4th June: My Bad Day And Hopefully A Brand New Start

[Raiders]

Today is one of the darkest period in my life. After being with the company for 5 years, it was time for me to moved on. In the past, there were chances to stike it out on my own when some of my colleagues left and started their own businesses. However, I stayed put due to my loyalty to the company.

As some of you might have heard me say before, Im helping to manage one of the department in my company. The unfortunate thing is, my boss decided to merge the department and hand over the reins to the other manager.

I do not see it as a bad thing. perhaps it is the right time to strike out on my own. Basically, I can only start small with a 4 men operation. 2 full time telesales, 1 part time salesman on full time commission and myself who can do both telemarketing and sales. Therefore I kept my costing low.

I need some advice here from brothers who have founded their businesses on their own before. Please advise if my steps are correct.


1. Register with ACRA (I already register as a sole proprietor a few months ago. Will sole proprietorship be ok or must I be register it under Pte Ltd?

2. Step 2 should be opening a company bank account. Can I just do it with the ACRA letter?

3. How do I go about paying my employee's CPF?

4. GST matter. Im charging my customers net charges inclusive of GST. Therefore, do I need to submit the GST?

5. Are there any other legal matters that I missed out?

Thank you in advance.

 

[erection2015]

i cant help you on this....but i can say that i wish you all the best in your new venture. You have incoming PM.

 

[hokkien]

Good luck bro raiders

 

[drifter]

all the best to you bro...i think this is the chance for you to become your own boss . you have stay in comfort zone for too long already .

 

[Fishypie]

No.1 and foremost, whether if you going to run a company as a soLe-proprietorship, or as a Pte Ltd; your 1st
set of FY01 account have to be properLy done by an auditor..
FaiLing which you may Land yourseLf into a Lot of queries from IRAS, which can be quite mentaLLy taxing..

 

[po2wq]

...

dun waste moni on pte ltd la ... if u scared as sole proprietor, go 4 llp lor ...

u sure u can charge gst? ... dat oni applies if ur coyz sales exceed $1m woh! ...

kip ur a/c properly ...

 

[Raiders]

No.1 and foremost, whether if you going to run a company as a soLe-proprietorship, or as a Pte Ltd; your 1st
set of FY01 account have to be properLy done by an auditor..
FaiLing which you may Land yourseLf into a Lot of queries from IRAS, which can be quite mentaLLy taxing..

I am lucky that I have an auditor friend working in RWS. He should be able to help me part time since my accounts will be very straight forward. Thanks fishy.

 

[Raiders]

dun waste moni on pte ltd la ... if u scared as sole proprietor, go 4 llp lor ...

u sure u can charge gst? ... dat oni applies if ur coyz sales exceed $1m woh! ...

kip ur a/c properly ...

Sole proprietorship to me is ok. The reason is, my business buy goods on cash term and the goods are damn cheap. Basically, its like buying item X from wholesaler and reselling to customers in corporate setting on a COD basis. So I wont have much debts.

About the GST thing, my small business means I do not have to pay GST to goverment right?

 

[Narong Wongwan]

Lesson learnt...Loyalty to company counts for nothing.
All the best

 

[Fishypie]

I am lucky that I have an auditor friend working in RWS. He should be able to help me part time since my accounts will be very straight forward. Thanks fishy.

Seems Like you are going into Big time ?..
Anyway, that was my 1st Lesson Learned going into private; after spending 6 years at a Stat Board..

 

[Cestbon]

Today is one of the darkest period in my life. After being with the company for 5 years, it was time for me to moved on. In the past, there were chances to stike it out on my own when some of my colleagues left and started their own businesses. However, I stayed put due to my loyalty to the company.

As some of you might have heard me say before, Im helping to manage one of the department in my company. The unfortunate thing is, my boss decided to merge the department and hand over the reins to the other manager.

I do not see it as a bad thing. perhaps it is the right time to strike out on my own. Basically, I can only start small with a 4 men operation. 2 full time telesales, 1 part time salesman on full time commission and myself who can do both telemarketing and sales. Therefore I kept my costing low.

