FIM Plan Final

8/12/2019 FIM Plan Final

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Financial International Management

Project

Business Development Plan

Theme: Taking an existing Indian business to a foreign

country

Topic: Corporate Yoga

Submitted By:

Section A - Group 7

Group Members:

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Acknowledgement

We are highly indebted to Venkatesan Sir for his guidance and constant supervision

as well as for providing necessary information regarding the project supporting us

for completing the project. We would like to express gratitude towards Sir for his

kind co-operation and encouragement which was invaluable for helping us tide

through difficult times.

We would like to thank the Indian Institute of Foreign Trade (IIFT), for providing

us a platform to communicate and express our ideas. Including the subject of

Fundamentals of International Management in the curriculum gave a huge impetus

to our growth and managerial capabilities.

Also, this project topic nurtured the budding entrepreneurial dreams, allowing us

to explore avenues such as setting up of a business and its overseas expansion.

Planning, strategizing, controlling and decision making and their importance in the

functioning of an organization were understood.

Our thanks and appreciations also go to our colleagues who helped in developing

the project and willingly helped each other out with their abilities, thus

emphasizing the importance of collective working and group dynamics.

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1. Executive Summary

1.1.Why?

1.2.Objectives

1.3.Vision

1.4.Mission

2. Company Summary

2.1.Existing Business

2.2.Start-up/Expansion Plan

2.2.1. Company location

2.2.2. PESTLE Analysis

2.2.3. Entry mode

3. Strategic Analysis

3.1.SWOT Analysis

3.2.Porters Five Forces Analysis

4. Market Research

4.1.Market Opportunities/Trends

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4.2.Marketing Mix: 4P Analysis

4.3.Market Segmentation and Positioning

4.4.Competitive Analysis

5. Financial Plan

5.1.Office expense

5.2.Marketing expense

5.3.Pricing strategy, break-even

6. Implementation Summary

6.1.Milestones/Timeline

6.2.Sales forecast

6.3. Marketing Strategies

7. Management Summary

7.1.Organization Structure

7.2.Personnel Plan

7.3.




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1 Executive SummaryFormatted:Font: +Headings (Calibri)


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1 Executive Summary

Corporate Yoga will serve Singaporean businesses, helping them to become more

productive, while lowering their overall costs.Our business is based on two simple facts:

1.Healthy employees are more productive than chronically ill employees.

2.It costs less to prevent injuries or illnesses than to treat them after they occur.

We currently have a 3-year old business operating in India in the cities of Delhi,

Mumbai, Bangalore and Hyderabad providing Corporate Yoga services to up to 30

companies on a regular basis. Having gained proficiency in this particular business, we

are now planning to expand our business to Singapore based on the similar model.

We tie worker productivity directly to the health care issue.

Stress at work is posing a great threat to the health of the employees and, in turn, to

the organizations. Several studies have shown that if the working conditions arestressful, there is an increase in absenteeism, tardiness and employees intention to

quit their jobsall of which have a negative impact on the bottom line. Recent studies

show that policies benefitting employee health also benefit the bottom line. Here, the

corporate yoga plays a vital role in reducing stress, minimizing illness, injury, disability

in the workforce and thereby making the organization competitive in the marketplace.

By helping employees change their behavior patterns and choose more healthy

lifestyles, Corporate Yoga will lower companies' health care expenditures, while raising

worker productivity. Health care expenditures will decrease due to reduced medical

insurance premiums, reduced absenteeism, reduced turnover rates, reduced worker's

compensation claims, reduced tardiness, shorter hospital stays, etc.

Why?1.1

1.1Why?

ASSOCHAM report1based on the survey of 500 corporate employees from 300 various

companies/organizations across 18 broad sectors of the economy revealed that nearly

75% of the respondents suffered chronic/lifestyle or acute disease. Out of the 65% ill

corporate employees, 32% were afflicted to lifestyle disease, followed by 21% suffering

from chronic disease and remaining 12% have an acute ailment.

Objectives1.2

1.1 Objectives

1. Continue to provide on-site Yoga programs to businesses and schools in India.

2. Expand Corporate Yoga into 25 companies and 20 schools in Singapore by the end of

next year.



