Essential Guide for Startups: Finding the Perfect Office Solution in Singapore

Starting your business can be very exciting as well as stressful with so many things to settle. Thankfully, coworking spaces and serviced office solutions have made setting up your office easier, helping to diminish your workload. There are various options, from virtual offices and coworking desks to private offices and more, to kickstart your entrepreneurship journey. In this article, we will cover all these solutions in depth.

Why Singapore is Ideal for Startups?

Singapore has become Asia’s Silicon Valley. It is a global technology hub, financial center, and filled with both talent and investment opportunities. The regulations encourage entrepreneurs with the ease of incorporating a business, as well as government grants to help in the initial stages of your startup. All these reasons make Singapore the first choice for many entrepreneurs.

Types of Office Solutions for Startups

Private Offices

Although this is the highest cost option compared to virtual offices or hot desks, if you have secured an investment or are already generating sufficient revenue, this option would be best. Private offices start from $400/pax and for CBD locations usually around $800/pax.

Benefits of having a private office

Private offices give you more credibility, a better reputation, and a sense of security when meeting your stakeholders and clients. It shows that your startup has progressed enough to finance an office in Singapore.

Top private office providers in Singapore

Options are plenty! Some operators include WeWork, JustCo, The Work Project, The Working Capitol, The Hive, Verve Offices, Penguins, O2Work, City Serviced Offices, Corporate Serviced Offices, Compass Offices, and more. Too many options? We are here to help you. At OflexCo, we shortlist the options based on your requirements and save you time and hassle in reaching out to these operators one by one.

Virtual Offices

How virtual offices work?

Virtual Offices are the lowest cost option and this service gives you an established address in a reputable location, mail handling services, a live receptionist, and depending on the package you use, call forwarding, mail forwarding, and more additional services.

Best virtual office services in Singapore

Not all coworking operators provide or focus on virtual offices, but some offerings we recommend are The Executive Centre, Servcorp, Regus, and Centennial Business Suites.

Hot Desks

Flexibility and cost-effectiveness of hot desks

Hot desks are great for startups that need a professional place to work but are on a budget, as this option starts as low as $150/month per person.

Recommended hot desking spaces

Most of the coworking operators mentioned earlier offer hot desk solutions in their common areas on a first-come, first-served basis. Some locations with very large communal areas and hot desks include Spaces Paya Lebar Quarters, WeWork Suntec City, and JustCo Cross Street Exchange.

Key Factors to Consider When Choosing an Office

Location and Accessibility

Central locations or city fringe areas are mostly preferred, as long as there is MRT access which most coworking locations have, ensuring accessibility.

Prime locations for startups

Tanjong Pagar, Raffles Place, and Suntec have always been top choices, with recent surges in demand around City Hall and Beach Road due to recent developments.

Budget and Costs

Budgeting depends on the number of people, location, agreement length, and services required.

Average rental prices in different areas

Coworking options have a large spectrum in terms of prices, where hot desks start at $150 and private offices at $400 in fringe areas. In the CBD and prime locations, prices average $800-$900 with some premium options above $1000.

Hidden costs to watch out for

This is the most important part as most packages are marketed as all-inclusive, whereas some costs like activation fees (if any), exit fees, pay-per-use services for meeting rooms, and printing above the credits given need to be considered. At OflexCo, we inform you of all these details so you don't sign up without being aware of all possible costs.

Legal and Administrative Considerations

Understanding Lease Agreements

Terms and conditions of serviced offices and coworking spaces are mostly similar in Singapore and follow Singapore regulations. They ensure both parties' rights are protected.

Key clauses to look out for

Termination and auto-renewal clauses. Terminations are not possible during the initial term signed, meaning if you sign a 12-month lease, you cannot terminate before this commitment. There is also an automatic renewal, meaning your agreement will be renewed after the initial term, usually 2 or 3 months before your agreement end date. Every operator has a different timeline so this clause is important to be aware of.

Tips for negotiating terms

There is always room for negotiation from the list prices. Office occupancy, recent move-outs, market dynamics, new center openings, and promos all affect the buyer's negotiation power. Don't worry; we negotiate on your behalf, so you can leave this part to us!

Compliance and Permits

Ensuring your office meets regulatory standards

Regulatory general standards like health and safety are taken care of by your office provider. However, there can be additional requirements based on your industry such as MAS-regulated companies or employment agencies.

Final Tips for Startups Searching for Office Space in Singapore

Although finding the right solution for your growing business can sound daunting, we are here to help! With access to over 150 locations in Singapore, we source, shortlist, view, and negotiate the best deal for you so you can focus on what truly matters.