What is a coworking space?

A coworking space is a shared workspace where individuals from different organizations and professions work together in a communal setting. Coworking spaces are designed to provide a collaborative and flexible work environment that allows people to work independently or as part of a community.

Hot-desking is a workspace arrangement in which workstations are occupied on an as-need basis by various people at various times. Usually, the goal is to reduce redundant office space in order to maximise space efficiency and lower real estate costs. Hot desks can be used in both coworking areas and private offices. Hot-desking is frequently associated with an increase in employee productivity and cross-disciplinary collaboration.

A practical 10-step guide to starting a business in Singapore

Post on February 28, 2025

Thinking about launching your own business in Singapore? You’re in the right place. With its business-friendly policies, pro-startup ecosystem, strategic location and strong government support, Singapore makes it easier than ever to set up and scale a business. But where do you start?

Before jumping in, take the time to validate your idea – does it solve a real problem? Is there demand in the local market? Who are your competitors? Singapore is a highly competitive business hub, and understanding the market landscape is crucial before diving into registration and operations.

In this guide, workbuddy has put together a practical 10-step guide to walk you through everything from choosing the right business structure and securing funding to navigating regulations. Whether you're launching a tech startup, an e-commerce business, or a boutique consultancy, these steps will help you set up with confidence and hit the ground running.

1. Choose the right business structure

You have a great business idea and a clear target market – great! Once you’ve defined your unique selling proposition (USP) and done your market research, choose the right structure for your business. Your business structure impacts everything from taxes and liability to regulatory obligations. Here’s a quick breakdown of your options:

Sole Proprietorship: Full control but unlimited liability.
Partnership: Shared ownership, shared profits, and shared risks.
Limited Liability Partnership (LLP): Protects personal assets while offering partnership benefits.
Private Limited Company (Pte Ltd): A separate legal entity, ideal for scalability and tax benefits.

Choosing the right structure is crucial, so consider consulting a business advisor to find the best fit.

2. Register your business

Once you’ve decided on a structure, register your business with Accounting and Corporate Regulatory Authority (ACRA) via the BizFile+ portal. Ensure your business name is unique and meets ACRA’s guidelines. The registration process includes reserving your business name, submitting required documents and paying registration fees. Once approved, you’ll receive a Business Profile and Unique Entity Number (UEN), which is your official business identity in Singapore.

3. Open a business bank account

If you’re starting a business in Singapore, setting up a corporate bank account is a key step for managing transactions, receiving payments, and keeping your finances in order. Most major banks, including DBS, OCBC, and UOB, offer business banking solutions tailored to different company structures, whether you’re a local entrepreneur or a foreign-owned entity.

For Singaporeans and local residents, opening a corporate account is typically straightforward. You’ll need your ACRA business registration details (UEN), company constitution, proof of address, and personal identification documents. Some banks may also require in-person verification with company directors and signatories. (Source)

For foreign-owned businesses, requirements may vary. Many banks require at least one locally resident director (Singapore citizen, PR, or EntrePass holder), and some may request additional documents, such as a business plan or proof of overseas incorporation. If you’re based overseas, consider banks that allow remote account opening or explore digital banking alternatives like Aspire or Airwallex for added flexibility.

4. Get the necessary licenses & permits

Some industries (like F&B, healthcare, and education) require specific licenses before you can operate legally. Check out GoBusiness to find out which permits apply to your business and how to apply for them.

5. Register for taxes & CPF

Make sure your business is tax-compliant from day one. Depending on your revenue and business type, you may need to register for:

Goods and Services Tax (GST): If your annual turnover exceeds S$1 million, you must register for GST with the Inland Revenue Authority of Singapore (IRAS). Businesses under this threshold can still opt for voluntary registration to claim input tax credits. (Source)
Central Provident Fund (CPF): If you hire Singaporean or Singapore PR employees, CPF contributions are mandatory. Employers must set up a CPF account and contribute monthly towards their employees’ retirement, healthcare, and housing funds.