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3. Expand operations in other Asian countries like Malaysia, Bangladesh, and Indonesia

etc. in 3 years.

4. Enter the American and European market within 5 years.

Mission1.3

1.2 Mission

Our mission is to ensure the holistic well-being of an individual where he can perform

to his best in every aspect of lifepersonal and professional. We aim to create a health

awareness in the corporates where due to the huge pressures, the employees are at a

risk of suffering from various diseases.We do this with love, compassion, a sense of

humor, and with respect for what each individual can accomplish through Yoga and

throughout their lives.

Corporate Yoga is a health service that helps businesses and individual workers attainone of the greatest gifts of all--that of good health. Personal gains, such as improved

self-esteem and self-motivation, combined with measurable benefits will create

tremendous advantages for both the employer and the employee.

Vision1.4

1.3 Vision

Our vision is to be the largest company specializing in corporate yoga services across

Asia within 20 years.

Core Values1.5

Teamwork

The power of many is greater than the power of one. We treat one another with

respect, welcome new ideas and encourage everyone to step up and go the extra mile

by doing what needs to be done. We never say, Thats not my job.

Exceptional Customer Service

Our number one job is to ensure our customers are happy. Every interaction with them

is an opportunity to delight. We deliver in a timely, accurate and friendly manner with

a can-do attitude, never forgetting that they come to us by choice.

Personal Responsibility

We lead by example with honesty, integrity and respect. We like to win and we share

our successes. We applaud initiative, hold team members accountable and own our

mistakes.

Keep it Simple


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Our philosophy is that less is more. We strive to be innovative and efficient with a

compulsion to stay lean and mean.

Keep it Light

Not only is laughter the best medicine, its also one of the keys to a happy, healthy,

balanced brand of success. We take our jobs seriously, but that doesnt mean we cant

have fun doing them; its important that we do so.

Growth and Learning

We are committed to evolving our programs and developing our employees. After all,

transforming lives is our business. We strive to create an environment where everyone

has the opportunity to grow. We look toward the future and learn from the past. We

embrace change.

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Company Summary

2 Company Summary

Existing Business Operation

Existing Business Operation1.6

Company Ownership

Corporate Yoga is a privately held corporation. The founders have an equal stake in the

ownership of the company.The company was registered in 2010.

Business Operations in India

Corporate Yoga has 4 studios each in Gurgaon, Bangalore, Mumbai and Hyderabad. We

provide corporate yoga services to 30 companies and 20 schools in India apart from

private sessions at the studio.

The details of the existing business operations are outlines in Chapter 5: Financial Plan

Team:

Managers:

Finance Manager

Human Resource Manager

Health Services Manager

Marketing Manager

Project Manager

15 20 instructors

34 Executive instructors having salary of Rs. 1,00,000/- per month

57 Senior Instructors having salary of Rs. 75,000/- per month

79 Junior Instructors having salary of Rs. 40,000/- per month

Studio-cum-office rentGurgaon: Rs. 75,000/- per month

Mumbai: Rs. 90,000/- per month

Bangalore: Rs. 60,000/- per month

Hyderabad: Rs. 50,000/- per month

Serving 30 companies and 20 schools in India.

Private sessions for general public

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Timing for schools will be morning 8 to evening 2

Expansion Plan1.41.2

After setting up of our base in India with 4 cities primarily where the service industry

has grown exponentially, we want to take our company global. India, has yoga industry

which is very much unorganized which gives additional advantage to the individual

yoga instructors.

Hence we see a limit to the expansion where an individual yoga instructors charge

much less for the same. Hence we plan to take our expertise in Yoga with our certified

instructors to a country with a service based industry and with a population with a high

th disposable incomegreater than .

We also need to consider the business environment of the industry where we need to

analyze the ease of doing business and the competitiveness of the industry.

1.1.12.1.1Company Location: Singapore2

The most compelling reason for Indian entrepreneurs to go to Singapore is the ease of

doing business there. The Southeast Asian nation topped the World Bank's Doing

Business 2013 survey of 185 countries. India is ranked 132.

