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Things to Know Before Outsourcing Accounting Services in Singapore
  • Article, Singapore

Things to Know Before Outsourcing Accounting Services in Singapore

Outsourcing accounting services in Singapore is an essential part of every business. As a business owner, you might feel stressed about handling every aspect of your business. Therefore, it is important for every entrepreneur to delegate their work in the right hands to enhance the performance of the business. In this article, we will give you some tips to ease your task of outsourcing accounting services in Singapore.

Things to Keep in Mind while Outsourcing Accounting Services in Singapore

1. Your Needs
Before establishing your business in Singapore, you must know what your requirements are. The selection of your accounting services will depend upon your business. Like if your business is Goods and Services Tax (GST) registered, accounting will be done accordingly and GST returns have to be filed timely.
 
2. Budget
Budget is always an important criterion before outsourcing the accounting services. You must do a good market research and shortlist a few accounting professionals and compare their prices along with their experience. Go through their websites and check the services they provide. Also, look if they clearly provide the contact details because accounting services require fast response.
 
The Top 25 Places for the Best Bookkeeping in Singapore READ MORE
 
3. Consider If Outsourcing Is a Good Investment
Outsourcing any service in a business thoroughly depends on the mindset of the businessmen and the requirements of his business. When you outsource accounting services, you do pay a good amount to them but along with that, you get the depth of their knowledge and experience. By outsourcing, you can also save yourselves from doing the routine tasks of your business and focus on the core business activities.
 
4. Have Discussions
Before outsourcing the accounting services, you must indulge in direct communication with the service provider. This will help them in better understanding your needs and clearing all your doubts. By having a few rounds of discussions, you will come to know about their professionalism and their competency to serve an entrepreneur like you.
 
5. Be Responsible and Aware
Being an entrepreneur, you may get many referrals of accountants and bookkeepers from your family and friends. They may have suggested you names based on their experience but it is not necessary that they will be able to serve your business needs as well. As a responsible entrepreneur, you must outsource the accounting services only after understanding the performance, history and background of the service provider.
 
6. Identify Their Methodology
Before selecting any accounting service provider, you must identify their methods and tools for accounting and bookkeeping. A good and advanced accounting service provider knows the technological advancements and systems that can be applied for accounting. You must understand how they file returns and analyze the receipts of the business. Evaluate their tools for managing financial records. Also, understand how they would manage the books of your business.
 
7. Align Other Outsourced Services with Your Business
Before outsourcing accounting services in Singapore, you must align your current business with other services of the business. By doing so, the new accountants and bookkeepers will know what services and practices will suit your business.
 
8. Select One Who Provides Services Beyond Meeting Regulatory Requirements
The selection of the accounting service provider must be done prudently. Only that accounting service provider must be selected who goes beyond meeting the statutory and contractual obligations. The service provider must be someone who is involved in your business at every stage and recommends you the ways through which you can improve the business strategies.

The above mentioned tips will help you find the best outsourced accounting service provider in Singapore. IMC Group provides the best incorporation services in Singapore.  We are well known for our expertise and professionalism in providing various other services to businesses like accounting services in Singapore, company secretary services in Singapore, etc. To avail our services and know our quotation, you can contact us by dropping us an email.

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Top Reasons to Set Up a Holding Company in Singapore in 2019
  • Article, Singapore

Top Reasons to Set Up a Holding Company in Singapore in 2019

Company formation in Singapore has many benefits. The strategically located country has been the hub for many business houses in Asia. Singapore is a prime location for trade and business and has a strong emerging economy, because of which many Investors prefer Singapore for setting up their holding company. In this article, we will list down the reasons why you must set up a holding company in Singapore.

Reasons to Set Up a Holding Company in Singapore

  • Economic Growth

The government policies in Singapore have always been in favour of businesses. Government has taken many initiatives to establish and promote start-ups. This has helped Singapore economy to grow at a rapid pace along with achieving economic stability.

  • Tax Rates

Singapore offers the most attractive and competent tax rates to businesses. The marginal tax rates in Singapore is as low as 17%. Furthermore, the effective tax rate can be lowered even more. Therefore, the tax benefits make Singapore the best place to establish your holding company.

  • No Double Taxation

The biggest benefit of setting up business in Singapore is the avoidance of double taxation. Singapore has signed double tax agreements with more than 40 countries across the world. This gives your business in Singapore an edge over global businesses because your business will not have the burden of double taxation.

