Company Registration for Singapore Residents
Company registration for Singapore residents can result in one of the three types of companies. Depending on the scope of their activity, they can form a Sole Proprietorship, a Limited Liability Partnership, or a Private Limited Company. Getting approval for the chosen company name is essential.
Singapore has lately emerged as one of the biggest financial hubs in the world. In Asia, it is considered as the most industrialized nation. Besides, it is also one of the friendliest and easiest places to do business. This is attributed to the fact that company registration in Singapore is just a matter of 2 days. For local entrepreneurs, the process is even more simple and straightforward.
You just have to get in touch with us for a fuss free Singapore company registration process. With SBS Consulting as your ally, you can be assured that you are with the most experienced service provider. For a start, just check out the definitions of the various companies that we can incorporate for you for a reasonable fee. Different types of businesses necessitate different company setups. Before starting a business or incorporating a company, learn which type of company will work most efficiently for your business.
The section given below gives information about the different types of business registrations we provide for locals and Singapore residents. A Singapore resident is one who is either a local Singaporean, or a permanent resident, or one who holds a valid employment pass or a dependent pass.
Note: If a Singapore resident is engaging in any business that is making profits, no matter the size of the business, it has to be registered with ACRA (Accounting and Corporate Registration Authority).
Company Registration Options for Singapore Residents
This is a type of entity structure mainly works for those individuals who carry out very small size businesses. If two or more people are involved in this type of business, then it can be called a partnership. In sole proprietorship, the business owner has ownership over all assets in the company and, all profits would go back to him.
The liabilities of these types of businesses are usually the responsibility of the owner/s. If any problem arises, or anything goes wrong with the business, then the owner has to compensate for the losses out of his personal assets. Owing to this unlimited liability factor, the owner should consider converting the company to a private limited as soon as he predicts or sees growth.
In case of partnerships also, the unlimited liability factor is present. The losses or liabilities have to borne by the partners equally. If one partner is not able to cover up the liabilities through his assets, then it is recovered from the assets of other partners.
In such a type of business, two or more people enter into a partnership. The main advantage of this type of entity is that one partner bears no personal responsibility for another partner’s dealings. Therefore, the name of such a type of business structure is ‘Limited Liability Partnership’. It can be said that LLP gives the owners, the best of both worlds i.e. the benefit of partnership and the advantages of a legally setup company.
On the other hand, there is still risk associated with partnerships, in a way that the legal existence of the business entity rests solely on the shoulders of the partners. If one of the partners faces death or retirement, then the partnership automatically dissolves. Secondly, any partner at any point of time can apply for dissolution of the partnership. These could be detrimental to the partner who wishes to continue with the business.
Therefore, it is essential that all the partners know about the benefits and the drawbacks completely, before venturing into a partnership.
Also known as LLC (Limited Liability Company), this is the most commonly used form of business entity by Singapore residents. This option safeguards the directors and the shareholders from liabilities compensation. The liabilities remain limited to the extent of capital they have invested in the company. Even the transfer of ownership is simple. The ownership be can changed or transferred easily at any time just by issuing additional share or transferring shares.
The finance lending institutes like banks also prefer lending money to this type of business structure, because these types of companies have independent legal existence. Therefore, it becomes easier to raise capital and expand its existence. In addition, the ownership of the business can be transferred by inheritance, or ownership can be transferred without disrupting the ownership by the sale of stock.
Lastly, an LLC increases credibility and communicates seriousness, tenability, and integrity to its customers and clients.