In terms of starting a business, the city-state is ranked fourthwhile India comes in at

173. The World Bank survey also notes that it takes three permits and three days to

start a business in Singapore. In comparison, it takes 12 approvals and 27 days to start

a business in India.

Singapore's easier tax regimemakes it even more attractive. Singapore corporate tax

rate is 8.5% for profits up to S$300K and a flat 17% for profits above S$300K. Compare

that to Indias corporate income tax rate of 30.9% for taxable income up to INR 10

million and 33.9% for taxable income above INR 10 million. Unlike India, there is no

dividend tax and no capital gains tax in Singapore. Moreover, foreign-sourced income is

taxed only when remitted into Singapore whereas Indian companies are taxed on

worldwide profits irrespective of whether they are remitted into India or not.

A company must be present for at least two years in Singapore to avail tax benefits.

Companies must also show a minimum S$200,000 in costs and at least one founder

should have a work visa in the city-state, he says. "Singapore is a fantastic structure to

explore but companies can get tax benefits only if they can prove that the motive toopt for this structure is not tax benefits only.

The number of Indian companies with operations in the city-state has jumped to 4,000

in 2012 from 1,100 in 2000, according to the Singapore Economic Development Board

(SEDB). This gives us an idea that this has been happening at very fast pace.

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1.1.22.1.2PESTLE Analysis

Pros Cons

Political

Stable government, PAP in power since

independence

Few political turbulence and negative images

Efficient and transparent govt.

5thleast corrupt nation

Economic

Easy application to system for foreign players to start

business

High per capita income

Reduced interest rates

High dependence on global market trends

Allowance of 100% FDI 18 FTA with 24 trading partners

Less tax regimes investor are not subject to capital

gains tax, dividend tax and foreign exchange controls

Volatility and

fluctuations in

macro-economy

Widening trends

in incomeinequality

Social

Sound education system, this trained labor

English as primary language

Multicultural, thus high level of acceptance

Population mix

High living standard

Decreasing birth

rate and ageing

population

Income inequality

Technological

World class technological infrastructure, #2 globally

Business parks

High Research and Development Booming e-commerce more than 3.7 million

internet users

Legal

Quick and easy to establish business

Low corporate tax18%

Competition Actprevent anti-competition behavior

Minimal restrictions on foreign exchange transactions

Open Door Policyeasy to hire foreigners

Easy to set up (ranked 4th) and exit business (ranked

2nd

)

No minimum wage

Possibility of

political

interference in

judiciary system

Increasing

regulations for

future regulation

Future difficulties

with immigration

Environment

al

Acceded to many international environmental

agreements

Heavy domestic regulations on environmental

protection

Industrial

pollution

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1.1.32.1.3Entry Mode3

From the above diagram we observe the various options a foreign entity has to enter

Singapore. Each of them has its own advantages and disadvantages.

As we have four partners hence Sole proprietorship is not possible and also Partnership

route will not be preferred as we do not want to dilute the ownership structure as of

now.

To avail tax benefits, we dont want to enter via the branch or representative office

route as only registered companies will get tax benefits after a certain time

period(currently 2 years).

Hence the options remaining are entering by establishing an incorporate company.

Initially we intend to enter as a privately listed company and set up our operations. In

about 5 years in order to raise capital to enter the North American and European

markets, we will go for public listing.

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3.2 Porters Five Forces Analysis1.6

Porter five forces analysis is a framework for industry analysis and business strategy

development. It draws upon industrial organization economics to derive five forcesthat determine the competitive intensity and therefore attractiveness of a market.

Attractiveness in this context refers to the overall industry profitability. These are a few

vital questions that need to be answered before starting a business.

Bargaining power of customers

This refers to the ability of the consumers to affect the firm.It also indicates their

sensitivity to price fluctuations. This is based on the substitutes available as well as

uniqueness of the products offered by our business.

