Different Types Of Singapore Company Structures
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.
Either an existing foreign company intending to expand its reach or an individual looking for a reliable economy to venture out his new business, Singapore is undoubtedly the best place for both. Potential business owners are likely to pursue an economy filled with business-friendly policies, qualified workers, tax-efficient structure, supportive government, etc., and surprisingly, Singapore has everything under its belt.
Below are the five reasons you need to consider registering your business with the help of company incorporation service in Singapore.
Easy Company Incorporation Process
The process of company incorporation in Singapore is something you must consider before taking tactical and time-consuming hurdles. Still, Singapore is excellent.
Two necessary steps need to be taken, Business Name Reservation and Company Registration (filing the application form) as a requirement for starting a business in Singapore. The entire process is informative, making it easy, simple, convenient, and swift. You may incorporate the business, provided that the paperwork is in order, and is considerably less time.
Progressive Tax Structure
The tax structure is one of the main advantages of doing business in Singapore. The tax rates are comparatively low, and a variety of tax rates are available. It is not a personal reality that everyone wants to retain as many earnings by minimizing tax liabilities. Fortunately, the Government of Singapore has wisely planned the country’s tax structure making it pro-business. There are many company incorporation professionals in Singapore which can help in saving taxes and proper utilization of funds.
Quick Access to Business Funds
Enabling access to funds and capital for kick-starting a new company is of particular concern to newbies. It makes sense that, at the time of bootstrapping, people sometimes face financing problems. Thanks to the government of Singapore and other private investors, venture capitalists, and angel investors, who help entrepreneurs lay a strong base for the company by offering funding assistance.
You cannot deny that most of us are finding a conveniently accessible business location from our native place. Thanks to the strategic position of the island nation, this is situated at the East and West crossroads. Singapore’s historic port has long been renowned for foreign shipping. Individuals from both regions will travel to Singapore within a few hours. It is one of the added benefits of doing business on Singapore’s shores.
The country’s abilities, expertise, and skills must be taken into account when you decide to run a company out there. When it comes to efficiency, a company will gain from a highly skilled workforce. The involvement of internationally recognized universities, schools, and organizations ensures that a world-class education has been offered to the local workforce. They can do business in English, and are highly qualified in a global arena. Talent supply makes the island nation a regional or international centre of industry.
If you are looking to your company for endless business opportunities, there’s no better place for companies than Singapore. The above factors have already clarified very well the reasons for this. What are you waiting for, then? If you’re expanding your current company or bootstrapping a new one, look for the best company incorporation service provider in Singapore and escape from all legal problems.