Tag Archives: limited liability company
When you decide that forming a company within Singapore is something that you may want to do, you must decide on what kind of business structure that you choose for your business entity. This decision affects many important aspects of your everyday life; how much you pay in taxes, the perception of your business among your clients, your ability to get a loan, the type and amount of paperwork that is necessary among many other things. Most of the private companies within Singapore are registered as limited liability companies.
A limited liability company (LLC) is a company in which its shares (or liabilities, as you will) are limited (hence the name) by the company’s share capital. A Singapore LLC can comprise of a few different types. One of those is a private limited company. A private limited company is a company in which all of the shares of the company are held by fewer than 50 people. It is the preferred type of company for many entrepreneurs within Singapore for a few reasons. The ease of raising capital, the constant reelection of its members, limited debt liability, and the ease of transferring ownership are some of those reasons.
Another type of LLC is a public limited company. Public limited companies are able to offer their shares to the public and must have more than 50 shareholders in order to be considered as one. They are normally listed on a stock exchange and are held to stricter rules about what it can and cannot do, due to their ability to raise funds from the masses. A public company limited by guarantee is another type of LLC; these are entities used for non-profit purposes.
A limited partnership is also an alternative to setting up a business within Singapore. Within a limited partnership, each partner’s liabilities are restrained to that partner’s investment within the partnership. Finally, a limited liability partnership combines the attributes of both companies and normal partnerships. These are typically meant for carrying a profession in which two or more people are interested in building a practice within a particular field. The owners of this type of business must agree to how various responsibilities and profits are divided, and normally find their own clients based on their profession. Company formation in Singapore can be done at www.company-registration.sg. Great tips: Overcoming Common Jitters of New Entrepreneurs
Singapore is the perfect place for business owners and entrepreneurs to register their offshore companies. The registration process is simple, taxes are low and the workforce is talented.
Before you begin the offshore company formation process, you will need to research the different types of business entities and decide which one is best for you. Similar to the United States, there are a variety of business types that you can register in Singapore.
A Limited Liability Company
A limited liability company is the most popular type of business entity in Singapore.
This type of company is perfect for individuals who wish to form an offshore company because all of the owners are protected from any legal and financial issues that relate with their business. All assets of the owners are separate from the assets of the company.
There are three different types of limited liability companies in Singapore:
- Public limited company
- Public company limited by guarantee
- Private limited company
Each type of business entity offers different advantages. You will need to decide which one is best for you depending on your business needs. A private limited company is often the way to go because of generous tax incentives and the privacy that business owners enjoy.
A sole proprietorship is the easiest type of company to form in Singapore. This type of company also comes with the most risk.
If someone decides to sue the company, the owner’s personal assets are at stake, because the owner and the company are considered to be one entity. Because of the increased risk involved with a sole proprietorship, many business owners choose to stay away from this type of business.
Partnership is similar to sole proprietorship, except two people own the company. Either one can dissolve the partnership at any time by giving written notice. This type of business entity is considered to be very risky as well, and thorough research should be done on it.
Before you decide which type of business to set up in Singapore, you should contact bizcorp.com.sg.
Question to Ponder: Does Offshore Company Formation Have Its Disadvantages?