Starting A Company In Singapore
Knowing The Basics Of Starting A Company In Singapore
Because of its thriving business environment and rewarding tax incentive scheme, Singapore has become a foremost global business hub in Southeast Asia. According to a statistics released by the Accounting and Regulatory Corporate Authority (ACRA), an estimated number of 25,000 to 30,000 companies are formed in Singapore each year—quite a feat for a small island in Southeast Asia. And with a gross domestic product rising by 9.9 percent in the first quarter of 2012, entrepreneurs should find it reason enough to start a business in Singapore.
The key to understanding how starting a company in Singapore works is by getting yourself familiar with the companies established in the said country. Companies in Singapore mostly come in the form of limited liability companies (LLC), meaning, the company shareholders are limited only to the assets they have with the company. Limited liability companies have three different types: public limited company, public limited company by guarantee, and private limited company, which is the most common of the three.
Starting A Company In Singapore: What Are Private Limited Liabilities Companies?
Private limited liabilities companies are those companies with the suffix Pte Ltd. (Private Limited) attached to their registered names. These businesses are owned by a minimum of two persons and a maximum of 50 persons who are composed of individuals or companies. The shares are not open to the general public which makes it private.
What makes private limited companies advantageous for would-be business entities and entrepreneurs is that the terms are flexible and the shareholders’ personal assets are protected. Shareholders have a fixed share of the amount to contribute should the company fall into debt. The shareholders of a private limited company also don’t have to worry about getting sued should the company fail to fulfill its legal and financial obligations as the company has its own legal identity.
Starting A Company In Singapore – Who Can Help You?
Because of the abundance of businesses in Singapore, a number of consultancy firms are offering company registration and accounting services in Singapore. Such companies will also be able to help you with the company’s transfer of ownership should it be required.