Setting Up Company
Guide To Setting Up Company In Singapore
Setting Up Company In Singapore – Different Types Of Business
Singapore, having one of the most flourishing economies in the world, is hailed as a lucrative market for businesses. As a huge world trade player, it is easy to see why many investors prefer to register their company in the country. There are several accepted types of businesses in Singapore. There are also different advantages in setting up company types.
An entrepreneur who wishes to register a business in the Lion City can choose to launch a company, a sole proprietorship, or a partnership. Sole proprietorship means the investor can own his or her business alone. And although it is the simplest type, it is perhaps also the riskiest as it is not a separate legal entity, which means the owner and the business are regarded as one. The owner is personally responsible for the liabilities of the business.
For a partnership, at least two persons can co-own a business. It also has no separate legal existence from the co-owners and will terminate if one of the partners dies, becomes incapacitated, becomes insolvent, or simply wants asks for the dissolution of the partnership. There are three types of business partnership in Singapore: General, Limited, and Limited Liability Partnership (LLP).
Just like a sole proprietorship, general partnership holds partners liable for the liabilities of their business. Each of them can also be held personally responsible for the actions another partner. A minimum of two and a maximum of twenty partners are allowed to form this type of partnership. A limited partnership, on the other hand, only holds partners accountable within the range of their investments. And although limited partners are not allowed to participate in the management of the business, they are allowed to share in the cash flow.
LLP protects partners from the liabilities of a co-partner due to the latter’s gross negligence or wilful misconduct. The partners are only responsible for their own actions, and they are protected from any business debts incurred by the LLP. This is designed to suit the needs of service professionals. Co-owners or partners can be a natural person or a business entity.
Setting Up Company – Incorporation In Singapore
Companies in Singapore are business entities that have separate legal personality, and which belong to two main types: private and public. Public companies are split into companies limited by share, which are permitted to raise capital by offering shares to the public, and companies limited by guarantee, which usually are for non-profit causes.
Private companies can be Private Limited Company and Exempt or Deemed Exempt Private Limited Company, which has not more than 20 individual shareholders and is wholly owned by the Government. Private Limited Company is considered the most flexible incorporation type. It is a separate legal entity that can acquire assets, go into debt and legal troubles, and enter into an agreement without sharing culpability with its shareholders and directors, whose liability is limited to their contribution to the company.