Incorporating A Company In Singapore
Advantages Of Incorporating A Company In Singapore
Singapore is one of Asia’s and the world’s financial and commercial hubs. The Singapore government has put in place a system which allows both local and international businesses to thrive side by side as they cater to their respective markets within the country and beyond.
Singapore hosts diverse types of business entities today, one of which is the corporation. Incorporating a company in Singapore into a corporation does bring a host of benefits which businesses could reap.
Incorporating A Company In Singapore: Overview Of A Corporation
What is a corporation? A corporation is a separate legal body, duly recognised as such by the law, which has the capacity to, among others, acquire and sell properties, enter into agreements, as well as file legal suits under its name. As such, it is considered as a separate entity from its incorporators, and it does have corresponding tax duties to the government.
While business owners do have to comply with more taxes and more administrative duties than in other business entities, a corporation’s inherent legal qualities serve to cushion these extra responsibilities.
Benefits Of Incorporating A Company In Singapore
Once a business is incorporated, it gains a perpetual existence that can outlast even its original incorporators. This is also possible because shares in a corporation can be readily transferred or sold. In some instances, they can be passed on to an incorporator’s family member as well. Furthermore, a corporation’s incorporators are also free from legal suits the corporation might find itself in, owing to its recognition as a separate legal entity.
These qualities make corporations very attractive for investors, which in turn proves beneficial to the business body since it could easily raise capital with the right investments. A publicly listed corporation, for instance, could put up common shares for public ownership, which is a good way to raise capital and eventually raise the value of the business.