  • Access to Skilled Workforce

Singapore has a large population of skilled and talented workforce. If your business requires any skills that are not available locally in Singapore then you can easily procure a visa for the talented manpower.

  • Relationship with Other Countries

Relationship with other countries plays a vital role while establishing a business in a country. Singapore has signed investment guarantee agreements with over 30 countries. Such agreements promote inflow of investment in the country and help the businesses in the country to prosper.

  • Ease of Doing Business

As per the rankings by the World Bank, Singapore is ranked among the top 3 economies of the world when it comes to ease of doing business. Singapore has been maintaining this record since the last 12 consecutive years. Moreover, the process of company registration in Singapore is relatively easier. If you are looking for company registration in Singapore, consider a professional firm like IMC Group who can not only assist you with company registration process but also extend support for accounting services in Singapore and taxation services in Singapore.

  • No Tax on Capital Gains

Investors having holding company in Singapore get the benefit of no tax on capital gains. Zero tax on capital gains and lower income tax rates makes Singapore an attractive place for the businesses to establish their holding companies in the country.

  • No Tax on Dividends

Any dividend paid in Singapore on or after January 1, 2008, shall be exempt from tax under the taxation system of the country. To simplify, the shareholders of the company shall not be taxed on the dividend income. Such exemptions are given to the shareholders to attract more investors in the country.

  • Incentives to the Holding Companies

In order to encourage multi-national companies to set up their headquarters in Singapore, the government of Singapore provides headquarter incentives to the holding companies. Other incentives that are available to the holding companies in Singapore include Pioneer Status or Development and Expansion Incentives.

  • Better Quality of Life

Every individual wants to live a good quality of life. Singapore provides excellent facilities and quality of life to the public. This gives a good reason to set up or relocate your businesses to Singapore.

Above mentioned are a few benefits of setting up a holding company in Singapore. For more details, get in touch with IMC Group.

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Is Singapore VCC Going to Change the Game for FDI in India
  • Newsletter, Singapore

Is Singapore VCC Going to Change the Game for FDI in India?

Singapore’s VCC (Variable Capital Company) framework has been a major development for investment fund industry looking for investing in India and also in whole of Asia-Pacific. Especially from India’s point view, the VCC regime can be a game-changer.

Singapore ranks as a significant global hub particularly for the asset management industry, due to its AUM (Assets under Management) shooting up to $2.4 trillion. It has also become one of the countries who are investing the most in India, with its cumulative FDI gong over$73 billion and its portfolio investment crossing $37 billion.

However, most of the funds handled by managers based out of Singapore are pooled or domiciled out of Singapore because of there is no flexible corporate vehicle available. To tackle this, Singapore is launching a corporate vehicle named the Variable Capital Company (VCC). The good news is that the VCC framework is cleared by the Singapore Parliament and would be operational early this year.

The corporate framework

The VCC framework is intended just for fund industry as it’s compulsory to appoint a Singapore-regulated fund manager along with an independent custodian.

A VCC is typically alike a conventional business in terms of a board of directors, share capital with limited liability, and other features. In addition, to aid investors’ entry and exit, the VCC framework offers additional flexibility:

  • It can distribute out of its capital to shareholders in case it makes no profits or has reserves;
  • Its shares are allowed to be redeemed regularly or even bought back without having to seek shareholder approval every time;
  • Its paid-up capital’s value is always considered equivalent to its NAV and its shares should be issued, redeemed and even repurchased at such NAV; and
  • Other than various classes of shares, VCCs are allowed to issue bonds and debentures listed on stock exchanges;


VCCs could be established either as a single standalone fund or it could be an umbrella fund. A standalone fund gets to enjoy all the features of the VCC framework, however, an umbrella fund has an advantage of making two or higher sub-funds where the assets and liabilities are totally segregated, that is, losses of a sub-fund would not impact other sub-fund’s NAV.

The structure of an umbrella fund helps a big fund manager gain through economies of scale as they save operational and other compliance costs connected to establishing multiple corporate vehicles.


The taxation framework

A VCC is treated as a single entity for tax purposes. If it’s an umbrella VCC, the sub-funds are not needed to assume different tax compliance. Also, a VCC should be made eligible to utilize Singapore’s tax treaty network wherever it is taken as a Singapore tax resident who has based the ‘control and management’ in Singapore.

Regarding incentives, a VCC is entitled to apply for all tax exemptions offered to other funds handled by a fund manager based in Singapore. The exempt VCCs would also be entitled for GST remissions thus decreasing the Singapore GST incidence particularly on management fees to a tiny fraction. Fund managers are qualified to request for 10% concession of tax rate in terms of their fees from VCCs.


