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Opening a Consulting Business in Singapore

Opening a Consulting Business in Singapore

Singapore is one of the most prolific Southeast Asian states which has led to the development and creation of new industries. Among these, the consulting sector has evolved at a fast pace together with a large number of foreign citizens relocating to Singapore who also brought a new vision and who have put their skills to work for the local community. Now, Singapore has one of the most developed consulting industries in the region and continues to attract a great number of specialists.

Those who want to open a consulting business in Singapore are required to comply with various requirements and obtain specific licenses in accordance with the field they operate in. They can rely on our company formation specialists in Singapore for assistance in registering their businesses with the local authorities.

Professional services in Singapore

The high number of foreign investors has led to the creation of numerous consulting agencies in Singapore creating the professional services industry. Sectors like financing and manufacturing have triggered the growth of employment agencies and market development companies in Singapore. Recruitment agencies have helped approximately 50,000 Singapore companies to hire highly-skilled individuals generating close to 9 billion SGD annually to the State budget. Singapore is striving to become an international professional services network which is why foreign entrepreneurs with a good reputation can successfully start a consulting business here. For more information about becoming a consultant in the city-state you can also refer to our specialists in company registration in Singapore.

Steps for opening a consulting business in Singapore in 2024

Consulting a broad term that addresses many sectors of activity, so the first step in setting up such a business is to choose the industry one will activate in based on experience, studies or licenses.

Once this aspect is established, the entrepreneur must consider the following:

  1. the right type of entity under which the business will operate;
  2. the amount necessary for starting the company, but also for its operations;
  3. a carefully crafted business plan and financial projection;
  4. the creation of a budget for marketing purposes.

Setting up a company in Singapore in 2024 in the consulting sector is not complicated, as the city-state is full of persons always looking to enter various ventures, which is what makes it appealing for entrepreneurs with leader potential.

From a legal point of view, it should be noted that to offer consultancy in several sectors of activity, such as the medical, healthcare and financial ones, special licenses are required. In others, such as marketing or various services, these are not necessary, however, this is also where the market abounds in specialists, so one will need to stand out from the competition.

If you want to open a company in Singapore in the consulting niche, our specialists can assist with tailored incorporation procedures. You can also rely on us for guidance in choosing an appropriate business form for your venture. We usually recommend choosing the structure in accordance with the size of the company.

You can watch the video below for more information on how to open a company in Singapore as a consulting business:

Suitable structures for setting up a Singapore consulting business

The first step a foreign entrepreneur must take if he or she wants to open a company in Singapore and operate as a consultant is to select an appropriate business form. The two most common types of companies that can be employed for a consulting business are the sole proprietorship and the private limited liability company.

An investor who decides to set up a Singapore consulting company as a sole trader should consider:

  • this business form can only be used by a single person completing the activities in his or her own name;
  • the owner will have full responsibility for the consulting business’ debt and other obligations;
  • the setup procedure of a sole proprietorship is quite simple and is completed in a few days;
  • the business will not be able to service a large number of clients, which can lead to expansion by changing the business form.

Foreign investors can also open the consulting company under the form of a partnership in Singapore. This way, a local partner could ease the entrance on the market of the foreign partner.

The most suitable type of company for starting a consulting business in Singapore is the private limited liability company. This offers a higher degree of protection to the owner. Also, compared to the sole proprietorship, a limited liability company can serve a greater number of clients.

Those who want to open a company in Singapore and need guidance can rely on our local consultants who can explain the benefits of each structure which can be used for a consulting business.

It is also important to advertise the services offered by the consulting company in order to attract clients. A website could be a good investment in this sense.

Registering a consulting business in Singapore

There are no special requirements for setting up a consulting company in Singapore. Foreign citizens are only required to have a residence visa in order to open a company in Singapore. One must follow the requirements of the Company Act and appoint Singapore experts in company formation services for the registration procedure to have the consulting business registered. The main steps for consulting company registration in Singapore are:

Our specialists in company formation in Singapore can draft the consulting company’s Memorandum and Articles of Association. They can also handle the entire incorporation procedure and can help you open a bank account in Singapore for your new company.

Types of consulting companies in Singapore in 2024

There are various industries in which consulting companies can operate, as Singapore is known as one of the most innovative cities in the world. Among the industries in which a consulting company can operate we can mention the following:

  • the financial industry, which is a great opportunity for accountants and financial advisors;
  • the IT industry, which covers a wide area of other sub-sectors, such as e-commerce;
  • traditional and digital marketing which are quite popular all over the world at the moment;
  • business management which is covered by the Business Advisors and Consultants Council.