Uniqueness of our product:

Personalized services Small batch size

In-house services provided

Cuts travelling expenses

Helps in inter-personal relationship building between co-workers

Bargaining power of suppliers

The bargaining power of suppliers is also described as the market of inputs. Suppliers

of raw materials, components, labor, and services (such as expertise) to the firm can be

a source of power over the firm, when there are few substitutes. Suppliers may refuse

to work with the firm, or, e.g. charge excessively high prices for unique resources.

Equipment Supplier

College/University for hiring teachers-

Requirement of certified teachers might be hard to meet, because certification

demands a set of minimum standards to be met. So the instructors can demand

a higher pay.

Accreditation from the international Yoga Federation-International Yoga

Federation is the largest yoga organization in the world and is open to all yogis

and yoga organizations. IYF supports the minimum international standards for

yoga teachers from 1987.*

*http://www.internationalyogafederation.net/standards.htm

Substitutes

This occurs when companies from other industries try to move into the market. The

existence of products outside of the realm of the common product boundaries

increases the propensity of customers to switch to alternatives.

Substitutes available:

Gymming

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Pilates

Aerobics

Swimming

Dance Tai Chi

WholyFit-the Christian alternative to yoga

Threat of New Entrants

The percentage of people that practice Yoga increases on an average of 20-25%

every year.

Spendings on Yoga products have increase by 87% in the past 5 years

With overall growth of the wellness industry, new training programs to support

practitioners are in demand, including advanced professional development and

business training.

Insurance companies are already paying for yoga Yoga will be prescribed by the doctor

Yogas growth is part of a bigger wellness trend. Those companies that want to

capitalize off the trend will add services such as nutritional programs, exercise

routines, spa services and wellness consultations in conjunction to yoga

offerings.

All these statistics clearly indicate the growth potential for corporate yoga, and this

surge will definitely create competitors, wanting to tap into this growing market.

Competitive rivalry among the industry

Porter calls this "the scrambling and jockeying for position." Businesses compete for

customers by price, quality, and speed.

Existing yoga classes and courses available in Singapore:

Sivananda Yoga

Anahata Yoga

Pure yoga

Ananda Marga

COMO Shambhala Urban Escape

Green Yoga

Om Shiva Yoga center



























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34Market Research

Corporate Yoga has done a market research to gather information about the market

and about the common attributes of the prized and loyal customers. This informationwill be leveraged to better understand who is served, their specific needs, and how

Corporate Yoga can better communicate with them.4

http://www.mom.gov.sg/statistics-publications/national-labour-market-

information/statistics/Pages/employment.aspx

4.1 Market Trends1.7

The statistics paint a promising picture. The National Sports Participation Survey

conducted by the Singapore Sports Council in 2006 revealed that yoga is the 10th

most

popular sport among local women. The awareness of Yoga is spreading in Europe.5

http://www.nsga.org/i4a/pages/index.cfm?pageID=4492

According to the article Match and Stretch by Lionel Seah, The Strait Times

Interactive, 9 Nov 2002, Yoga studios are popping up across the island of Singapore and

the number of practitioners of this exercise has increased dramatically. For instance,

the membership at the yoga centers have jumped from fewer than 100 when they

started in 1998 to more than 3,000 now. At smaller studios, membership has risen by

at least 40%.6

15.90%

13.20%

70.60%

0.70%

Manufacturing

Construction

Services

Others

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http://www.mom.gov.sg/statistics-publications/national-labour-market-information/statistics/Pages/employment.aspxhttp://www.mom.gov.sg/statistics-publications/national-labour-market-information/statistics/Pages/employment.aspxhttp://www.mom.gov.sg/statistics-publications/national-labour-market-information/statistics/Pages/employment.aspxhttp://www.mom.gov.sg/statistics-publications/national-labour-market-information/statistics/Pages/employment.aspxhttp://www.mom.gov.sg/statistics-publications/national-labour-market-information/statistics/Pages/employment.aspx


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4.3 Market Segmentation and Positioning1.9

Segmentation & Targeting

The market for corporate yoga is not particularly segmented, as potential customers

include all downtown businesses that offer their employees some type of medical

benefits, are experiencing escalating health care costs, and wish to more effectively

manage those costs.

Corporate Yoga, however, segments its services for individual organizations. Corporate

Yoga works with senior management to develop mission statements and provide

incentive plans, and with employees to design personalized health and fitness

programs.

