Businessmen and investors are constantly looking for new initiatives and investment opportunities in a world brought together by technology and swift transit. A market that has repeatedly proven to be a very successful market in Singapore. And, while the tax system and geographical position of the country contribute to the country’s prosperity, so does the ease with which a person or corporation can establish a business.
So, what possibilities do potential investors and businesses have in terms of Singaporean companies? HeySara, a trustworthy corporate compliance solution provider, gives the relevant information in this post.
Company Types in Singapore
In the country, different company structures are permitted. The investors or stakeholders must decide on the optimum business structure based on the scope of the firm and the expected scale of activity, among other factors. Learn more about choosing the right business structure in Singapore.
Accounting and Corporate Regulatory Authority (ACRA), as defined in Chapter 50 of the Singapore Companies Act, is the regulatory agency in charge of the incorporation of all new enterprises.
Furthermore, each company structure chosen has its own set of financial consequences, liabilities, and tax duties. All of these information must be considered before making a final decision.
The following are the several types of Singaporean corporations, as defined by Singapore law.
The Limited Liability Company
Based on our research and expertise providing corporate compliance services, this is the most popular business structure. It falls under the umbrella of a limited liability business.
A Singapore private limited corporation has the following characteristics:
- The number of company owners might range from 1 to 50.
- An individual must be over the age of 18 to be considered a stakeholder.
- A private limited business has a legal position distinct from its owners.
- The firm has the ability to sue and be sued, as well as purchase property in its name.
- Because it is not bound to any shareholders or corporate owners, the company lives in perpetuity.
- The phrase Private Limited or the abbreviations ‘Pte Ltd.’ must appear in the company’s name.
A private limited company’s characteristics, particularly its unique legal position, make it a popular choice among both locals and foreigners.
Tax breaks are another reason why new businesses favour this form. Companies can receive a complete tax exemption for the first $100,000 of taxable income and a 50% exemption for the next $200,000. This exemption is valid for the first three years of regular business activities.
Limited by Shares Public Company
A public corporation is a sort of limited liability company (LLC), but the key distinction is in its ownership structure and the firm’s capacity to generate money through the issuance of shares or debentures.
A public business limited by shares has the following characteristics:
- The number of shareholders/company owners may exceed 50.
- Shareholders are subject to limited liability.
- Can issue public shares and debentures to raise finance.
The number of shares made available to the public must adhere to the guidelines outlined in the Singapore Companies Act.
Because of the configuration and composition of such a firm, it is appropriate for major businesses that want to conduct large-scale operations.
On the stock exchange, public firms limited by shares can be listed. Such businesses are known as “listed firms” in Singapore. However, before issuing any shares to the public, such a business must file a prospectus with the financial regulatory authority body, the Monetary Authority of Singapore, or MAS.
While it may appear to be a simple process, establishing a company in Singapore requires some effort. HeySara provides corporate compliance services. All of our services are reasonably priced, making them accessible to people of all income levels.
Limited by Guarantee Public Company
This corporate structure is seen to be excellent for organisations whose primary operations are for non-profit purposes.
Some characteristics of such a corporation include:
- Members are the owners/shareholders of a company.
- Members are not needed to contribute capital, as in other company arrangements.
- Members’ liability is limited and specified in the Memorandum of Association.
Clubs, trade groups, professional societies, and religious and humanitarian organisations are examples of organisations founded with this sort of corporation structure.
Singapore’s Registration Procedure
The procedure for forming a private company is similar to that of forming a public limited company. While the intricacy may be a little more complicated, the following are the main procedures for forming a company:
1. Choosing a Company Name
2. Drafting and signing of the Articles of Association and Memorandum of Association
3. Adherence to Accounting and Corporate Regulatory Authority (ACRA) standards; primarily submission of required papers
4. Tax registration and Goods and Services Tax filing services
5. Social security registration
While detailed and useful, the information in this article is not a comprehensive guide on incorporating a business in accordance with Singapore law. HeySara, a renowned service provider known for comprehensive and personalised business compliance solutions, is a good place to start.
Recognizing the significance of technology in the twenty-first century, we incorporate digital tools and resources to provide our clients with accessible and quick access/retrieval of documents. HeySara is the best-positioned organisation in the region for company incorporation, taxation, secretarial services, and general compliance.
Contact us to receive an estimate for our corporate compliance services. With HeySara as your partner, you are guaranteed complete consumer pleasure.