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. Separation of personal assets A company is a separate legal entity and therefore is separated from the shareholders. This is the main reason individuals choose to incorporate their business in order to protect their personal assets in the event of a lawsuit or business failure. 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. Ease of succession planning In the event of death of a shareholder, the shareholding or ownership of the company can be easily transferred to another. This prevents any disruptions in the running of the business itself.
4. Credibility in the eyes of your clients An incorporated company enjoys better standing in the eyes of the public and amongst the overall business fraternity.
Incorporate a businesses to protect your personal assets, such as family, car or family savings. In the event of litigation or business failures, the personal assets of directors can not be touched. This limited liability protection is a key characteristic of the private limited liability company, and this protections is not available in sole-proprietorships or partnerships, where the individual or partners are personally responsible 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.
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.