The targeted customers are corporate employees and manufacturing employees.

Positioning

Corporate Yoga will position them selves as the most effective wellness strategy and

program developer. This positioning will be supported by statistics indicating an

increase in worker productivity and a decrease in business operation expenses from

the implementation of corporate wellness programs.

4.4 Competitive Analysis1.10

Singapore is fast becoming the mecca in Asia for the yoga-aficionado. There are more

than 65 yoga studios, from giants like Pure Yoga to boutique studios peppered around

town. Type in Yoga in Singapore in Google, you get nearly 5.5 million search results.

Some of the yoga centers with their practices are mentioned below:

1.OmShiva Yoga Center7

Course Fees: $ 2900

Course Duration: 40 days

Course Syllabus:

Part 1 - THEORY - 80 hours

Part 2 - YOGA PRACTICES

Part 3 - FIELD PRACTICE: 120 HOURS TEACHING PRACTICE

Part 4 - FIELD REPORT on any suitable yoga subject

2. True Yoga8

Established in late 2004 in Singapore by Founder and Group CEO Mr. Patrick Wee, this

Singapore brand has established its presence in five countries Singapore, Malaysia,

Taiwan, Thailand and China.

Types of Yoga taught: Hot Yoga, Bikram yoga, Pilates, Personal Training, Dance

Course duration: 50 days









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Course Fees: $6000

Secondary Business: Aesthetics and Spa

Reach: 30 centers across 5 countries

3. Ananda Marga Yoga Centre

Programmes Offered: Teachers Training Program, Yoga Trials, Beginner Class

Course Fees: $ 5500

Secondary Business: Homeopathy, Yoga Books and Apparel

There are many more players like AbsoluteYoga, Yogashala, Iyengar Yoga center, Yoga

Movement to name a few operating in Singapore. But our plan is distinct for it

specializes in yoga for the corporate. And that gives a good advantage over other

players and we can concentrate all our energy on the target group selected by us.




















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Class capacity:50 students

Estimated Income =Total no. of batches(per day) X Total Cities X Different batches X

Price X Total Students

= 2*4*5*500*50 = Rs. 10,00,000/ month

Society

Frequency:10 societies per city, everyday 1 hour session in 2 batches per day

Price: Rs. 2500/ month

Class Capacity:75/ batch

Equipment:Mats provided to every individual= 30

Estimated income = Total mats provided X Total participants X Total Cities +

Students/batch X Total Cities X Total Batches X Price per participant

= 30*150*4 + 75*4*2*2500=1518000/ month

Total Income = Income from Company (A) + Income from schools (B) + Income from

Society (C)

= 1505000 + 1000000 + 1518000

= Rs. 40,23,000/ month X 12 = Rs. 4,82,76,000

Total Expenditure = Rs. 2,62,60,000/ year

Total Profit per year= 4827600026260000 = Rs. 2,20,16,000 / year

Business Plan for operation in Singapore

Cost during 1st

year

Office Space/Studio space rent:$5000/ month @ Rs. 65/$ = Rs. 39,00,000 / year

Total Branches:3

Total Rent Cost:Rs. 1,27,00,000

Yoga Instructors Salary:$5000/month @ Rs. 65/$ = Rs. 39,00,000 / year

Total Yoga instructors:On an average 8/ year (See below {business expansion plan})

Cost on Instructors:Rs. 3,12,00,000 / year

Total Advertisement/promotional cost:Rs. 36,00,000

Total Cost:Total Rent Cost + Cost on Instructors + Advertisement Cost =

Rs. 4,75,00,000

Initial Outflow:Rs 4,75,00,000

RetainedCapital: Rs 2,20, 00, 000

AdditionalCapital Req. : Rs

2,55,00,000

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The additional Rs 25500000 will be raised through debt capital because the cost of

raising debt in Singapore is very cheap and raising capital through equity will be very

difficult as our enterprise will be a start up of sorts and people would perceive it as

risky. Also, according to the pecking order theory, raising capital through internally

generated capital is cheapest followed by debt and then equity.