I need some advice here from brothers who have founded their businesses on their own before. Please advise if my steps are correct.


1. Register with ACRA (I already register as a sole proprietor a few months ago. Will sole proprietorship be ok or must I be register it under Pte Ltd?

2. Step 2 should be opening a company bank account. Can I just do it with the ACRA letter?

3. How do I go about paying my employee's CPF?

4. GST matter. Im charging my customers net charges inclusive of GST. Therefore, do I need to submit the GST?

5. Are there any other legal matters that I missed out?

Thank you in advance.

1. Sole proprietor/Pte Ltd is OK as long the customer except. Best using Pte Ltd.
2. Yes. ACRA letter will be fine. For Pte Ltd need company memorandum letter( u can DIY)
3. Pay CPF just go to CPF website very clear cut and detail/can go to CPF branch to meet officer at the counter.
4. If charge GST U need to register GST account if not U will be in trouble. If revenue less than $1m need not to register GST. Register GST u will have more accounting work.
5. You can ask a consultant to do it all for u for less than $500 fee.

Good luck! Hope u SUCCESS.

 

[chonburifc]

Lesson learnt...Loyalty to company counts for nothing.
All the best

Otherwise known as 忠心耿耿，死路一条。

 

[Raiders]

Lesson learnt...Loyalty to company counts for nothing.
All the best

Thanks brother.

Seems Like you are going into Big time ?..
Anyway, that was my 1st Lesson Learned going into private; after spending 6 years at a Stat Board..

Not big time. The start up is actually quite low capital. I am lucky that I know the trade very well and I was given a chance to set up the Sydney branch and manage the Singapore one also. I even know how to fulfil all the roles within the organization.

Below is a very basic outline of cost involved. Do let me know if I missed out anything important.

Rental: 1+1 month deposit = $2600(inclusive of GST and utilities and internet, fully fitted with furniture also)

Agent Fee: $1300

Goods: $300 (thats how fucking cheap the goods are)

Computer: $800. I might save on it by bring my old netbook there)

Pantry Items like air-pot, biscuits: less than $100

Singtel lines activation, subscription and everything telco related: $$1000. Each line I counted is about $200 to set up. I just need 3 line. But I provision more just in case.

If you take away the costing for buying a new computer, the whole setup cost is about $5300 only.


Did I miss out any important STARTUP cost?

 

[Raiders]

1. Sole proprietor/Pte Ltd is OK as long the customer except. Best using Pte Ltd.
2. Yes. ACRA letter will be fine. For Pte Ltd need company memorandum letter( u can DIY)
3. Pay CPF just go to CPF website very clear cut and detail/can go to CPF branch to meet officer at the counter.
4. If charge GST U need to register GST account if not U will be in trouble. If revenue less than $1m need not to register GST. Register GST u will have more accounting work.
5. You can ask a consultant to do it all for u for less than $500 fee.

Good luck! Hope u SUCCESS.

Thanks brother. This is very useful.

 

[rectmobile]

Bro Raider, all the best to your business.

 

[Raiders]

Bro Raider, all the best to your business.

Thanks brother. Just a small startup. Everything starts from small. Its the first step that is the most difficult.

 

[toolanliao]

Agent Fee: $1300

agent fee is half a month only for 1 year lease. don't get cheated.

must be a profitable business, otherwise for $300 goods, just wonder how many times you have to turn to cover rental and your salary.

 

[rectmobile]

Thanks brother. Just a small startup. Everything starts from small. Its the first step that is the most difficult.

Actually that is the most fun part, you get to learn and understand many things. A few years of doing this, you will be ready for bigger things.

 

[Cestbon]

Thanks brother. Just a small startup. Everything starts from small. Its the first step that is the most difficult.

Yes. Set up is the most difficult and to stable for next few year.
That why gov have ZERO tax on 1st $100k profit and next $200k tax at 50% discount for Pte Ltd for 1st 3 year of company register.
So if u think can get good profit register Pte Ltd. Tax will be lower.

 

[Scrooball (clone)]

Good luck raiders. Don't spend too much time banging PRC whores and focus on building your business