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It is impossible to meet an entrepreneur who would not want to take a chance at starting a business in Singapore. Singapore has proven itself to be an ideal business place. Whether it be to open a representative office, start a new business, or acquire an existing enterprise, Singapore has the benefits most Asian countries do not have.
But does it mean that running a business here does not have its challenges? No. Even with the state’s initiatives to make dealing easier, as with any other economic environment, starting a business in Singapore has its difficulties. Here are the top challenges of doing business in Singapore.
Property Acquisition
Businesses need the ideal location to connect to their target market and to ease the logistics. And most of the time business owners need to acquire property through buying, renting, or leasing. Generally, getting an ideal business premise in Singapore is difficult because of its demand.
The primary challenge you will face when looking for a property is finding the balance between getting an ideal location and getting it at a low cost. If you have budget constraints, you may have to settle for setting up in a location that is not very accessible to your customers or suppliers.
Furthermore, if you want to construct your own building, you need to acquire the necessary permits first. Most of the time, the authorities will not grant licenses on grounds that the construction will affect the environment.
Taxation
Doing business in Singapore is very favourable with its low tax rates and many tax benefits. However, the country is very strict and rigid in its tax compliance and remittance. Although the taxes are very favourable to businesses, companies must always practice caution to not miss any detail. Mistakes or delays in filing and payment of taxes will charge penalties and interest. It is, therefore, preferable to hire professionals who are familiar with the tax system of Singapore.
Moreover, intentional or unintentional non-filing of taxes can lead to hefty fines or even the closure of your business. Many companies have already experienced suffering heavily due to miscalculation or failure to understand how the tax system works.
Culture
Singapore is home to diverse cultures. People from all over the world have come to work and settle in Singapore. And sometimes this poses few challenges in business. For example, some areas are dominated by Indians which means that you have to consider this when planning on starting a Chinese-themed enterprise. Further, it will also be a challenge to manage a multicultural staff.
Resources
Business resources include talent, financing, and talents. Without proper planning and connections, getting these resources will be very challenging. However, Singapore has plenty of agencies to consolidate all these resources at a fee. For example, if you need capital to start your business, Singapore has an array of financial institutions and benefits you can tap to help you.
Residency
Being a foreign investor can be challenging, not only in Singapore but in any country in the world. Your stay would be limited and the processing for residency is timely and can be quite tiresome.
Thankfully today, more service firms are offering to help foreigners process their PR Singapore. With professionals who understand the system and the processes, you can lessen the time and the stress of applying for permanent residency.
Start a Business, Apply for PR
It may be surprising to hear that there are challenges of doing business in Singapore. Even with all the recognition, Singapore has garnered, entrepreneurs are bound to face business challenges every step of the way.
But these challenges are not without solutions. 3E Accounting Singapore can assist to register a company Singapore. Contact our 3E Accounting expert today to get started on your business in Singapore.
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