Manage and Grow Business in Singapore

Effectively handling your business operations is as crucial as the initial step of registering your new enterprise, and there are numerous factors to take into account.

This guide covers essential aspects of managing your business, such as setting up a corporate bank account in Singapore, finding office space, hiring staff, and dealing with trademarks and licensing.

Opening a corporate bank account

Once your company is successfully incorporated, the next crucial step is to establish a corporate bank account for handling business transactions and payments.

Banks in Singapore

As a major financial center, Singapore houses a range of both local and international banks. Among them are Oversea-Chinese Banking Corporation (OCBC), Development Bank of Singapore (DBS), United Overseas Bank (UOB), Standard Chartered, Citibank, Commerce International Merchant Bankers Berhad (CIMB) and Maybank, to name a few.

Certain banks impose a setup fee for opening a corporate bank account, and this fee can vary between banks.

In response to growing regulations aimed at combating money laundering and terrorist financing, banks in Singapore implement rigorous ‘know your customer’ (KYC) procedures. It’s important to be aware that changing rules and sanctions from different countries and global authorities could affect both the eligibility and the time required to open a bank account in Singapore.

Singapore account opening requirements

There are numerous choices for opening a corporate bank account in Singapore. Many banks provide features like multi-currency accounts, online banking, trade financing, the ability to transfer funds internationally, and additional services.

Banks generally require that account signatories and the majority of directors be physically present in Singapore to sign the paperwork when opening a corporate bank account. However, some banks might allow the documents to be signed at one of their international branches or in the presence of a Notary Public.

Banks typically require several documents, such as the certificate of incorporation, a board of directors’ resolution, the company business profile, a copy of the passport (or Singapore identity card), and proof of the directors’ residential addresses. It’s important to note that documents pertaining to the ultimate beneficial owners are especially crucial.

Additional documents may be required on a case-by-case basis. Approval for opening a corporate bank account is usually granted, provided the required paperwork is complete and satisfies the bank’s internal due diligence criteria.

Securing office premises

In addition to a bank account, your business will probably need office space to operate effectively. There are several types of office space options you might explore.

Conventional office

To begin with, you might choose to lease a traditional office space from a building landlord. In Singapore, lease agreements typically last between two to three years, although longer leases of up to six years are available for larger spaces. At the end of the lease term, most landlords provide the option to extend the lease for an additional period.

Offices in Singapore typically come with standard fittings. If you wish to customize the office to meet your needs, you can do so according to the landlord’s terms and conditions. In such instances, it might be possible to negotiate a rent-free period to accommodate the renovation.

Serviced office

For businesses looking for a short-term solution, serviced offices or business centers provide professional, fully-equipped office spaces that can be rented immediately. Managed by specialized companies and primarily located in Singapore’s Central Business District (CBD), these offices offer a prestigious address, various suite sizes, and flexible lease terms.

You can take advantage of an individual office suite within a managed facility, which provides access to amenities like reception services, utility rooms, meeting rooms, and advanced IT infrastructure. Rental fees usually cover base rent, utilities, security, and office furniture. Additional costs apply only to optional services based on usage.

Virtual office

Virtual offices provide the benefits of an office experience without needing physical space. A standard virtual office package in Singapore typically includes a corporate business address, dedicated phone and fax numbers, personalized telephone answering, mail handling, and access to meeting rooms as needed.

Virtual offices can address various business needs. For instance, startups in cost-effective locations can use a virtual office to secure a prestigious business address and enhance their corporate image. Similarly, home-based entrepreneurs can benefit from an official address through a virtual office, boosting their credibility and gaining access to meeting rooms for face-to-face meetings.

Home office

If your business is on a smaller scale, you might consider operating from home. Singapore’s Home Office Scheme permits individuals residing in Housing & Development Board (HDB) flats or private residential properties to run small-scale businesses from their homes, provided the business activities are allowed.

To operate a home office, you must either own or be a tenant of the residence, or be authorized to stay there. The office can accommodate no more than two individuals involved in its operation who are not residents of the property.

In Singapore, you need to register with the Housing & Development Board (HDB) or Urban Redevelopment Authority (URA) to use your residence as a home office.

Hiring employees

Depending on your business’s needs, you might require additional staff to support growth and operations. While Singapore, like many countries, promotes the hiring of local employees, it is also an open and inclusive economy that welcomes foreign talent with the appropriate background, experience, and skills.

