Setup a virtual office in Singapore
Use Hawksford's office in the heart of Singapore’s central business district as your virtual office and delight your customers with the ease of accessibility and professional support.
For most small to medium-sized companies, part of the process of setting up an office in Singapore is renting one and it can at times be a daunting and all-consuming process. It involves careful calculations, keeping in mind factors such as available financial resources, expected revenues and projected profit margins.
When you have decided to setup a business in Singapore, office rental issues will become important to you at some point. For many customer-facing businesses, the success or failure of the business will hinge partly on the owner’s selectivity and judgment in picking the right location for renting an office. Singapore being at the core of the global business hub translates into all kinds of business enterprises emerging at every possible nook and cranny.
A high rental fee is the price you have to pay for the best spots, but with a little bit of looking around and getting your research right, you may be able to find a suitable rental location for even the tightest of budgets. An initial step in business is to decide where you will live and where your business will be located. You may have the opportunity to relocate to an area where you would really enjoy living and working.
This report explores the different rental options found in Singapore, and gives you some basic information to help you identify the right type of office to rent for your needs.
Depending on location, renting a serviced office in Singapore that accommodates 2-3 employees can typically cost anywhere from S$2000 to S$3000 per month. Other in-house facilities such as meeting rooms and conference rooms come at an additional cost (on “as needed” basis) of S$20 to S$50 per hour.
Renting a conventional office in Singapore usually means renting empty office space that you will need to furnish on your own with furniture, IT infrastructure, utilities, manpower. etc. Finding the right building and arranging a conventional office lease can be a lengthy task, but if your company is on a stable growth-path, the long-term benefits can make it worth the effort especially if your company has more than few employees. Although you may have substantial initial capital costs in undertaking a private office lease, your monthly rental expenses will likely be lower than a serviced office.
Finding the right building and arranging conventional leased office space in Singapore can take some time. The conventional office space in Singapore is is split into government-owned premises and private-owned premises. Although the rents are at government-owned commercial premises are usually lower than the private-owned premises, most of the government-owned commercial buildings are located away from the city-centre.
There is an abundance of private-owned commercial buildings in Singapore and you should be able to locate office space for your rental needs in almost any neighborhood of Singapore including prime locations. The rent of an office in such a building will vary depending on the location and age of the building. If you are interested in renting private-owned premises, it is often prudent to appoint an agent to assist in your search and negotiate the main terms of your lease.
If you wish to explore renting out government-owned premises, you can rent or lease them from Jurong Town Corporation (JTC) of Singapore. JTC offers a wide range of premises based for your office space or factory space needs. Government owned premises can offer you stack-up factories, technopreneur centres, incubators for start-up companies, business parks, hubs for research & development and entrepreneurial activities, warehousing space, industry clusters such as the Jurong Island chemicals hub, wafer fabrication parks, advanced display park, two biomedical parks, logistics hubs for aerospace, chemical, general warehousing industries and even dedicated food factories.
Renting an office in a government-owned premise in Singapore can make a good sense if a centrally located high-profile location is not required for your type of business. For a list of JTC commercial and industrial premises along with indicative rental rates, refer to the Related Links section at the end of this report.
Related Topic: Guide to Office Lease Agreements in Singapore
Virtual office is a service provided by most of the serviced office business centres in Singapore. Virtual office solution offers you an office experience without the physical space. A typical virtual office package in Singapore will provide your business with the use of a corporate business address; dedicated phone/fax numbers, personalized telephone answering; mail handling; and the use of private offices/meetings rooms/secretarial services on an ad-hoc basis.
Using the services of a virtual office solution on a ‘pay as you use’ basis, such as using a personalized answering service or a virtual receptionist might be a cheaper and less risky option to consider before investing in more permanent premise arrangements, and can act as means of experimenting without blowing your budget. Virtual Office is a suitable rental choice for:
If your business does require frequent meetings with your clients, presenting your virtual office as your real physical office is usually not a good idea. Your clients may just walk into the business centre hoping to see your office or meet you only to find out that you don’t have a physical office there. Virtual office rental packages in Singapore can range from S$50-S$200/month depending upon the address location and the range of services offered.
If your business operates on a very small scale, you might want to consider working from home. Typical users of Home Offices include individual entrepreneurs, consultants, real estate agents, lawyers and company employees working from home. Singapore’s Home Office Scheme allows people living in a private or HDB property to conduct small-scale businesses within their homes, as long as their business activities do not fall under the scheme’s negative list.
To run a home office, you must be the owner or tenant of a home, or be authorized to stay in the home. The scheme defines Home Offices as “premises used by its occupants primarily for residential purposes with part or parts of the premises being used by the occupants as an office” and emphasizes that the said premises cannot facilitate more than two persons who are engaged in the operation of the office and who are not residents in those premises.
Registration with Housing & Development Board (for HDB premises) or Urban Redevelopment Authority (for private premises) is required in order to use your living quarters as a home office in Singapore. To ensure businesses do not cause annoyance to other residents, some restrictions are imposed on home offices such as a) you shall not generate smoke, noise or other forms of pollution; b) you cannot have more than 2 employees who don’t live there; c) you cannot display external signboards and advertisements. An example of business activities not allowed in HDB residential premises (i.e. under negative list) include food catering, commercial schools, or maid agencies.
One of the most important considerations for new business startups in Singapore revolves around renting an office. Hasty decisions may cost your business losses while a more informed approach may ensure that the business is up and running for many years to come. Don’t hurry your office rental decision. Determine the right type of office rental option for you first and then identify the right location for renting your Singapore office. There is no such thing as the last good location. Don’t judge entirely on rent. Pay fair rent for an outstanding location. Don’t let the lessor dictate all the lease terms.
Use Hawksford's office in the heart of Singapore’s central business district as your virtual office and delight your customers with the ease of accessibility and professional support.
As your firm grows, Hawksford can provide assistance for your start-up or business's legal, marketing, operational, financial and project management needs.
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