In this blog post, we'll walk you through the main sources of finance for private limited companies and offer some tips on how to raise start-up capital, depending on your chosen industry.

How Much Money Do You Need to Start a Business in Singapore?

In order to incorporate a company in Singapore, the minimum amount of paid-up capital required is S$1. Paid-up capital refers to the amount of money that has been invested into the company by its shareholders and it serves as the company's initial source of funds.

In addition to registering your business, you will also need an Entrepreneur Pass (EntrePass) or Employment Pass (EP), depending on your specific situation. The minimum required paid-up capital for EntrePass holders, who are usually high-profile entrepreneurs and innovators, is S$50,000. On the other hand, there is no minimum paid-up capital requirement for EP holders.

With these passes, you can work and remain in Singapore while running your own business. These passes serve as proof that immigration regulations are being observed and respect local laws related with the formation of businesses in Singapore. A little paperwork makes it easy for entrepreneurs to start doing business in Singapore without having to set aside large amounts of money for start-up costs

What Funding Options are Available for Singapore Start-ups?

There are two main sources of finance for private limited companies—share capital and loans. Share capital refers to the money that is raised by selling shares in the company to investors. Loans, on the other hand, are borrowed funds that must be repaid with interest. In general, start-ups tend to rely more heavily on share capital because it is easier to obtain than loans and does not put the company in debt.

So, where can you find investors? The most common sources of funding for start-ups in Singapore are:

• Traditional Funding
• Angel Investors
• Venture Capitalist Firms

One option is to approach family and friends for investment. Another option is to look for angel investors and, no, we don't mean asking the heavens for some cash! Angel investors are individuals who are willing to invest their own personal wealth into early-stage businesses in exchange for an equity stake in the company. You can also try approaching venture capitalist firms. VCs are firms that pool together money from multiple investors (often large institutional investors) and invest it into high-growth businesses in exchange for equity stakes.

Some industries will require more start-up capital than others. For example, if you're planning on starting a restaurant, you'll need enough money to cover rent, renovations, equipment, furniture, inventory, marketing, and staff salaries—all before you even open your doors! On the other hand, if you're starting an internet-based business, your overhead costs will be much lower since you won't need to worry about things like rent and inventory.

The key is to conduct market research so that you have a realistic understanding of how much money you'll need to get your business up and running.

Where Else Can You Get Help with Setting Up Your Singapore Business?

If you’re already losing your breath just going through all the administrative requirements for getting your business up and running, don’t worry! You’re not alone. Starting a business can be a big step outside your comfort zone if you’re a first-time entrepreneur. Thankfully there are government agencies like Enterprise Singapore that provide support to businesses through programmes like Startup SG.

Here are some additional things to keep in mind when you're looking for funding:

• Have a well-written business plan.
  Investors will be more likely to invest in your company if you have a clear and detailed plan that outlines your goals, objectives, marketing strategy, and financial projections.

• Research the best sources of funding for your industry.
  Not all investors are willing to invest in every type of industry, so make sure you do your research before approaching potential investors.

• Be prepared to negotiate.
  You'll need to present investors with an attractive proposal that makes them want to invest in your venture. Don't forget that they are taking a risk on you—so be prepared to discuss equity ownership, exit strategies.

Regardless of the positive economic landscape and government support in the country, the process of getting your Singapore business off the ground can still be a hassle, especially if you're stuck doing all the work by yourself. Luckily, Singapore is also home to many corporate service providers like ATHR, who are ready to help you with everything from company registration to opening a corporate bank account and applying for work visas (if necessary).

Jumpstart Your Entrepreneur Journey Like a Boss

For more tips on what you need to know to start growing your venture, check out our other beginner-friendly small business guides. If you’re already buzzing with money-making ideas and are ready to take the plunge, head over to our website for more information on how we can help get your small business up and running in no time!