Advantages Of Company Registration
A venture formally enters the competitive market once it has been registered. Business registration comes with a set of responsibilities including state law compliance, never-ending market competition, and the challenges of running an institution on a daily basis without fail, not to mention making a profit out of it.
Unlike other natures of businesses, a registered company enjoys a host of benefits primarily given by law. Essentially, registered companies and their assets have limited liability due to their shared ownership scheme. They are also entitled to certain tax benefits which the state provides as a form of assistance in its first few years.
Company Registration: Protecting Assets With Limited Liability Scheme
Registered companies can enjoy the law’s protection of its assets because liabilities are limited only to the amount of capital that a company’s incorporators have poured in. For instance, if a shareholder owns $1,000 worth of stocks in a company, he or she cannot be liable for anything higher than that. In case of liabilities, assets cannot be sequestered by creditors as well.
The shareholding scheme of corporations is in itself beneficial. This means that companies can source funds from public shareholders through stock options, making it more fluid and stable compared with single proprietorships and partnerships, which also do not enjoy the limited liability scheme that registered companies enjoy. Shareholding has always been one of the surefire ways to success for any business, which is why most big companies offer up a sizeable portion of ownership in the forms of stocks.
Company Registration: Entitling Companies To Substantial Tax Benefits
In Singapore, companies who undergo company registration enjoy tax deductions from the Inland Revenue Authority of Singapore (IRAS). These tax relief schemes are enforced to help start-up businesses cope with high costs of production and operations. Under Singapore tax law, new companies are entitled to S$300,000 in tax exemptions within its first three years.
For individuals or groups thinking about making that big leap into business, hiring a company that offers company registration services is a great way to start. Through these companies, expert guidance is extended to a new player in the industry, making it more competitive and responsive to its market.