Re-domiciliation of current overseas funds operating in Singapore

The current offshore funds which have a framework like VCC would be allowed to be re-domiciled in Singapore. In case the overseas fund is not similarly structured as a VCC, in that case, restructuring could be explored before re-domiciliation.

This is likely to provide enhancement to local domiciliation of the investment funds in Singapore.

VCCs in Indian context

India-Singapore tax treaty was recently revised to remove the tax exemption of capital gains particularly on Indian company’s sale of shares. The treaty continues to offer grandfathered exemption especially for cash equity investments that were made till March 31, 2017. It also still exempts the profits from other financial instruments like bonds, derivatives instruments, debentures, etc.

The VCC framework offers an efficient method to deal with so many challenges posed to investment funds. After the framework is successful, fund managers can pool funds in Singapore only. In addition, the VCC would also have an investment manager, administrator and custodian based in Singapore, which will majorly reinforce the commercial substance for investment funds and support the case for treaty entry in this post-BEPS age.

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Government Plans to Take a Larger Chunk of Risk in its Attempt to Support SMEs
  • Newsletter, Singapore

Government Plans to Take a Larger Chunk of Risk in its Attempt to Support SMEs

The forthcoming Singapore Budget of 2019 is set to bring some good news for the SMEs. Yes, the Singapore government is planning to offer more help to their SMEs so that they could gain advantage from the policy assistance schemes and also help the businesses entering the Asean region, as per a report from DBS.

Irvin Seah, who is the DBS senior economist and has also authored the report, was of the view that there are some guidelines and policy measures that look like being “skewed in favour of bigger companies”. An example of this could be the schemes like the SME Working Capital Loan, which is being facilitated through various financial institutions (PFIs) which are participating, but the inclination for these PFIs are titled towards big businesses who have a sounder financial position.

Irvin Seah also mentioned that in spite of the fact that the government provides some risk coverage, the consequence is that small-size enterprises who require more financing assistance might not get the required assistance irrespective of their creative business ideas or product innovation.

The government is also thinking of taking on a larger share of the risk on itself, especially for small-size businesses who are asking for financial aid. This would also bring these assistance schemes within a closer reach, hence making company formation in Singapore easier.

Though this has been done for the Automation Support Package already, additional enhancements in the policy direction favoring smaller businesses can also be applicable to many of the current support schemes.

SMEs that are lower than a specific level of total sales turnover should be additionally provided with further attention in their grant applications; for instance by simplifying the requirements of documentation in the grant application procedure.

Seah was also of the opinion that the policy effectiveness should be sharpened by improving and quickening the grant approval process and lending better support to the trade associations (TACs).

A fast track scheme especially for getting grant approvals can be executed for some specific high-growth industries so as to encourage strengthening of investments in those particular clusters.

In addition, TACs would be given additional support in establishing new overseas offices so as to facilitate the local organizations that are getting into international markets, in a better manner.

Armed with an improved understanding of different types of enterprises and markets, the TACs will be able to pull in their resources and domestic contacts to assist their members in exploring the overseas markets. This can be probably more useful than Enterprise Singapore (ESG) overseas offices which are typically swarming with business-related and other bilateral relationship issues.

Seah was of the opinion that helping the businesses venture abroad, especially to Asean countries, might receive additional momentum in the Budget 2019.

With new trade and international investments expected to be diverted in this region in the coming few years, Singapore would be in a unique position provided its regional hub status, high level of enterprise sophistication and a wide free trade agreement network.

He also said that policy measures taken by the government to offer enhanced support for enterprises in enhancing their capabilities and offerings and in their attempt for internationalization is set to surely bring optimistic results in mid to long-term.

The government is expected to stay on track in its efforts of reformation to groom and prepare the economy for the future times, instead of using fiscal incentives as a counter-cyclical policy tool.

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Top 10 Business Options for Foreigners in Singapore
  • Article, Singapore

Top 10 Business Options for Foreigners in Singapore

Is setting up a business in Singapore in 2019 on your mind? You might be sure about new company formation in Singapore but cannot decide on the best and most viable business ideas. So here it is… We have listed the top ten and most lucrative small enterprise investment opportunities available for foreigners in Singapore.

It’s a well-known fact that Singapore currently tops the charts in the Ease of Doing Business Rank as per the World Bank. This means that accordingly to the World Bank Singapore is the easiest place in the whole world to set up a business or for incorporating a Singapore company. With over 3,000 multinational companies operating here, this data gets proven.

