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?