Companies

Frequency: Bi-weekly 1 hour sessions in 3 batches per day

Monthly Price: $100 per person

Class capacity: 30-40 students (depending on the enrolment and space available)

Equipment: Yoga mats at $15 per mat. We supply every company with 50 mats.

Schools

Frequency: Weekly 30 min sessions 5 batches per day

Price: Rs. $20 per student per month

Class capacity: Upto 100 studentsEquipment: Provision of 100 mats for use during the session owned by the company

Business Expansion Plan

1st quarter

Personnel: 5 Yoga instructors with monthly salary of $5,000

No. of companies: 10

Estimated income: 100*40*3*10 = $1,20,000

No. of schools = 10


2nd quarter




No. of schools = 15


3rd quarter


No. of companies = 20


No. of schools = 20




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Team: 15 instructors

3 Having Rs 1 lac (Executive Instructors)

5 Having Rs 75000 (Senior Instructors)

7 Having Rs 40000 (Junior Instructors)

Studio-cum-office rent

Gurgaon: Rs. 75,000/- month

Mumbai: Rs. 90,000/- month

Bangalore: Rs. 60,000/- month

Hyderabad: Rs. 50,000/- month

Serving 30 companies and 20 schools in India.

Private sessions for general public

Timing for schools will be morning 8 to evening 2

Companies


Price: Rs. 2000/- per person if self-sponsored. Rs. 1500/- if sponsored by the

employers.


Equipment: Yoga mats at Rs.250/- per mat. We supply every company with 50 mats.

Estimated monthly income: 1750*35*3*30 = 5,512,500/-

Schools


Price: Rs. 100/- per student per monthtoo low man 500/student/month is min

Class capacity: Upto 100 studentsEquipment: Provision of 100 mats for use during the session owned by the company

Estimated Income: 500*100*20 = 10,00,000/-

Society

10 societies

Everyday: 1 hour session in 2 batches per day

Class Capacity: 30/batch

Equipment: Mats: To every individual= 30*10*2=600

Cost/class=100/day=2500/month

Estimated income/month=600*2500=1500000/-

Business Plan for operation in Singapore

Office Space/Studio space rent: $5000/ month

Companies


Monthly Price: $100 per person


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Equipment: Yoga mats at $15 per mat. We supply every company with 50 mats.

Schools


Price: Rs. $20 per student per month

Class capacity: Upto 100 students

Equipment: Provision of 100 mats for use during the session owned by the company

1st quarter




No. of schools = 10


2nd quarter




No. of schools = 15


3rd quarter




No. of schools = 20


4th quarter




No. of schools = 20



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Private studio sessions @ $25 per session

No. of per day enrolments = 40

Estimated income: 40*25*30 = $30,000


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56Implementation Summary

6.1 Milestones/Timeline1.11

1.12 Sales Forecast

October 2013:Incorporation

November2014:

Increase toabout 50

companies in

Singapore

April 2015:Going public

January 2016:Expanding toother MISTcountries

March 2018:Entry to USA

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6.2 Marketing Strategies1.13

Selling yoga to corporations and organizations is not difficult if we have the right

approach, techniques and know-how. In fact, with the proper tools and skills, thebenefits of yoga will sell themselves.

Newsletters and Brochures: Circulate brochures and newsletters to companies

through both electronic and real media to communicate the benefits of

Corporate Yoga in a meaningful way to our potential customers.

Internet:Maximizing the marketing power of the Internet, via email advertising,

search engine optimization, and more

Outdoor:Hoardings, billboards etc. in commercial/industrial areas.

Offer some free classes/workshopsIn a new organization or school or even in

the studio. Target specific audiences or events on some special occasions, ifappropriate.

Join local business organizations and networking groups. Many, such as home-

based business groups, are inexpensive to join. Once they get to know you and

what you do, the other business people in your group will mention your

business to others and may even give you referrals

Promote or sponsor a charitable event: Scope of getting huge amounts of press

for events like thiswhich can translate into new customers.

Website/Blog - and use it to build an audience of people who would be

interested in your products and/or services. Make it interactive, write regularly

about topics related to our business.