With a highly-evolved economy, Singapore’s market has been ranked as one of the most open, business-friendly and not at all corrupt. The low rates of taxes and high GDP per capita make it a great and most favorable destination for doing business.

So, if you are interested in starting your own business and for new company formation in Singapore, the first step is to do proper research and assess the demand and what customers actually want. You would also need to know about the country’s laws, culture, business trends and the overall economy. Your success will completely depend on where and in which business you invest in.

Top 10 Best Business Opportunities in Singapore

1. Food and Gourmet

Food business is one of the best businesses to set up not only in Singapore but all across the world. There is always a universal need and demand for good food and this The Lion City is also known as a food paradise. With its outdoor food courts, hawker centers, fancy eating joints and buzzing nightlife, this destination appeals to both locals and travelers alike. Though if you are zeroing down on food as your business, you will surely face tough competition. But the key is to be innovative so that you can offer something new. You could opt for untapped markets such as gourmet chocolates or some special cuisine which hasn’t found its way in Singapore.

2. Agriculture

Singapore has very limited area and relies a lot on agro-technology for agricultural production and its consumption. However, there is a huge demand for agricultural products which is larger than the supply considering there are very few players in this sector. So, if you can make it in agriculture, you could reap huge profits in Singapore as long as you’re prepared to spend on the technology needed for enhancing production.

3. Biotechnology

Singapore has been promoting and expanding its biotechnology industry and the government has already spent huge amounts on fund research, infrastructure, further development and to hire the best international scientists. Also, leading drug making companies such as GlaxoSmithKline and Pfizer have also set up their plants in Singapore. Therefore, the opportunities open for investors in this sector are huge. But, do remember that for new company formation in Singapore in this industry, you will need a lot of knowledge and large amounts of capital.

4. Fast foods and snacks

With a fast life, people prefer snacking on the finger and fast foods and snacks. If you are thinking of this segment, you can make lots of money if you try setting up a business to sell snacks like pizza, barbecue, other snack items, etc. This business doesn’t need a lot of capital and no formal educational certifications. So, what are you thinking of? Try it out!

5. Transport

Transportation is one of the biggest necessities that and hence good transport services will always remain in high demand everywhere. You can set up a transport business, but it completely depends on the capital you have. You could consider starting a cab or taxi service for local transportation. If you have bigger capital, you could start transport services that ply inter-city or inter-state.

6. Electronics

The electronics sector is one of the largest in Singapore’s manufacturing industry and accounts for almost 48% of the total industrial output. So, there is huge opportunity to set up the business that sells electronic products; the range you keep again depends on the capital you can invest.

7. Online Marketing

With the boom of e-commerce and businesses wanting to lure more and more customers and sell their products and services through the internet, there is also an ever-expanding demand for professionals and companies offering online marketing services. The services could range from marketing, copywriting to search engine optimization. If you have any skills like copywriting, website designing or developing search engine optimization, or social media marketing, then there are huge opportunities for you and you can think of new company formation in Singapore.

8. Freelance Writing

Blogging is a new way of not only making money online but also expressing your views. Businesses are using blogging to advertise about their products and services and that has escalated the need for creative and also ghostwriters. Quality content is required by all organization and if you are good with words, then, you can make a lot of money while taking up writing assignments.

9. Laundry

If you are looking to establish a small-scale enterprise in Singapore, you could consider laundry as an option. You just need a washing machine and some other equipment such as irons, dryers, etc to start this business.

10. Automobiles, Repair and Spare Parts

A business in automobiles and its spare parts is a very good option in Singapore. However, this business requires a good amount of capital to set up. However, with little capital, you can start selling auto spare parts as that is quite a lucrative market too.

11. Financial services

Because there are many businesses in Singapore, there is high demand for professional financial services like accounting, bookkeeping and auditing. In case you have solid knowledge in any of these services, you could reap huge profits in Singapore by assisting other businesses with your skills.

Here are some more small business or investment opportunities for foreigners in Singapore:

  • Thrift or vintage store
  • Eco-friendly products or organic products or gift packs
  • Home tutoring
  • E-books
  • Hand-crafted jewelry
  • Fitness training
  • Elderly care services
  • Repair services
  • Deep-cleaning services

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Why do Foreign Companies want to Relocate to Singapore?
  • Article, Singapore

Why do Foreign Companies want to Relocate to Singapore?

