Things You Should Consider Before Starting a Tech Startup in Singapore

With its business-friendly environment, robust tech ecosystem, and government support, Singapore is an ideal destination for tech entrepreneurs. However, before embarking on your startup journey, there are essential factors you should consider to ensure a successful launch and sustained growth.

Why Singapore?

Singapore’s strategic advantages make it an attractive hub for tech startups. The government’s Smart Nation Initiative focuses on digitalising industries, fostering tech ecosystems, and driving the growth of a digital economy. Here are some key reasons why Singapore is an excellent place to launch your tech venture:

1. Accelerating Economic Growth: Singapore’s commitment to digitalisation creates opportunities for tech companies to thrive and contribute to the nation’s economic growth.
2. Robust Tech Ecosystem: Singapore boasts a vibrant tech ecosystem, offering networking opportunities and collaboration with government agencies, industry players, and investors.
3. Global Connectivity: The country’s Free Trade agreements with the EU and Trans-Pacific provide a gateway to international markets.
4. Low Tax Environment: Singapore’s flat corporate tax rate of 17% and tax exemptions for startups make it tax-efficient for businesses.

Steps to Launching Your Tech Startups

Before diving into your tech startup venture in Singapore, these core considerations can help you navigate the unique aspects of the local market:

1. Patent your innovation

Consult a company incorporation service to explore strategies for safeguarding your intellectual property (IP). The Singapore government policies actively promote competition, and strong Intellectual Property protection ensures that new companies are safeguarded.

2. Secure Funding

Explore various avenues for funding, including government schemes, venture capital, and angel investors. Programs like Startup SG Equity provide opportunities for co-investment with the government.

3. Ownership and Shareholding Details

Don’t overlook the importance of a shareholders’ agreement, especially if there are multiple shareholders. This agreement defines relationships, rights, and obligations, safeguarding interests and preventing disputes.

4. Create a Detailed Business Plan

Develop a comprehensive business plan that outlines your product, target market, growth forecasts, and competitive analysis.

5. Incubation Centres and Accelerators 

Consider joining incubation programs like those offered by Enterprise Singapore or exploring local accelerators for support and mentorship.

6. Register Your Company

Either visit the ACRA website to register your company, or outsource your company registration in Singapore to a professional company incorporation firm like Counto.

Singapore Government Programs and Accelerators for Tech Startups

• Accelerator Programs: Participate in accelerator programs run by IDA and Infocomm Investments Pte Ltd (IIPL) for mentorship and funding opportunities.
• Startup SG Network: Explore an extensive directory encompassing all the participants within Singapore’s tech startup ecosystem, comprising startups, incubators, accelerators, and investors.
• Startup SG Equity scheme: The government will:(i) Collaborate with independent, certified third-party investors to jointly invest in eligible startups; and (ii) Allocate investments to chosen venture capital firms, which will subsequently invest in eligible startups utilising a fund-of-funds strategy.

Using an incorporation service as an extension of your team