Social Media (Facebook, Twitter etc.): Promote your business and

communicate the benefits on social media sites like Facebook and Twitter,launch online events and try to garner maximum number of likes.

Ask for referrals Ask our client companies and schools to refer us to their

associates.

Distribution of CDs: Distribute CDs containing audio-visual guide to Yoga

amongst our customers.

Sponsor/participate in corporate events and trade fairs.




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6 Management Summary

6.3 Organization Structure1.14Proposed Organization Structure according to Singapore Laws

9

Corporate Yoga is currently a small organization. It is the brainchild of a dynamic

personality, namely, Mr. XYZ, who is the CEO who oversees all the activities of the

organization.

The Manager of Health Services is the contact for and supervisor of the yoga

specialists and health educators and promoters. He is responsible for matters

relating to administration and coordinates the activities of all the teachers who

are a part of the organization.

The Manager of Sales and Marketing is responsible for establishing anddirecting the marketing and sales activities of an organization including

advertising and public relations. These activities affect the direction and goals of

business.

The Manager of Finance is responsible for guiding and directing financial and

control activities of the company in a manner designed to protect assets, meet

reporting requirements, and effectively plan for and audit the financial needs of

the firm. He ensures implementing and complying with financial and

administrative procedures to ensure compliance with regulations.

The Manager of Human Resource handle personnel decisions, including hiring,

position assignment, training, benefits, and compensation. The must ensure

hiring of certified and capable Yoga teachers for the organization.

The Project manager is responsible for the planning and execution of businessdevelopment plans. The expansion of business in Singapore is particularly is

directly led by him.

As the firm grows and expands, more positions will be added as needed.


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1.15 Personnel Plan

Year 1 Year 2 Year 3Fitness Center Management $15,000 $15,000 $15,000

Program Director $54,000 $54,000 $54,000

Personnel Manager $36,000 $36,000 $36,000

Health/Fitness Specialists $33,000 $33,000 $33,000

Attendants $12,000 $12,000 $12,000

Total People 0 0 0

Total Payroll $150,000 $150,000 $150,000

Chief ExecutiveOfficer

Manager

Sales andMarketing

Manager

Finance

Manager

Human Resource

Manager

Health ServiceProject Manager

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7 Appendix

Entering Singapore via Private limited incorporation:

General Characteristics:

In Singapore, the two main types of incorporated companies are:

Private Limited (Pte Ltd) Companies: the number of shareholders is limited to fifty or

less and has restrictions on the right to transfer its shares

Public Companies: the number of shareholders can be more than fifty members and

the company may raise capital by offering shares and debentures to the public

View the diagram for the various possibilies of the above types of business.

A Private Company limited by shares - Private Limited Company (Pte Ltd) is the most

common type of company.

A Singapore Company may be registered with only one shareholder who can be an

individual or a corporation. There is no requirement for shareholder(s) to be resident inSingapore.

The liability of the shareholders is limited to the amount, if any, unpaid on the shares

issued to them. However, there is no minimum capital requirement. The company can

be formed with an issued capital of S$ 1 that can subsequently be increased to the

required amount. The par value of shares is usually fixed at S$ 1 per share. No-par

value and bearer shares are not permitted.

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Registration

Application by a foreign company/individual is mandatory through a professional

business registration firm.

A foreigner, who wants to relocate to Singapore to be the director of his own company

needs to apply for an Employment Pass under the EntrePass Scheme at the Ministry of

Manpower (MOM). Only upon approval of his EntrePass application, he may then

proceed to himself incorporate the company with ACRA. He may also apply for an

EntrePass if he owns a company registered with ACRA for not more than 6 months at

the point of his EntrePass application.

A Company must have a registered office situated within Singapore. Your company

registration agent can provide this service if required. You may alternatively register a

residential flat or property under the Home Office Scheme (HO).

The first step in incorporating a company to obtain approval for the proposed name.

Names for all companies in Singapore must conform to certain guidelines laid down in

the Companies Act. See here for guidelines on Name Approval

After the company name has been approved, the following incorporation documents

must be prepared and filed:

Memorandum & Articles of Association setting out the objects and bye-laws of the

proposed company.

