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