability operations, or several sorts of concern. It is advised to take a native legal advice and steerage for registration process and formalities. If you are a foreigner, you could use a western country or Arab venture business company. After selecting, you need to get the advice of the Arab-British Chamber of Commerce, Geographical Region Association, the DTI, and your particular Embassy’s industrial department.
Western expatriates usually tend to take up senior positions getting top salaries and perks. But workforce from the India or some other countries at times takes up unskilled or semi-skilled and menial jobs and the square measure is paid accordingly. An influential sponsor or business leader could be a wise option to use with administration. The authorities are not hard unless they have a strong reason. You stand a bigger chance in the region if you stay polite and patient.
If you are looking for some professional support in starting your business or accounting services in Saudi Arabia, do contact us, and we will be glad to assist you.
- Article, Singapore
- March 16, 2019
Various economies of the world are facing protectionism and fragmentation due to growing overseas expansion. These days, more and more global firms are eyeing to set up their business overseas.
Even after that, the Singapore companies have a great opportunity in their hands to expand in international markets seeing the increase in consumer spending globally. By doing the right homework, many local Singapore firms can enter into global markets and be a success story.
Entering Global Markets
Singapore companies first need to identify the target markets for their products. Depending on the business’s long term goals, they can go global. The business must understand the new market and know the pricing pattern for the goods to export. The companies must know the consumer tastes and accordingly try to capture the market. By creating a good relationship with global customers, the business can capture the good market share in the long run.
Enter Into Partnership with Local Businesses
Another key to success for Singapore companies while expanding the business in the global markets is entering into a partnership with the local businesses. The local businesses know the customers very well and help in developing a cost-efficient distribution channel. One of the popular ways of entering into the international market along with local partners is through the franchise. The franchise model has been a success in most cases and Singapore’s small and medium enterprises can very well adopt this approach successfully. Singapore companies must know that partnership with local players or taking a franchise will lead to commission cost.
Before entering or partnering with players globally, it is important for the Singapore companies to conduct due diligence. In this segment of the article, we will understand the importance of due diligence.
Importance of Due Diligence
Before the expansion of the Singapore companies, they must conduct due diligence. Due diligence must involve the status of their current financial position, level of competence on going global, ability to survive and future growth prospectus. By familiarising with the target markets, the local Singapore SMEs will know which method of expansion and international market will suit them the best. Also, while entering into a partnership with local business, the Singapore companies must conduct due diligence of the local partners. By doing so they would know their capabilities and ability to survive in the long run. Therefore, by doing all the due diligence rightly, the chances of survival of the Singapore businesses in the international markets would be much higher.
Singapore businesses have the potential to establish themselves as major players in the global market. To help them achieve their objective, IMC Group provides various services to the local businesses. So, if you have a business plan in mind and are wondering how to start a business in Singapore or any other country, we can assist you with our wide range of services including outsourcing of accounting services in Singapore, outsourcing of company secretarial services in Singapore and so on. To avail our services and know our quotation, you just need to drop us an email specifying your requirements.
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