All companies incorporated in Singapore are automatically registered with IRAS for corporate tax when they complete their business registration with ACRA. However, there are still key tax obligations to fulfill. Within three months of your financial year-end, you’ll need to file your Estimated Chargeable Income (ECI) – unless your annual revenue is below S$5 million and you have no taxable income. In addition, all companies must submit their annual corporate tax returns by 30 November, depending on their revenue and filing eligibility. (Source)

Staying on top of these deadlines ensures compliance and keeps your business running smoothly. More information on tax and CPF registration can be found on the IRAS website or the CPF Board employer guide.

6. Set up accounting & financial systems

Good financial management starts early. Missing tax or CPF deadlines can result in penalties, so automating payroll and accounting can help ensure compliance. Whether you use accounting software like Xero or QuickBooks or hire a professional, keeping track of cash flow, expenses, and payroll will help you make smarter business decisions and stay compliant with financial regulations.

7. Create a solid business plan

A solid business plan acts as your roadmap, guiding everything from marketing to operations. It should cover:

Your business model (how you’ll make money)
Pricing and revenue projections
Customer acquisition strategies
Operational costs and growth plans

A well-crafted business plan isn’t just for internal guidance – it’s also key if you’re looking for investors or loans.

8. Raise capital & explore funding

The barrier to entry for registering a business in Singapore is low. You can set up a company with just S$1 in paid-up capital, or its equivalent in any currency. (Source) But let’s be real – you’ll need more than that to grow and scale. Fortunately, Singapore has a highly developed funding ecosystem with multiple financing options for startups.

Some common sources include:

Personal savings – Self-funding allows you to maintain full control over your business.
Bank loans – Traditional financing options from financial institutions provide capital without giving up equity.
Peer-to-peer lending – P2P platforms like Funding Societies and Minterest connect startups with private lenders for business financing.
Government grants & schemes – Singapore supports startups through programmes like Startup SG Founder, Enterprise Development Grant (EDG), and Productivity Solutions Grant (PSG).
Angel investors – Early-stage investors who provide funding in exchange for equity, often bringing mentorship and industry connections.
Venture capital (VC) firms – Institutional investors looking for high-growth startups in exchange for larger capital injections and strategic guidance.

Choosing the right funding path depends on your business goals. If you want to retain full control, bootstrapping or loans may be best. If you're scaling fast, VC funding could provide the resources and connections you need, although it means you’ll have to give up a stake in your business.

9. Build your digital presence & marketing strategy

Your online presence is just as important as your physical one – if not more. In a digital-first world, having a strong brand online helps you reach customers, build credibility, and drive sales. Setting up a website and creating social media profiles is just the beginning. To stand out, you’ll need a solid digital marketing strategy that includes SEO, content marketing, and paid ads to attract and engage your audience.

Tip: If you’re new to digital marketing or want to sharpen your skills, Singapore offers subsidised courses to help business owners stay ahead. Programmes like SkillsFuture and IMDA’s digital marketing courses and initiatives provide affordable, hands-on training in areas like SEO, social media marketing, and e-commerce strategies. Whether you’re learning the basics or levelling up your expertise, these resources ensure you have the tools to build a powerful online presence that fuels business growth.

10. Find the right business address

Lastly, your business address isn’t just about location – it impacts your credibility, regulatory requirements and even customer perception. If you’re running a home-based business, you can register it under the Home Office Scheme. For a more professional image, consider a coworking space, serviced office or virtual office.

Coworking spaces like workbuddy provide flexible workspaces that allow you to register your business at a professional address without the cost of a long-term lease. This gives your startup a credible location, access to meeting rooms for client interactions, a collaborative work environment, and even networking opportunities.

Ready to launch? Work smarter with workbuddy

Starting a business is exciting – but you don’t have to do it alone. Whether you need a professional meeting space, a quiet spot to work, or a vibrant community to connect with, workbuddy gives you access to over 50 coworking spaces across Singapore for just $129/month. Skip the expensive office lease and work from anywhere with a flexible plan that suits your startup journey.

Sign up and start your free trial with workbuddy today!

This guide contains the latest information as of 27 February 2025, but business regulations, tax policies and government requirements are subject to change. For the most up-to-date and official information, please refer to the Accounting and Corporate Regulatory Authority (ACRA) for business registration, the Inland Revenue Authority of Singapore (IRAS) for taxation, and the Central Provident Fund (CPF) Board for employer contributions. Always check with the relevant authorities to ensure compliance with the latest regulations.