Statutory Declaration of Compliance (Form 6)

Certificate of Identity (Form 7)

Notice of Situation of Registered Office and of Office Hours at time of Incorporation(Form 44)

Consent to Act as Director & Statement of Non Disqualification to Act as Director (Form

45).

Representatives

One man companies with a single (individual or corporate) shareholder are admissible

and a company can only have one director. However, at least one director must be

ordinarily resident in Singapore, i.e. a Singapore Citizen, a Singapore Permanent

Resident, or a person who has been issued an Employment Pass/Approval-In-Principle

letter/Dependants Pass. Any person at least 18years old may be appointed as a

director.

Every foreign company registered under the Companies Act must have two agents

acting on its behalf in Singapore. These agents must be Singaporeans, Singapore

Permanent Residents or Singapore Employment Pass Holders.


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Directors of a Singapore company bear a host of duties and responsibilities. The

Companies Act requires directors to act honestly at all times and exercise reasonable

diligence in discharging their duties. Directors duties fall under three main categories:

Fiduciary Duties: Directors have to act in what they honestly believe to be the

companys interests, and not in the interests of any other party.

Duty of Skill, Care and Diligence: A duty of care means, for example, that a director

needs to find out what his powers and responsibilities are under the companys articles

and under the law.

Statutory Duties: Statutory duties are imposed on directors by statute, principally the

Companies Act.

A Company Secretary, responsible for maintaining the company records and other

administrative duties as prescribed by law, must be appointed within six months. The

secretary shall be a natural person who has his principal or only place of residence in

Singapore. The Companies Act prescribes minimum qualifications as regards who can

be a company secretary. Private companies may also appoint their qualified employeesor directors to perform these duties.

An Auditor must be appointed within three months from the date of incorporation

unless it is exempted from audit requirements under Section 205B, or 205C, of the

Companies Act. In practice, appointment is arranged upon incorporation of the

company.

Compliance


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The following are the major requirements and filings an incorporated company must

comply with:

Have a registeredoffice as from the date of incorporation.This office has to be open

and accessibleto the public for not less than five hoursduring ordinary business hours

on each day(except Sundays, weekends and public holidays).

The full name of the company and the Company Registration Number must appear on

all letterheads, prospectuses and other official documents used by the company.

Keep and maintain certain statutory books and registers such as a register of members,

a register of directors, managers, secretaries and auditors and a register of directors

shareholdings

The Companies Act requires the financial statements of every company to be audited

once every year. This comprises a statement of profit and loss, balance sheet, directors

report, statement by directors and an auditors report to be prepared; and other

disclosures required by Statements of Accounting Standards in Singapore. The audited

accounts and reports have to be filed with the Registrar within one month after the

AGM.The first annual general meeting (AGM) must be held within 18 months of the date of

incorporation. After that there must be at least one annual general meeting not more

than 15 months from the date of the last AGM. No physical meeting must take place if

all shareholders consent. At the AGM, the directors are required to present to the

shareholders the audited accounts for the immediately preceding financial year, and

those accounts must be prepared up to a date not more than six months before the

date of the AGM. The fiscal year end is normally determined at the first directors

meeting.

Changes to registered particulars have to be notified to the Registrar, including a

change of name, the alteration of the companys Articles of Association, the allotment

of new shares and an increase of the authorized capital.


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References

8

[1]http://www.dialurdoctor.com/research.aspx

[2] http://www.luxembourgforbusiness.lu/market-entry-guide-singapore

[3] http://www.entersingaporebusiness.info/

[4http://www.mom.gov.sg/statistics-publications/national-labour-market-

information/statistics/Pages/employment.aspx

[5] http://www.nsga.org/i4a/pages/index.cfm?pageID=4492

[6] http://www.iayt.org/site_vx2/publications/Bibliographies_Members/stats.pdf

[7] http://www.omshivayoga.com/

[8]http://www.trueyoga.com.sg/

[9]http://www.bycpa.com/offshore/offco/singapore_company_faqs.html#q2


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FIM Plan Final

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