Singapore has always prided itself to being a safe financial haven given its stable and peaceful existence. Therefore, in order to boost its status as a finacial centre, it has become easy and beneficial to form or set up a company in Singapore:
1. Tax exemption for the first 3 years A newly incorporated company will enjoy full tax exemption on the first $100,000 of Chargeable Income for qualifying new companies for the first three years of assessment consecutively
2. Do not mix your personal assets A sole proprietorship or partnership does not accord such benefits at all. In both cases, the individual owners will need to bear any costs of failures or lawsuits, personally. Hence, the main advantage to incorporate as a 'Private Limited' company is to avoid personal liability for debts and in the event of lawsuits.
3. Smooth transfer of ownership The operations of a company will not be affected in the event of an event such as death of an owner which requires a change in shareholding. The shareholding can be easily transferred to another owner.
4. Better standing amongst financial instituitions An incorporated company enjoys better standing in the eyes of the public and amongst the overall business fraternity. Ability to raise funding is another bonus.
The main reason individuals choose to incorporate their business is to protect their personal assets, such as the home, car or family savings. In the event of a lawsuit or should the business fail, Director's personal assets cannot be touched. This protective limited liability feature of a Private Limited Company is not available in a sole proprietorship or partnership, where the individual or partners are personally liable for all business debts.
Therefore, we would encourage anyone wanting to start a business, to consider incorporating or setting up a company, in particular a 'Private Limited' company. Call us to find out more. We would be glad to assist you in making the incorporation of your new company as seamless and smooth as possible. - 15478
1. Tax exemption for the first 3 years A newly incorporated company will enjoy full tax exemption on the first $100,000 of Chargeable Income for qualifying new companies for the first three years of assessment consecutively
2. Do not mix your personal assets A sole proprietorship or partnership does not accord such benefits at all. In both cases, the individual owners will need to bear any costs of failures or lawsuits, personally. Hence, the main advantage to incorporate as a 'Private Limited' company is to avoid personal liability for debts and in the event of lawsuits.
3. Smooth transfer of ownership The operations of a company will not be affected in the event of an event such as death of an owner which requires a change in shareholding. The shareholding can be easily transferred to another owner.
4. Better standing amongst financial instituitions An incorporated company enjoys better standing in the eyes of the public and amongst the overall business fraternity. Ability to raise funding is another bonus.
The main reason individuals choose to incorporate their business is to protect their personal assets, such as the home, car or family savings. In the event of a lawsuit or should the business fail, Director's personal assets cannot be touched. This protective limited liability feature of a Private Limited Company is not available in a sole proprietorship or partnership, where the individual or partners are personally liable for all business debts.
Therefore, we would encourage anyone wanting to start a business, to consider incorporating or setting up a company, in particular a 'Private Limited' company. Call us to find out more. We would be glad to assist you in making the incorporation of your new company as seamless and smooth as possible. - 15478
About the Author:
Incorporating a Singapore company can seem like a daunting task. However, you may contact us at +(65) 9271-7739 or email us at incorporate@maplecommerce.com or visit our website http://incorporate.maplecommerce.com to get expert help on how to incorporate a Singapore company or business.
