Local Company Registration is a Plain-Sailing Process with SingaporeAudit

Jul 7, 2014
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Local-Company-RegistrationSingapore beckons to a galore of opportunities for entrepreneurs. To support the business environment and make it more entrepreneur-friendly, Singapore has made its political framework pro-business, and kept the rules for Singapore company registration very easy. On the other hand, extremely effective and competitive tax rates make Singapore even more alluring.

Incorporation of a company in Singapore can be carried out in three ways, namely a private limited company, a limited liability partnership, and a sole proprietorship. All these companies differ in the working dynamics and operational manifestations. They even differ in their ability to hire people, and in their status and identity as a legal stand-alone company.

As an entrepreneur, you will have to decide which type of business structure will work most efficiently for your ideas. The decision about the type of company you want to incorporate, take will have its effects on many operational aspects at a later stage, like the taxation regime that you need to follow etc. In the meantime, leaf through the three types of companies that can be incorporated in Singapore by a local Singapore resident person.

1)       Private Limited Company – This type of company is also known as an LLC (Limited Liability Company). An LLC is a highly preferred option to incorporate for Singapore residents. It is mandatory that an LLC cannot have more than 50 shareholders, and the shareholders can be individuals as well as corporate entities. In addition, a private limited company has a separate legal entity and the shareholder carry limited liability towards the debts incurred by the LLC. Even raising funds is an easy task for such companies. Lastly, these companies are seen as the most credible of all three.

2)       Limited Liability Partnership – This is the second type of business structure that can be incorporated in Singapore by a local resident. It is seen that an LLP gives the owners the best of both the worlds. It has the benefits that a partnership can provide and the advantages of a legally setup company. An LLP is a suitable option for those who want to start a profession by the way of services they would provide, and get remuneration for the same.  

3)       Sole Proprietorship – This is the last and the simplest type of business that can be incorporated in Singapore. However, it is not a separate legal identity, and the owner has to take the responsibility of the debts and liabilities incurred by the company. If he is unable to pay the debts, the court has the power to dissolve his personal assets for the payment of debts. This is a risk, which every entrepreneur should be aware of before he incorporates a sole proprietorship.

You can get in touch with SingaporeAudit to know more about the locally starting a company in Singapore. Just dial +65 6536 0036 or you can drop in a quick email at info@singaporeaudit.com.sg