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A how-to guide for self-employed freelancers in Singapore

Dr Biz • Jan 06, 2021

The number of freelancers in Singapore is growing, with the Ministry of Manpower reporting a total of 211,000 registered freelancers in 2019, up from 210,800 in 2018 and representing close to 9% of the country’s total workforce. This growth underlines a global trend toward more flexible working, with both companies and workers choosing freelancers and freelancing as a way to make efficient use of both time and money.

The Covid-19 pandemic has likely accelerated this growth, with new figures due to be released in late January expected to show a spike in the number of freelancers as companies have been more cautious on long-term hiring. This has had both a positive and negative impact: while helping to generate more work for freelancers in Singapore, many have been forced to accept lower than usual fees.

Nonetheless, freelancing is a potentially compelling opportunity which, if navigated successfully, can lead to a rewarding career and a more favourable work-life balance. Below, we set out a few hints and tips to help get you thinking about whether freelancing might be for you, as well as get you started on the road to a new life as a freelancer in Singapore.

Be clear on your offering and target market

While this might seem a given, many freelancers don’t start-out with a clear idea of the services they are offering and/or the type of clients they would like to work with. While it is good to be flexible and open to offers as a freelancer, it will likely benefit you to have a firm notion of the type of work you can and are willing to do that is aimed at the type of employer you would like to work for. This will ensure you pursue and attract the right line of work.

Importantly, this will also help you to market yourself and your work in the right way, and through the right channels. If, for example, you are a graphic designer with a background in creative marketing campaigns, you will likely be looking for work in very different places to a freelance swimming instructor! Think about the keywords people would use to search for your services, and work from there.

Set up a website and market yourself

Starting out as a freelancer can be a laborious process, with innumerable platforms and social media channels laid out before a newcomer to complete. The most important of all of these, though, is a website where you can describe who you are, what you do and perhaps include a portfolio of your work. Unless you are a highly experienced web developer, it is likely best to start with a simple site, such as those offered by Weebly or Wix, which have ready to go-templates.

If you don’t already have a LinkedIn page then consider setting one of those up too, directing visitors to your flashy new website. After this you can look to the innumerable freelancer platforms that are now available, including Upwork, Freelancer, People Per Hour, and Singapore-specific Cult Jobs for creative freelancers, as well as the Singapore government’s own My Careers Future. Whether it’s your website, LinkedIn profile or on-site profile, though, remember to use those all important keywords to make sure potential clients can find you. Also give a thought to where you are physically going to work: co-working spaces like those offered by Dr Biz client Work Buddy are great environments for freelancers, allowing for greater focus and abundant networking opportunities.

Set a freelance rate and a budget

Perhaps even trickier than setting-up your online presence is establishing how much you will charge for your services! Money can be a notoriously tricky talking point and so it is best to establish a range of price points that work for you first. You can begin by looking at your expenses and expenditures, establish how much you need to earn per month to meet them, then divide that by how many hours per month you are willing to work.

To make sure you are not underselling yourself, also take a look at the competition. This is fairly easy on freelancer platforms, but you can also explore job sites and the websites of colleagues or people you know in your industry to see what the average rate is. As well as making sure you are charging the right rate, this will also ensure you are not low-balling too much, which can have a negative impact on the whole industry.

Freelance business licenses and taxes

Last but not least, make sure that you have any permit that you need to freelance in Singapore and understand how and when to pay taxes. Importantly, you can only freelance in Singapore if you are a citizen or permanent resident: foreigners can only work in Singapore with an Employment Pass, S-Pass, Entrepass or Work Permit, or if they open a company.

If you can freelance legally, most industries do not require you to have a business license, however you will need one if you plan to drive for a ride-sharing service, run a real estate company or open a food stall. Visit the Land Transport Authority, Council of Estate Agents and the National Environmental Agency, respectively.

As for taxes, freelancers in Singapore are considered self-employed by the Inland Revenue Authority of Singapore (IRAS). This means that a number of expenses are tax deductible - great news! You will then pay tax on a sliding scale of between 2% and 22% depending on your tax residency status and how much you earn. For more on taxes feel free to send us a message: there is nothing we don’t know!

At Dr Biz, we provide tailored and comprehensive solutions for our client's business needs. From incorporation to accountancy, tax and payroll, to professional advisory services, we help businesses in Singapore assess potential risks and become more cost effective and efficient.

To find out more, please feel free to contact us.

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