Conceptualizing The Options Available To Singapore Residents For Company Incorporation
When it comes to selecting a place to set up a new business in Southeast Asia, then undoubtedly Singapore sits at the top of the heap for offering the most ease in doing business and other factors necessary to operate the business.
Definitely, the 21st century is going to be the Asian century. Moreover, the huge untapped market in Asia and the increasing consumption levels in Asian countries, specifically China, Malaysia, Indonesia and Philippines; offers an incredible aspiring potential for the businesses and entrepreneurs looking to grab every opportunity of growth.
After Singapore opened its doors for foreign investment and simplified the process of Singapore company registration, investors and entrepreneurs took advantage of the opportunity.
Locals, as well as foreign entrepreneurs came forward to take advantage of the benefits, incentives, and tax exemptions offered by the Singapore government to the newly incorporated companies in Singapore. Singapore company incorporation services, like SBS Consulting, helps these aspiring entrepreneurs and visionary investors in choosing the best business entity suiting their purpose and to open company in Singapore.
Options Available In Business Entities for Singapore Residents
• Sole Proprietorship
• Limited Liability Partnership (LLP)
• Private Limited Company (PLC)
• Exempt Private Company (EPC)
- A sole proprietorship is the simplest business structure chosen by entrepreneurs for personal business formation in Singapore.
- The owner is the whole and soul of the company.
- A sole proprietor firm has no separate legal entity from its owner.
- Losses or debts incurred by the sole proprietor firm is the liability of the owner of the company and owner’s property is used to compensate these losses.
- The income of the sole proprietor firm is the income of the owner and he/she has to pay personal income tax gains it.
Limited Liability Partnership (LLP)
- A limited liability partnership firm gives a legal opening to two or more qualified professionals harboring entrepreneurial spirits, so they can come together and proceed for Singapore company registration.
- A solicitor prepares a document giving details of sharing of profits or losses, duties, hours of business, etc. for both the entrepreneurs.
- In a limited liability partnership, partners are responsible for the losses or debts incurred by the business due to their own actions.
- In the event of losses or debts, the personal assets of the partners are at risk. Their personal assets are at risk.
- Partners have to pay personal tax for the income generated from the LLP.
Private Limited Company (PLC)
- A private limited company is a very powerful, flexible, and scalable business structure. The majority of company incorporation in Singapore are for this business type.
- A Pte Ltd Company is a legally independent entity from its owners (shareholders).
- Like a natural person, it can buy real estate or property for its own use and under its own name.
- It is a limited liability company with not more than 50 shareholders.
- A shareholder’s liability is limited to the amount used to purchase its shares.
- A PLC’s debts and losses are its own. Its property is used to pay them.
- It has perpetual existence; shareholders may die or sell their shares to others, it does not affect the company’s existence.
Exempt Private Company (EPC)
- An Exempt Private Company is similar to the private limited company except the shareholder count is limited to a maximum twenty in number.
- In those twenty shareholders should be natural persons and no corporate entity is allowed to hold the shares.
- EPCs are preferred because they are subjected to reduced compliance requirements.
- If the annual turnover of an EPC is below SGD 5 million it is exempted from statutory audit requirements.
- An EPC can announce its solvency by submitting a solvency declaration signed by its company secretary and directors.
- Many of the private limited companies have converted themselves into EPCs.
Registration Procedure and Timeline
SBS Consulting undertakes to do or obtain;
- Name Reservation of the proposed company
- Register Company with the ACRA (Accounting and Corporate Regulatory Authority)
- Certificate of Incorporation
- Company Business Profile
- Opening a Corporate Bank Account
- Applying for Business Licenses
- Goods and Service Tax (GST) registration
- Annual Filing Requirements
Requirements for Singapore Company Incorporation
- Minimum paid-up capital of S$1
- At least one nominee local director
- At least one company secretary
- At least one shareholder (maximum 50 for a PLC and 20 for EPC)
- Registered address for company office
SBS Consulting offers competitive Singapore company incorporation packages. This firm helps its clients to start a Singapore company. With the duly signed, required documents, normally, it takes only 24 to 48 hours for a company formation in Singapore.