There is no denying that e-commerce is gigantic. The likes of Amazon, eBay, Walmart have already bamboozled the world with their accomplishments and made massive names for themselves. Although the competition is fierce, that does not stop aspiring entrepreneurs to get themselves in this fruitful pool. So, if you are amongst those people who want to know how to start an e-commerce company in Singapore, you have come to the right place.
This guide talks about all the steps that are required to be followed in order to start an e-commerce company in Singapore.
These are the step to start an e-commerce company in Singapore.
Step1: Research and Gather Information
Perhaps the most imperative step. The research and data gathering will give you an idea about who your target audience is, if there is a market for it or not, who your competition is, etc.
The research must answer the following questions
Question 1: What’s your niche?
Question 2: Who are your clients/customers?
Question 3: Where will you get the products(raw material) from?
Question 4: Where are you going to get the funding from?
Question 5: Who are the big fish in the sea?
Once every one of those questions is answered, it is for you to have the blueprint of how you will go about it. This will give you a bird’s eye view of your business and get your creative juices flowing, thereby making you an idea generating machine for your business.
Step 2: Find a way to fund your business
This is the reason why you want to start your e-commerce business, or any business for that matter, in Singapore.
The Government of Singapore is so keen on making sure that the economy stays stable and doesn’t get wayward, hence they often come up with several schemes that could aid entrepreneurs. Everyone in Singapore is building something in this day and age.
Here are some of the ways for you to go fund your startup.
1. Business Loans
The first thing that comes to mind when starting a business is capital and in order to get the capital, a loan (or multiple loans). Whilst it seems as though the goo-to way, it can, however, bring a myriad of risks. If things did not go according to plan, not only would you lose your dream business but also get in a lot of debt.
So think carefully before applying for a loan as the last you want is to put yourself in hot water.
This is probably the smoothest way to go about it, as this method does not require you to repay the principal amount in its monetary form.
An angel investor is someone who has a high net worth and can provide financial support to startups or entrepreneurs. They can be anyone- a family member, friend, a friend of a friend for that matter. Usually, they do not ask you to repay as they are looking to helo entrepreneurs and not quite interested in the viability of the business.
(i) Venture Capitalists
A venture capitalist is someone that invests in businesses that have high growth potential for the equtiy stake. They are often called opposite of angel investors
3. Funding by the Government
The government of Singapore has been quite enterprising when it comes to investing in new businesses and has come up with several schemes and initiatives.
Some of them are down below
1. ACE Startups
2. Capability Development Grant
3. Early-Stage Venture Funding
4. Productivity and Innovation Credit (PIC)
5. Financial Sector Technology and Innovation (FSTI) Scheme
6. Technology Enterprise Commercialization Scheme (TECS)
7. ComCare Enterprise Fund
Step 3: Right Business Form
Anyone (individual) can register their businesses in Singapore as long as it falls under the following forms.
Someone considers a Pte Ltd the best option for anyone to incorporate a business in Singapore as it eliminates a ton of expenses, but don’t take our word for it, analyze and choose the right option that fits best your business.
As for Corporates, they can go for:
Step 4: Incorporation
It is absolutely imperative for you to incorporate your business in Singapore if you want Perpetual existence, Tax flexibility or sustainability for a long period of time.
Here is a quick overview of what you need to incorporate a company in Singapore as basic requirements
A Company Director (could be multiple)
Paid-up capital: Min S$ 1.
A registered local address
Incorporating a company in Singapore or anywhere for that matter can get a tad technical and exigent. We, at Fideserv, with our excellent and highly professional team of experts can help you achieve that.
If you have any questions, feel free to reach out to us
You can read more about incorporating a company in Singapore by clicking here