In Singapore, the employer-employee relationship is governed by their employment contract. Generally, parties can agree on terms as they wish, provided they adhere to the Employment Act.

The Singapore Employment Act

The Employment Act is Singapore’s comprehensive law governing labor and employment matters. It sets out detailed rules on the fundamental terms and conditions of employment, as well as the rights, duties, and obligations of both employers and employees.

Your initial task is to determine if your employees fall under the protection of the Employment Act. If they do, the terms specified in their employment contracts must be at least as favorable as those outlined in the Act.

If your employees are not covered by the Act, you can negotiate the terms and conditions of their employment between the parties involved. Once agreed upon, these terms must be clearly outlined in the employment contract, which will be legally binding for both parties.

The Employment Act covers local and foreign employees, except the following:

Domestic worker
Seafarer
Statutory board employee or civil servant

Employment contracts

An employment contract is a formal agreement between an employee and an employer that outlines the terms and conditions of employment. In Singapore, it is recommended to have a written employment contract. Any failure by either the employee or employer to adhere to the agreed terms constitutes a breach of contract.

Most contracts contain key clauses such as the job title, length of employment, salary, and working hours.

Hiring local employees

For employees who are Singapore citizens or Permanent Residents (PRs), the employer must contribute to the Central Provident Fund (CPF). Both the employer and employee make monthly contributions, with the maximum rates being 17% for the employer and 20% for the employee. These rates may be lower depending on the employee’s age and PR status.

The employer must make the monthly payment, covering both the employer’s and employee’s contributions, by the 14th of the subsequent month. The employee’s share is deducted from their salary. Foreign employees in Singapore are not required to contribute to the CPF.

Hiring foreign employees

According to the Employment Act, employees who are not Singapore citizens or Permanent Residents must hold a valid work pass to work in Singapore. These work passes must be secured before the employee can begin their job. It is important to be aware that some work passes have restrictions or quotas on the number of foreign employees that can be hired.

Although Singapore law does not require trademark registration for use, having a registered trademark can enhance the value of your business. Registering a trademark grants your business ownership rights and helps prevent others from using a similar or identical mark without your permission.

Trademark registration procedure

The Intellectual Property Office of Singapore (IPOS) reviews each trademark application to determine its eligibility for registration. The process can take up to 12 months, depending on factors such as objections or other technical issues.

Below are the steps involved in registering a trademark in Singapore.

A. Identify class of goods and services

Before applying, you must specify the goods and services you wish to trademark. These are categorized into classes 1 through 45 according to the International Classification of Goods and Services (ICGS).

B. Self-search for conflicts

Perform a search for existing trademarks using the IPOS Digital Hub platform to ensure that no prior trademarks are identical or similar to the one you plan to use.

C. File your application

The estimated filing fee for registering a trademark with IPOS is about SG$500 per mark per class. Note that this application fee is non-refundable. Ensure that your application is submitted under the appropriate class. If your business offers a diverse range of goods or services, you may need to file applications in multiple classes.

D. Examine for compliance

After receiving your trademark application, IPOS will review it. If the application does not meet the registration requirements, you will receive an examination report detailing the objections and the particular goods or services involved. You must respond to this report within four months.

E. Publish for opposition purposes

Once accepted, the application will be published in the Trade Marks Journal for opposition. Any interested party can oppose the registration within two months of the publication. The applicant will be informed of any opposition and must provide a counterstatement to address the objections. A decision on the application will be made after reviewing submissions from both parties.

F. Successful registration

If there are no objections or if all objections are resolved in favor of the applicant, the trademark will be registered, and a registration certificate will be issued. Trademark registration is valid for ten years from the application date and can be renewed indefinitely for additional ten-year periods by paying the required renewal fee.

Trademark licence registration

As a trademark owner, you can permit another entity to use your registered trademark by entering into a trademark license agreement. This is usually formalized through a written contract that outlines the scope of the license, as well as the terms and conditions for its use. A standard trademark license agreement may include the following elements:

Scope and terms of usage
Duration
Fees payable
Exclusivity
Permission to sub-licence the trademark

Alternatively, you can apply for a trademark license through the IPOS Digital Hub.

Applying for a business license

Some business activities require a special license to operate. A business license is a permit issued by a Singapore government agency that authorizes you to conduct a particular type of business. For details on the licenses applicable to your business, you can visit the GoBusiness Licensing website.