With favorable geographical locations, Singapore is one of the best countries to expand your business. However, the norms and regulations for company incorporation in Singapore are very different. Several factors come to play before incorporating a business in Singapore.
There are many leading company incorporation service providers in Singapore. But before stepping into the business world of Singapore and hiring any consultancy firm, one must have detailed knowledge as to how to invest and how to set up the business to get the maximum profit.
Types of Business Entities in Singapore
All the decisions needed to make for incorporating a company in Singapore, the most difficult is to choose the type of business structure.
- Sole Proprietorship
Businesses owned by one individual fall under sole proprietorship. The owner is fully responsible for the profit or losses that the company may incur.
- Company or Limited Liability Company (LLC)
The company incorporated under the ownership of two to twenty partners falls under this section. The Singapore incorporation law and regulation provide a separate legal entity to the company that is aloof from its owners. This means that the risks, debts are made in the name of the company and not the individual owners.
A Company Incorporated in Singapore Mainly Undertakes the Following Partnerships:
- Limited Partnership
This type of corporation has one general partner and one limited partner. The general owner can either be an individual or a corporation who is accountable for all the debts incurred during his period as the general partner. As for the limited partner, he is liable up to a certain limit as mentioned in the signing contract of the partnership.
- Limited Liability Partnership
Two partners are liable for the debts incurred by the company based on the amount invested. They are not liable for the debts incurred by other partners. An advantage for this option, limited liability partnership reduces the risk of personal loss.
Which Business Entity To Choose?
As the differences have been established, now comes the question of which one entity to choose. The answer lies in your situation and plans.
- You should be aware as to how much capital you are willing to invest
- Will you opt for single ownership or do you want partners?
- Are you willing to take limited or unlimited liabilities?
- What are the advantages and disadvantages of the various business structures?
How To Set Up A Company In Singapore?
Foreign companies must abide by the Singapore company incorporation norms to expand or set up their business here.
- The owner of the business must be at least 18 years old.
- Any business entity must have one representative residing in Singapore.
- A foreigner can apply for an Employment Pass under the new entity.
- The owner must also provide other documents as when required for the registration.
- After the registration, one must comply with the post-registration processes.
Contact the best company incorporation service providers in Singapore to get the best possible solutions and guidance on company incorporation in Singapore.