A gateway to ASEAN, Singapore has one of the lowest corporate tax rates and also boasts of various business-friendly regulations that make it easy for organizations to set up their business and offices in this South-east Asia country.

Data shows that companies are looking for regions that have higher growth potential so that they can meet the demands of their stakeholders. Especially fast-growing Asian economies like China and the South-east Asian countries are a choice of many entrepreneurs because of their large and lucrative markets.

Singapore – A Gateway to ASEAN

So where does Singapore figure in all this? Gaining the fifth rank amongst the top 20 host economies in FDI inflows, Singapore has made its mark as the gateway to ASEAN and is a preferred destination for enterprises of all sectors and sizes to base their office or operations in Asia. Here in this article, we will talk about some of the major driving factor contributing to Singapore’s success in bringing in foreign companies to its shores.

Network of double tax treaties

Singapore is known for its extensive network of double tax treaties or tax agreements (DTAs) with over 80 nations across the globe. The main advantages of a DTA are that double taxes are avoided, there are lower withholding taxes, and there is a preferential tax regime. This enables in minimizing the burden of taxation for a company. Other than this, there is no capital gains and dividends tax, which further makes Singapore a lucrative choice for business investments by company formation in Singapore.

Appealing tax regime

The simple and investor-friendly tax regime is another big advantage. In Singapore, the maximum corporate tax rate on any taxable income is just 17%. There is no tax on capital gains and on dividend income and no withholding tax on post-tax dividends that are paid from Singapore. What’s more? All foreign-sourced income is completely tax exempt if that income has been taxed in a country having a headline tax rate of at least 15%. Then there are no restrictions on foreign ownership and no controls whatsoever on foreign exchange.

Strategic location with superb connectivity

Singapore has is very strategically located at the intersection of the main trade and all the shipping routes of the world, for example, the major sea route connecting India and China. Known as a transportation hub, Singapore is proud to have the award-winning Changi Airport and also boasts of a world-class port infrastructure, which has been awarded the ‘Best Seaport in Asia’ many times. With its telecommunications infrastructure also at a world-class level, this nation has been ranked as one of the top in leveraging information and also communications technologies to improve its country competitiveness by the World Economic Forum. Today, Singapore stands as one of the two Asian countries ranking in the top 10 amongst 139 countries worldwide.

Skilled and multilingual resources

The business environment in this country is very attractive to skilled and multilingual workers who come from across the globe. The fast-moving innovative work environment, along with a pool of local Singapore talent, reinforces Singapore’s reputation as the most productive, flexible and motivated workforce in the region, which has also been proven by the data and rankings in the IMD World Competitiveness Yearbook.

Smart immigration policies

Singapore offers many types of Visa schemes for talented and qualified professionals and entrepreneurs. The government is constantly making efforts to pull in foreign investments and enhance the level of its local workforce by adding top talent from across the globe.

State-of-art infrastructure

One of the most stable and prosperous countries in Asia, Singapore’s stability in terms of politicals, an array of available facilities, public services conveniences, and the cosmopolitan environment makes it an attractive destination for people globally. With its multitude of dining, entertainment, tourist options, best-in-class infrastructure, and many internationally-recognized educational institutions and universities, Singapore offers a high standard of living yet having its friendliness and warmth.

Excellent IP protection regime

A hearty intellectual property (IP) rights regime and most trusted legal system further adds to the Singapore’s list of advantages. The IP policy of the government, which aims at encouraging innovation and growth of business and commerce in Singapore has been recognized by the World Economic Forum’s Global Information Technology Report 2017-2018 as the top Asian regime for the protection of IP. Despite the high international rankings, additional initiatives by the government are underway to improve the country’s IP landscape further and build it as Asia’s IP hub.

Efficient and effective legal system

Singapore’s legal system is well-developed and has successfully maintained its relevance in the existing cultural, commercial and social environment, by taking in the common law and other best practices from evolved legal systems. The country’s legal system has won accolades globally because of its efficiency, integrity, and for being the least bureaucratic in Asia. Companies are not stuck in red tapism or slow operations because of bribery or other issues. Singapore’s commercial legal structure is also known for its fair and impartial ways.

To conclude, Singapore remains an attractive destination for offering various opportunities for business and investment in the Southeast Asian region. So if you require any assistance or professional advice on company formation in Singapore, Visa services in Singapore or Accounting services in Singapore, do get in touch with us and we would be happy to help.