In order to become a management consultant, a local or foreign owner of a consulting company can enroll with the Council.

One of the most popular types of consulting businesses in Singapore at the moment is the financial technology company which can offer guidance to those interested in investing in cryptocurrencies.

Our Singapore company formation agents can offer more information about the requirements related to setting up a consulting business in one of the sectors mentioned above. We can also help you open a company in the cryptocurrency field in Singapore.

Licenses for consulting companies in Singapore

Those who want to set up a company in Singapore in order to operate in the consulting field should know that from a licensing point of view they must apply for specific permits with the authorities representing the industry they want to operate in. For example, an accountant must register with the Institute of Singapore Chartered Accountants.

It is possible for a foreigner to obtain their degree in their home country and have it recognized with the Singapore authorities in order to practice here. Then, they can enroll with the Business Advisors and Consultants Council.

We are at your service if you are interested in setting up a subsidiary in Singapore.

Becoming a practicing management consultant in Singapore

Foreign citizens qualified as consultants in other countries can become management consultants in Singapore. All they must do is submit the following documents with the Singapore Business Advisors and Consultants Council:

  • an application form;
  • copies of their CVs;
  • copies of their passports;
  • copies after their diplomas and other qualification certificates.

Additionally, they will be required to prepare a project. They will also be requested to pay a fee. Business consulting certificates have a two-year validity period in Singapore.

How much money does it take to set up a consulting business?

From a financial point of view, there are two aspects to consider: the minimum share capital imposed under the law and the actual amount of money needed to support the business.

From a legal perspective, small businesses are not subject to minimum share capital requirements under the Singapore legislation (this is the case of sole proprietorships, partnerships and private companies). However, when it comes to business planning, the owner will need to set a budget that encompasses the operations and other financial needs in the company.

The budget for opening a consulting company in Singapore must be considered from the beginning and must be established in accordance with profit projections, plus a reserve fund.

Our Singapore company formation specialists can offer more information on how to set a budget for starting any type of business in the city-state.

Market visibility and its importance for a Singapore consulting business

Market visibility has two components: the first one is the physical one which implies having a suitable location for meetings with potential clients, and the second one covers the online presence, as nowadays, a website and social media presence is one of the most powerful tools to raise awareness for a business.

It is worth noting that creating a website and presenting your services in a professional manner will enable you to increase your market visibility. If you are interested in expanding your business, you can consider registering a subsidiary in Singapore.

Keep investing in your education

One of the most important aspects of running a consulting business is to always be informed on market specifics by investing a continuous education. Even if you cannot comprehend all the novelty that appears in the niche you operate, the ones that interest you the most, you are good at, or your clients are interested in are a good starting point. So, when you decide to set up a consulting company in Singapore, make sure you have a deep understanding of market trends and how you can be relevant in an ever-changing business environment.

Create your Singapore company as a startup

One of the useful tips you can use when setting up a consulting business is to register it as a startup. This does not come with additional requirements, however, it can attract important benefits such as easiness in obtaining funding and even governmental support, considering that Singapore is one of the greatest startup hubs in Southeast Asia.

The Singapore government has even created an agency, Startup SG, meant to promote the Singapore startup community and to help it increase its visibility to business incubators and accelerators and for founders of such businesses to find support for their development.

According to the agency, at the moment:

  • there are 3,423 operational startups in Singapore;
  • they benefit from the support of 625 investors;
  • Singapore also has 199 business incubators and accelerators.

If you want to create a consulting company in Singapore in 2024 and want to register it as a startup, our company registration advisors are at your service with tailored advice and support in setting up such a venture.

Who can offer consulting services in Singapore?

From an educational background, consulting is an industry made of specialists in specific fields, but also of people with certain skills and oratory abilities. This is why, when setting up a company in Singapore in this sector, it is important to know in which category you fit. This will help you create your business plan.

In 2024, some of the most sought consulting advice refers to crypto investments. This is why, if you have knowledge or experience in this field, setting up a business can be quite rewarding.

Other consulting services can refer to business management and tax planning. These are usually provided by accountants.

If you need help in order to open a company in Singapore as a consulting business you can contact our local experts in company formation. Our specialists in company registration in Singapore are at your disposal with complete services no matter the type of business you plan on setting up in the city-state.