4 Hacks to Make Your Company Incorporation Easyby Leslie S. Professional Content Writer
If you have a product or services that can add to your customers' lives, you need to incorporate a Singapore company to protect it. Doing so makes it legitimate and helps you in keeping the copycats away. Singapore company incorporation a streamlined process that is free of red-tape and bureaucratic hassles.
When you are opting to register your business in Singapore, you have 3 options. You can go for Singapore company incorporation or register a business firm like Sole Proprietorship or Limited Liability Partnership (LLP).
Business owners trust a private limited company. A large number of businesses registered in Singapore are of this type. It is a dynamic legal structure that scales with an expanding business.
How Do You Benefit from the Incorporation of a Singapore Private Limited Company?
Incorporation of a company in Singapore refers to a legal process adopted to set up a Private Limited Company Limited by Shares. In addition to the limited liability, your Singapore company incorporation brings you benefits like:
- Your assets are not used to pay the debts and losses of the company
- Company's credible Image gives easy access to funds for expansion
- Protects company name as ACRA makes sure that company names are unique
- Company's perpetual existence means shareholders may change, but the company keeps on existing
- Singapore Corporate tax is in the range of 0%-17%
Private Limited Company
A private limited company is favoured because it limits the shareholders' liability to their investment in its shares. The owners of sole proprietors and LLPs have unlimited liability. It puts their assets at risk.
- A private limited company has 1-50 shareholders
- It needs at least one resident director
- Anyone over the age of 18 can set up a Singapore company
- It is a separate legal entity and a legal person
- It can buy real estate in its name
- It can sue or be sued in its name
- Transfer of shares is easy
A sole proprietorship is not a separate entity. Its credibility depends on that of its proprietor. Proprietor's liability is unlimited towards the proprietorship's debts and losses. The proprietor has to purchases properties and pays property tax.
Limited Liability Partnership (LLP)
A group of 2-20 members (individuals/companies) can register an LLP.
It is a separate legal entity. The members' liability is limited. They are responsible if their actions or inaction cause any loss or debts to the LLP.
The drawback of registering a sole proprietorship or LLP is that their owners have to pay personal tax on income from their businesses. The current rate is in the range of 0%-22%, which is higher than the corporate tax.
Benefits of Singapore Company Incorporation
When you incorporate a Singapore company, it is considered as a local company.
- It has access to tax benefits, exemptions, and rebates offered by authorities.
- It can also claim deductible expenses.
- It benefits from Avoidance of Double Taxation Treaties during its cross-border trade.
All these things work together to bring its operational costs down. As a shareholder in your company, you benefit from the tax-free dividends. And you can move your money out of Singapore at any time without having to take any permission from authorities.
Appoint Singapore Company Incorporation Services Provider
Appointing an experienced provider of Singapore company incorporation services comes handy. They have experts who are capable of taking care of any glitch in the process. They advise you on the ACRA's fees and documents you need for forming your company.
Singapore Company Incorporation Documents
- Company name approved by ACRA
- Business activities in brief
- Registered local address
- Particulars of shareholders/directors/company secretary
- Foreign Individuals: A copy of their passport and residential address proof (overseas)
- Foreign Companies: Company Constitution, Certificate of Incorporation
- Singapore Residents: A copy of their Singapore ID
Post Registration Activities
After registering your company, ACRA sends you an email containing Certificate of Incorporation, Unique Entity Number, Etc. You may need this info to complete a few of the following activity.
- Open a corporate bank account to streamline company transactions
- Conduct first board meeting, adopt company constitution, company seal, issue shares, and appoint company officers
- Calculate your business' estimated revenue
- Start a company's statutory books
- Maintain tax records
Running a company and taking care of its statutory compliance is a tough task. You need to get it right at the start. Appointing the services of experienced providers of corporate services that also offers Singapore company registration services helps in complying with the laws and regulations. Their experts can make your company incorporation a hassle-free experience.
Created on Jan 13th 2021 22:19. Viewed 30 times.