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Hotel Re-Generate: What are the Trends that Impact Hotels
  • Newsletter, Singapore

Hotel Re-Generate: What are the Trends that Impact Hotels

These days it is imperative for hotels globally to move towards tech-enabled processes so that they can survive and do well in a diluted market. Last year data shows that the hotel occupancy rate went up by 0.5% and stood at 75.1% in the United Arab Emirates (UAE). However, the proportion of the average daily rate fell down by 3.8% last year. The global travel scenario has become more competitive with many new entrants, and the increase of online intermediaries. Today, only those hotels will survive, which will be able to foresee the growing needs of the 21st century, digitally native travelers who are on a look out for unique experiences, said a new report published by Grant Thornton UAE.

The report named Hotel Re-Generate: Mega Trends Impacting Hotels was launched during the 14th edition of the Arabian Hotels Investment Conference held at Ras Al Khaimah (RAK), UAE. This report talks about how UAE hotels can find new business opportunities and expand their market in today’s times marred with tech-disruption, ever-changing socio dynamics and preferences of the guests.

A large share of the travel industry goes to online and mobile transactions, especially given the demographics of a particular region where 40% of the population is under 25. Talking about UAE, where mobile phone penetration stands at 228%, it is expected that the launch of the 5G technology will be a game changer in 2018. The organizations that are slacking behind and who aren’t following the digital movement online would have to bear the brunt of loss of the important customer-behaviour based data, which would be the key to making any strategy.

Majority of travelers (about 86%) consider personalized offers very important while deciding when making a purchase. Using smart and latest technologies like artificial intelligence etc to examine the profile of a guest, their previous buying behavior, social media choices etc to design customized offers helps the hotels in driving mass-personalization and also find fresh opportunities for revenue generation. Having the required data along with investing money in the latest technology and tools could be very rewarding for the hoteliers as the revenue increases by as much as 6%.

Hisham Farouk, who is the CEO and Global Board Member at Grant Thornton United Arab Emirates is of the view that in the coming years, hotels will not remain as as just accommodation providers. Today’s travellers expect much more, and the only way to attract them is by offering a holistic set of solutions and alluring packages. Hotels should use cutting edge technology to make sure that every guest experience is personalized and unforgettable.

Do you know that Dubai ranks as the sixth most-visited destination in the whole world? It is also strengthening its position as a regional business hub. The statistics show that Ras Al Khaimah (RAK) is emerging as the nation’s prized possession, due to its hospitality sector, which is expected to further grow at a forecast of occupied room nights of 35.5m annually in 2019. It stands at a 10.2% compound annual growth rate (CAGR) over the next 2 years.

UAE’s market dynamics continue to spur and challenge the hotels, especially due to the investment landscape, simple procedures of doing business, and entrepreneurial skills of people. Because of these market forces, new competitors and solution providers will continue to rise, which would further motivate hoteliers to innovate and do something new. So this is the right time for a new business setup in Dubai. If you need any professional advice or assistance, do get in touch with us.

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How to Transform Family Businesses into an On-Going Legacy
  • Newsletter, Singapore

How to Transform Family Businesses into an On-Going Legacy

Recently, a joint study was conducted by Singapore Chinese Chamber of Commerce & Industry (SCCCI) and PwC and UBS, where about 120 family businesses based in Singapore were studied and surveyed. This study was done to find out how these enterprises were managing transformation in today’s ever-growing business environment. This report named ‘Transforming family businesses’ said that though business transformation was earlier done to be competitive, now it’s even more valid for family-based firms to make their businesses future-enabled.

The changing dynamics do pose many challenges and obstacles, but it also brings with it many opportunities for these businesses to progress, provided they are ready to change and take that risk. Though, many family businesses or enterprises know that there is a need to upgrade and transform their business, they face some challenges in expanding out of the domestic market, accept digitization, or even hiring the next generation.

A Global View

The top three plans for most of the family businesses included expanding to new markets. Over 70% of the family businesses which took part in the survey said that they were planning to expand in other countries or have already started to set up their offices or presence globally.

Especially in Singapore as their market size is very limited and there is a need for local enterprises to look for new markets, revenue streams and customers so that they could remain competitive. But having said that, going into unknown foreign markets could be quite complex. The main challenges faced by these family businesses surveyed includes unfamiliarity with the rules and regulations in that foreign country (20.8%), finding the correct business partner (18.3%) and hiring the right king of talent (16.1%).

To tackle this challenge, these businesses could either leverage their own networks, or try to collaborate with some professional agencies that have experience in doing so.

