Singapore is the most preferred destination for foreign investors and entrepreneurs who are keen on establishing a tech company in the Asia Pacific region. The government has put in place measures to transform the country into the world’s first Smart Nation through the Infocomm Development Authority of Singapore (IDA). The primary goal is to establish an innovation-driven economy with technology startups providing the necessary vibrancy and innovation into the tech ecosystem.
This is the best time to incorporate your tech company in Singapore. However, you need to have a robust strategy to take full advantage of this emerging market. Here are some tips on how to start a company in the tech industry here.
Step 1: Consult a Company Formation Specialist
Consult a company formation specialist to discuss your idea and the goals that you want to achieve after launching the company. The expert will give you insights on the various ways of protecting the intellectual property. He/she will also help you to know the ideal business entity that you should choose during the company registration process.
Step 2: Consult an Incorporation Specialist
A licensed company incorporation specialist in Singapore will guide you on how to file a patent application before the company launches fully. Since one of the most valuable assets to a tech startup is its IP, forgoing this step could compromise your profitability in the future.
Step 3: Network with Industry Leaders
As a new tech company in this emerging market, it is of paramount importance to networking with industry leaders to get a clear understanding of the industry. During the interactions, you will get ideas that you can implement to position the company for success.
Step 4: Negotiate a Licensing Agreement
A license agreement will give your newly incorporated company the right to use its intellectual property commercially as a copyright or patent. On the other hand, an option agreement will give you a time-bound right to obtain this license. Even if the startup is funded by private entities, government, or assisted by an incubation centre, it is imperative to negotiate an option or licensing agreement.
Step 5: Get Funding
Commercializing technology is capital intensive, and so you will need to get funding from external sources. Singapore takes pride in having individual angel investors, venture capitalists, and financial institutions that help start-up get a firm footing in the industry.
Finally, make sure that you hire a company secretary and bookkeeping secretary in Singapore to help you file the necessary paperwork such as annual tax returns. More importantly, set key performance indicators to help you know if the company is headed in the right direction.