Foreign investors who want to open a company in Singapore have several options. Even if most of them set up new companies because of the financial assistance granted by the state, there are also other forms of doing business in Singapore, such as taking over an existing idea and building around it. This is called franchising and is widely spread all over the world.
Singapore does not have a specific legislation governing franchises, however, the Contract Law provides for the main elements when establishing this type of venture in the city-state and what the franchising contract must contain.
Our Singapore company formation consultants can assist enterprisers who want to start franchise businesses here.
We also invite you to watch our video on how to set up a franchise in Singapore:
There are 3 main elements which determine the structure of a franchise in Singapore:
It should be noted that starting a franchise business implies company registration in Singapore. The most employed structure is the limited liability company, however for smaller businesses, the sole proprietorship is also an option.
Our company formation experts in Singapore can assist with the incorporation of the chosen form.
The role of the franchise agreement is to establish the rights and obligations of the parties involved in the Singapore franchise company.
The franchisor has the following obligations and rights:
The compensation can take the form of royalties or a compensation paid upon certain terms.
The franchisee, in return, has the following obligations:
The holder of a franchise license in Singapore also has the right of using the trademark of the franchise and is entitled to profits from this use.
Starting a franchise business in the Lion City has many benefits which can be explained by our company formation representatives in Singapore, so do not hesitate to contact us.