There are the following types of entities available for company formation in Singapore:
· Private Limited Company
· Public Limited Company
· Public Company Limited by Guarantee
· Subsidiary Company
· Branch Office
· Representative Office
· Sole Proprietorship
· General Partnership
· Limited Partnership
· Limited Liability Partnership (LLP)
Choosing the perfect type of legal entity for opening company in Singapore is essential because a lot depends on this decision: which taxes you are going to pay, positioning of your business in the eyes of your clients (your image), the amount of paper work your Singapore company setup requires, your abilities in borrowing money and expanding your business, and your personal liability.
These issues are crucial for your company incorporation in Singapore; that’s why it’s important that you get a valuable advice for your decision and competent assistance on the go. Our One Visa team of experts has delivered Singapore company incorporation services for years, and we are ready to offer our unique expertise in business incorporation in Singapore to ensure your company will achieve the maximum of your goals. Learn how to setup company in Singapore with minimum hassle and in the most efficient way! How to Register Company in Singapore
The process of incorporation of company in Singapore may seem complicated due to the variety of legal entities. We will guide you through the most advantageous legal entities available for registering a company in Singapore and give you better understanding of the requirements your company must meet to be considered. Each of these business structures imply different tax regimes and regulatory. Make sure you incorporate a Singapore company in the most beneficial way. The main business entity types available for business incorporation in Singapore are:
1. Limited Liability CompanyLLC is a company that implies the liabilities of the owners to be limited to the assets of the company (to the amount of share capital). Personal assets of LLC owners are protected from business liabilities. LLC in Singapore has such types:
1.1. Private Limited CompanyIt is a LLC where less than 50 persons hold the shares. These shares aren’t available for general public. Most entrepreneurs who want to incorporate a company in Singapore have it registered as private limited companies. Such companies end with Private Limited or Pte Ltd. For instance, our company One Visa Pte Ltd that provides Singapore company incorporation services is also incorporated as a private limited company. Either individuals or corporate businesses (or both of them) can be shareholders at the private limited company.
This business structure is the most flexible, scalable and advantageous type of Singapore company incorporation. For registering company in Singapore, serious entrepreneurs prefer private limited company to other business entities such as sole proprietorship or limited liability partnership due to these advantages:
- If your want to register company in Singapore with its own legal entity separated from the company’s shareholders and its directors, a private limited company is a great option. This gives your setup company an opportunity to be more flexible: to buy more assets, enter into contracts, pile debts on debts, sue and be sued separately from its shareholders.
- The liability of your new company in Singapore is limited, and in case of debts, the contribution of members is limited to amount they previously agreed.
- The private limited company outlives its shareholders. If you want to incorporate company in Singapore that wouldn’t depend on the membership of any of its shareholders, private limited company is a right choice. The existence of such company continues even after their death, insolvency, or resignation.
- Open a company in Singapore as private limited company to enable it to easily raise its capital by issuing more shares to its shareholders or by drawing in new ones. Investors (the same as banks) prefer to deal with companies which business assets are separated from personal.
- If credible image means a lot for you when you register a company in Singapore, choosing private limited company would be a right choice. This way your business will look more appealing to clients, suppliers, and bankers as it is aimed at growing and expanding.
- When you think over your company incorporation, provide the possibility to change its owner. The ownership of private limited company can be easily transferred by whole or partial selling of its shares. The ownership can also be changed by issuing new shares to a new investor.
- You can benefit from Singapore tax policy if you are setting up company in Singapore as private limited company. For profits up to SGD 300,000 the corporate tax rate is below 9%. For incomes above SGD 300,000 the tax rate is capped at 17%. This structure of Singapore business incorporation frees you from capital gains tax. Shareholders can get dividends tax free, once the profit was taxed at the corporate level.
1.2. Public Limited CompanyIf you want to open company in Singapore with shares open to general public, public limited company is the way to go. Since you are empowered to raise funds from the public, this type of Singapore company formation works under stricter rules and regulations. This type of incorporation a company in Singapore works well for really large businesses.
1.3. Public Company Limited by GuaranteeThis type of Singapore company formation is perfect for businesses being created for non-profit purposes. To learn more about Public Company Limited by Guarantee, please contact our Singapore company registration visa service for free consultation. Our experts will help you to choose the best legal entity for your setup company in Singapore in order to fulfil your company’s perfect mission. The next options will be for those well-established foreign businesses that wish to spread their presence by opening a company in Singapore.
2. Subsidiary CompanyIf you are an owner of medium-sized foreign business, consider starting a company in Singapore as subsidiary company which is the same as a private limited company, but with a parent company as its shareholder. Taking to consideration all benefits of private limited company, this type is the most winning for Singapore company incorporation.
3. Branch OfficeBy choosing this type of Singapore company registration, you can set up a company in Singapore as an extension of its parent company. It doesn’t act separately as an entity, and all liabilities of the branch office belong to its parent company.
4. Representative OfficeThis form of Singapore company registration acts as a temporary office for various marketing research activities. It doesn’t possess any legal status and doesn’t take part in activities aimed at profit generating.
Which Type of Singapore Company Incorporation Are You to Choose?
As you can see, the types of business structures vary and different situations of incorporating company in Singapore require individual approach. Please contact One Visa consultants to learn about other requirements meeting which is essential for successful company registration in Singapore. Not all business ideas find their implementation in Singapore because of lack of competent advice. Our business experts are ready to share with your key factors that simplify company registration. Join our free assessment today to learn how to open company in Singapore without hassle.