Coming to terms with the Digital Wave

We are in an age of digital disruption and every family business today needs to re-look at their business models, systems and processes so that they don’t lose out. Though over 85% of family businesses that took the survey said they were open to participating in the digital economy, about 34.7% did not have any concrete plans in this regard. About 36.2% said that finding various ways to transform their business using latest technology was their top-most challenge. About 28% felt that the financial costs involved in digital transformation worried them and 26% said that competitors with first-mover advantages was their top concern.

But it’s important to understand that innovative strategies and digital transformation lays out many new business opportunities.

Bringing professionalism in family businesses

Professionalism is an important element of transformation and it means running the business in a more professional manner. This means bringing in processes and new strategies to improve the value offerings and how attractive the business looks to customers.

It is imperative to also build that mindset so that the business can prepare to drive performance and also eventually deliver value to all its customers and stakeholders. Hence, family businesses need to find areas where they could plug the gaps in skills and decide if they need to hire some reliable professionals who could run their business in the absence of the core team. This way by hiring talent from outside brings objectivity to the company.

Passing the torch

Though it’s a good idea to involve the current generation, it’s also very important to hire professionals from outside to drive and achieve successful transformation. The next-gen is not only more updated and educated, but also more tech-savvy, possesses a global outlook and a capability to lead in today’s digital era.

The business owners should ensure that the most capable person runs the show, even if it is a professional not belonging to the family. About 55.4% of the family businesses who took the survey said that leadership was the most important aspect which the new generation should take over. About 52% felt that the new gen should take over financial management (52.4%) and 50% felt that next gen should handle the emotional intelligence. The seniors in the family businesses should make sure that their children take their company’s credibility to a higher level by sharpening their skills and then bringing their new outlook and expertise back to their family-run business.

The future of all the family businesses depends on how well they collaborate with the younger generation and how they use their capabilities so that they reap the benefits of today’s digital era expand in the market and protect their legacy.

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Guide to Business Startup Schemes and Grants in Singapore
  • Article, Singapore

Guide to Business Startup Schemes and Grants in Singapore

The Singapore government has offered a wide range of startup schemes and grants to promote the growth and expansion of businesses in Singapore. In fact, to get ahead of the fierce competition, the Government of Singapore recently rolled out Startup SG in March 2017. The aim of this launch was to provide an enhanced and innovative business environment to gather fresh startup talent from all the corners of the world. Such measures taken by the government are proving beneficial in propelling the country towards a thriving start-up ecosystem.

Why Does Singapore Appeal to Global Entrepreneurs?

The primary factors that contribute to the flourishing state of Singapore’s microbusiness ecosystem are its political and macroeconomic stability. In addition to these, a strong judicial system, corruption-free bureaucracy, and robust regulatory institutions have provided a thriving business environment in the nation. Other factors include state-of-the-art infrastructure, financing schemes and cash grants by the government, and tax incentives, among others.

Startup SG in Singapore

Startup SG is an umbrella branding that brings together all the support schemes for startups in Singapore. It is basically a launch pad for all the global entrepreneurs that offers them a platform to connect with the global entrepreneurial network and also gain access to the local support initiatives.

The six pillars of support include the following:

  • Startup SG Founder

 This scheme was developed for new entrepreneurs with an innovative business. It provides up to $30,000 by matching $3 to every $1 raised by the entrepreneur. Along with the funding, mentorship and business guidance will also be provided to such entrepreneurs from Singapore-based incubators. This scheme can be applied only through an Accredited Mentor Partner (AMP).

 

  • Startup SG Tech

 The grant offers project funding to local Singapore companies to develop a breakthrough technology. With this grant, such companies will receive funding for POC (Proof-of-Concept) and POV (Proof-of-Viability) projects. POC projects are designed to test the technical and scientific viability of a new technology. POV projects are designed to test the commercial viability of a lab proven technology. POC projects can receive funding up to S$250,000 whereas POV projects can receive up to S$500,000.

  • Startup SG Equity

 Startup SG Equity is an investment fund managed by SPRING Seeds Capital and SGInnovate for funding startups that require higher capital expenditure and take longer to become commercially viable.

The eligibility criteria for the startups include the following:

  • The company must be a private limited company incorporated in Singapore having a paid-up capital of S$50,000 minimum.
  • The company must not be a joint venture or a subsidiary.
  • The company must not have been in existence for more than 5 years.
  • The core activities of the company must be carried out in Singapore.
  • A third party investor ready to invest in the company must be identified by it.
  • The company must have high growth prospects and international scalability.
  • The company must demonstrate that its applications have substantial intellectual content and are highly innovative.

