Opening a business in another country requires solving a number of issues, among which is the rent of office space. Making the necessary documentation, leasing agreement has its own characteristics, the knowledge of which will save you from mistakes and delays in the process of business formation. Before renting offices in Singapore, we advise you to readcarefully all the legal aspects and nuances of choice.
You can acquire knowledge in the matter of drawing up a leasing agreement or a tenancy agreement in two ways: contact your real estate agent for help or look for the right room yourself.
In the case of the second option — be prepared to spend time viewing:
● newspapers;
● announcements of various headings by topic;
● sites with real estate offers.
This process can be delayed and requires a lot of effort.
The optimal solution to find a suitable office in Singapore for a long-term lease is to use the services of an agent. The commission is paid to him by the owner of the area, and you will not need to spend extra.
Before signing a tenancy agreement or lease agreement, weigh your options. In addition to the monthly payment for theproperty, you must pay other bills: electricity, office cleaning services, telecommunications, and real estate insurance.
The terms of the agreement in this country have a number of differences from those adopted by us. The contract is made for 2-3 years, long-term — for 5-6 years. After this period, the lease of the propertyis extended at a price that is current at the time of the preparation of the new agreement.
The total price includes:
● rental amount of the total area;
● Goods and Service Tax. Its rate is 7% (applies to owners of GST payers);
● service invoices or service charges. Their sum is from 0.75 S $ to 1.20 S $. These include air-conditioning services, repairs, security, management fees, logistics.
The amount of service in most cases is stipulated with the amendment that during the term of the agreement it can be changed.
The security deposit for rent in Singapore is refundable and makes payment for 3 months. The amount for the area is made after the paperwork.
The list of necessary documents to remove real estate country:
1. The intention of renting theproperty.
2. Letter of offer from the owner. It specifies the amount that must be paid after the conclusion of the contract, the start of use of the propertyor the operation of the agreement, depends on which item entered into force in the first place.
At the end of the rental period, the entire amount of the security deposit is returned. If the tenant has violated the terms of the agreement, the owner has the right to deduct expenses from this amount.
In some cases, there is a deposit for renovation. It is refundable and assumes an amount for damages if you decide to carry out reconstruction, planning or zoning in the office.
Expenses for registration of the contract, stamp duty, and others are paid by both parties by prior agreement.
Payment of stamp duty is carried out:
● in the period up to 14 days from the date of signing the contract, provided that it was concluded in Singapore;
● In the period up to 30 days from the date of receipt of the agreement in Singapore, if the signing took place outside it.
The authorities strictly monitor the stamping of the necessary stamps. In case of non-compliance with these terms, stamp duty can increase up to 0.4% of the rental amount for the entire period of the agreement.
Utility costs and office maintenance in Singapore are borne by the tenant. The owner is responsible for the maintenance of the common areas.
Rent a parking lot can be included in the total amount and range from 100 to 300 S $ for propertieslocated in the Central Business District;
In Singapore, tenants are subject to the policy of insurance against the death or injury of people during activities in the office.Furniture and elements of the room are subject to insurance.
In the case of restructuring the office or equipping it with the parts you need, in agreement with the owner, the period from 2 weeks to 3 months will be allocated, for which you do not need to pay rent. At this time, all the necessary work. Their cost can range from 40-60 S $ and over 100 S $. The amount depends on the complexity, volume and work requirements. Any changes to the premises should be negotiated with the property owner.
The process of negotiation and the signing of an agreement consists of several stages:
Letter of Intent or LOI. It consists of a short list of questions to the owner of the propertythat suits you. This document should show the seriousness of intentions and interest in a long-term lease.
After checking your company and its capital, if you satisfy the conditions of both parties, you will be sent a letter of the lease offer along with the contract. A signed copy is given to the owner and is accompanied by a non-refundable fee.
The lease often does not require careful legal verification, but you can optionally use the services of a specialist. After signing the agreement, you must pay stamp duty.
When all the formalities are met, you can safely move to a new office in Singapore and conduct business in the country.