Setting Up a Business In Singapore
Not surprising that Singapore is a highly established country as its Laws are so structured that they draw in business people from around the globe.
Rather it is versatile and is rather useful for any upcoming or currently functional company. A few of its benefits are:
1. One can form a business with even just one person as the Investor and one as a Director. The same person can be a shareholder in addition to the Director too. The very best part of the law is its facilities for forming a company with cent percent foreign ownership or shareholding as it is usually called.
2. Another special law is that the stated Singapore Private Limited Business is thought about as an independent legal entity, which can be very handy particularly when there is a loss in the company. In such a scenario, the shareholders and directors individual possessions would not be connected to the company for clearing its debts. Just they would be at loss in their shares and more. Hence, it is likewise described as a Limited Liability Business. This is a super useful law as the shareholders are rather protected when it pertains to their personal possessions and identity.
3. Apart from this, such a law enables the business to be in a consistent state with the very little hindering of its operations due to a change in directorship or investors.
4. To woo more investors to develop their operations in Singapore and to enhance the business and economy of the nation, the Government of Singapore provides the benefit of Tax Exemption to freshly formed businesses, regardless of that they are local or foreign business.
5. To balance the act and be on the safe side, they have a law, which states that, the foreign entities and individuals can not register their company by themselves. However at the very same time, not to limit the foreign investors from doing business in the country, they have provided an alternative. Registration can be done through an Expert Registration Company that is recognized by ACRA (Accounting and Corporate Regulatory Authority).
But setting up of a Singapore Private Limited Business has some disadvantages too like high cost of setting up and finalizing the process, stringent guidelines and policies and so on. However, they will certainly not weigh down the huge benefits.
The standard requirements for establishing of a Personal Limited Company are that
1. At least 1 Director needs to be a Singapore resident/ Singapore Permanent Citizen/ or an individual with a Singapore work pass. He needs to be above 18 years.
2. A Business name that needs to be distinct and have no resemblance with any of the company registered under ACRA, Singapore. The accepted file is to be attached.
3. Interestingly, the minimum paid up capital is as low as $1.
4. A local registered address for communication and where the daily business operation is to be done.
5. And once the business is registered, a certified Company Secretary needs to be designated within six months.
With all these facilities and versatilities, no doubt there would be more company entities registering as Private Limited Companies in Singapore.