 

  • Startup SG Accelerator

 Startup SG Accelerator provides funding for incubators that assist in developing and mentoring new startups in high growth industries. Some of the sectors in the list of accelerators and incubators include the following:

  • Cybersecurity
  • Smart Logistics
  • FinTech
  • MedTech
  • Robotics
  • Data Analytics
  • Artificial Intelligence
  • Internet of Things

 

  • Startup SG Loan

 These are government-backed loans that are offered through Participating Financial Institutions which can provide startups with the much-needed working capital. Trade financing and equipment/factory financing are also covered by such loans. Startup SG Loans include SME Micro Loans that are applicable for companies with less than 10 employees to support their day-to-day business needs with financing up to S$100,000.

 

  • Startup SG Talent

This pillar includes schemes such as the EntrePass, T-UP and SME Talen Programme (STP) for startups. EntrePass is a work pass scheme that eases the entry and the stay of global entrepreneurs in Singapore so they can contribute their skills to the local skill-sets and make for a more vibrant start-up ecosystem.

If you are looking for company registration in Singapore, get in touch with us. We can assist you with Immigration and Visa services and also offer taxation services once your company has been established.

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Top Business Ideas in Singapore
  • Article, Singapore

Top Business Ideas in Singapore

Are you tired of the daily grind of the 9-5 job routine? Do you wish to become your own boss and run your own business? If yes, Singapore can provide you with ample investment opportunities to start your own business. Singapore holds the second spot among 190 countries in the World Bank’s Ease of Doing Business Rank for 2018. It boasts of a highly developed, business-friendly and trade-oriented market economy. With over 3,000 multinational companies, Singapore is one of the top financial hubs that attract investors from all the corners of the world. We have picked our top ten business ideas that you can consider to start your own business in Singapore.

  1. Farming: There is very little arable land in Singapore, and so, the country exceedingly depends on agro-technology and vertical farming for its agricultural production and consumption. There are very few players in the agricultural market and so you are likely to make huge profits after investing in state-of-the-art technology.

 

  1. Shipping: Singapore’s maritime sector plays a major role in its economy and comprises of over 5000 maritime establishments. Its importance as a maritime centre continues to grow owing to its strategic location along the confluence of major global shipping routes. Additionally, the government of Singapore also offers special incentives to shipping companies to set shop here.

 

  1. Financial Services: Singapore is an international financial hub and is home to corporations from various countries. So, there is a high demand for professional services such as auditing, bookkeeping, and accounting by both indigenous as well as foreign companies.

 

  1. Import and Export/Trading: In 2017, Singapore imported US $327.7 billion worth of goods and exported goods worth US$2 billion. It is one of the top nations to trade with countries such as Hong Kong, China, the United States, and Japan among others. Setting up an import/export business in Singapore would expose you to endless opportunities in the trade market.

 

  1. Biotechnology: The government of Singapore has spent and continues to spend millions of dollars on infrastructure, fund research and development of its biotechnology industry. As of 2016, Singapore ranks second in being the most innovative country in biotechnology providing immense opportunities to new investors.

 

  1. E-Commerce Services: It is estimated that Singaporeans will take in revenues of approximately USD 5.4 billion dollars by the year 2025. This goes on to show how profitable it would be to invest in e-commerce services and set up an online business to cater to the citizens online.

 

  1. Spa Services: The wellness industry in Singapore, or any other country for that matter, will always do well. The target niche of massage services for both men and women has an even better business potential. After all, there will never be a dearth of working professionals wanting to get pampered with luxurious treatments after a long and hectic day at work.

 

  1. Fast Food and Snacks: Food is the universal love that connects us all. Food business does well in all the countries, especially Singapore, which has an exciting and vibrant street food culture. Furthermore, this requires minimal capital and you can start reaping the benefits early on.

 

  1. Electronics: Singapore is quickly emerging as Asia’s centre of manufacturing industry. The electronics industry in the manufacturing sector alone accounted for 48% of the total industrial output. Clearly, there are huge opportunities for electronic companies to create and manage new markets here.

 

  1. Freight and Courier Services: You can start your own transport business in Singapore. Depending on your capital, you can begin with a taxi service to transport within local routes and then expand to inter-city or inter-state transport service. You can also venture into logistics and parcel delivery and enter the freight forwarding industry after getting the required licenses.

If you wish to set up your business in Singapore, get in touch with us as and we will be happy to assist you in your Singapore Company Formation.

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