Tech Startup Registration in Singapore- Here is All You Need to Know
The best way of executing a promising tech business idea is to opt for a tech startup registration in Singapore. You should seriously consider it, as a Singapore company incorporation enables you to protect your innovative tech ideas through strict IP laws.
Tech Companies in Singapore
Tech companies use Singapore, a population of 5.45 million, as a test-bed to prove their new technology products or services. They also try to implement new ways of marketing existing technology-based products or services before being taken to the global audience.
Though the industry is still grappling with COVID 19 interruption, tech-savvy companies and entrepreneurs are trying to leverage opportunities. And they have a solid reason to be proactive. In 2022, the economic output of the technology industry is expected to cross $5.3 trillion. To sum up, this is the right time for your startup registration in Singapore.
Startup SG Initiative
If you have a strong tech business idea, it will maximise your chances of a successful startup exit. As it happens, technology-based business ideas are easy on overhead costs. It gives you a chance to start small and expand as and when necessary. Here in Singapore, you will get all the support a tech startup needs.
Singaporean authorities are keen on startups and have established a robust ecosystem to promote them. They want to make it competitive through branding, funding and attracting innovative entrepreneurs. Tech startups schemes are grouped under the Startup SG initiative.
After the company incorporation, you can use Startup SG Tech grants to support the Proof of Concept (POC) & Proof of Value (POV) stages. You can apply for a grant depending on your startup’s stages of development.
If you take a realistic view of the startup landscape, you will find that there are hundreds of failed ones of every successful startup exit. The statistics involved imply that you need to have a solid tech business idea for your startup and a commitment to make it succeed. Before going any further, try to invest as much time as possible to perfect it. There are a few key tactics that can help you improve your chances. They are as follows:
Brainstorm Your Tech Product or Service
Make sure that your tech-based product or service can solve problems for your target audience. Several techies make a blunder during the product development stage. They develop a tech-based solution and then try to find customers for it. Most of them invariably get stuck because there are no customers.
Experts call such an approach as. “Putting the cart before the horse!”
The million-dollar question is, “Are you doing it?” Understand that customers are never interested in your product. They want to solve their problem. Whoever solves it gets the business. Solving such questions is the way to develop a product or service that your target audience will benefit from and will accept.
Invest in Detailed Market Research & Surveys
If you want to be thorough about your product development, you need to conduct deep market research and surveys. They will tell you what the market will respond to.
Try to find out:
- Who will be your target audience?
- What are the exact pains and problems they are trying to solve?
- What existing product or service they are using to solve their problems at this moment?
- Are they satisfied with the results?
The insights revealed by your market research and survey will tell you:
- Whether your product solves pains and problems as it is?
- Whether it needs any value addition before you can take it to your customers?
- How much time will you require to upgrade it? How will it disturb your schedule?
- Who are your competitors? What are their strong and weak points? And, how your product stands up to theirs?
- How to outsmart your competitors and outperform their products?
- Do you want to be associated with it and sell it in its new form?
- How to price your product?
- Whether your business strategy is still effective? What does the cash flow analysis say?
- Do you need to update your strategy based on the new estimated cost of products sold, expenses, revenue and profit? Will it help in consolidating your tech startup’ financial position?
Business Structure for Your Tech Startup Registration
After arriving at the product or service that your target audience will embrace wholeheartedly and making necessary changes to your business strategy, it is time for tech startup registration.
You can use one of the existing business structures for the purpose:
- Private Limited Company (Pte Ltd)
- Limited Liability Partnership
- Limited Partnership
- Sole Proprietorship
Most entrepreneurs register a private limited company in Singapore. It is dynamic and scalable. It also limits your liability to your share capital in it. As per the experts, you should register a sole proprietorship for a business having no or almost no risk. You should go by your business needs. You need to consider:
- How much share capital do you want to invest in your new tech startup?
- Are you considering taking a business loan from lenders?
- Is it a risky or risk-free business?
- Or, Do you want to limit your liability?
- Are you a sole founder or a group of founders behind the new startup registration?
- What role do you want to play in your startup?
Company Incorporation Services in Singapore
If you have doubts about the business structure to choose, you can discuss it with an agent or a provider of company incorporation services in Singapore. Find a registered filing agent like SBS Consulting. These agents can legally communicate with the Accounting and Corporate Regulatory Authority (ACRA), the Company Registrar of Singapore. They can also submit your incorporation documents to ACRA and pay the necessary fees.
Choose the Right Infrastructure
The experts say that a new business should watch its expenses and keep them for revenue-generating resources. Still, you will need to invest in employees, IT hardware and systems, departments and tools or software.
Try to automate your processes as much as possible because it will lead to streamlined workflow. You may also need to invest in a specific type of infrastructure (employees, software, Etc) to develop and deliver your product or services to your target audience in the best fashion.
- The platforms that work for the other leading companies may not be best for you to market your solutions. Evaluate your options before committing your resources
- Building a business website is a necessary step to ensure your online presence. It will perform as the most reliable channel for you and your customers to be in touch with you
- Pay attention to the design of the website. Make sure that the interfaces are easy to navigate and the visitors can easily find resources and perform intended actions on it
- Evaluate the use of chatbots to automate and enhance the customer experience. It will enable your customers to quickly put their queries to you
Keep Your Books from Day One
Singapore companies must update their books regularly. It is a part of their statutory compliance. However, on the other hand, updated data gives owners and managers deep insights into the financial status of their business. Understanding it enables them to make optimum use of resources, manage cash flow and chart the future of their company.
SBS Consulting Pte Ltd is a reliable company incorporation services provider in Singapore. We are a registered filing agent and can assist in your tech startup registration. Usually, ACRA takes only 1-3 days to process the application for a startup registration. Contact us at +65-6536 0036 or email us at firstname.lastname@example.org to know more about our affordable incorporation packages.