Select Right Business Structure and Incorporate a company in Singapore

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An appropriate business structure is a key to your company's success. Review the features, choose the right structure and incorporate a company in Singapore.

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Presentation Transcript

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They say it is easy to incorporate a business in Singapore. However they fail to tell you the complexities and twists involved in setting up a business in Singapore. To incorporate a company in Singapore the first hurdle you will come across is selecting an appropriate business structure. To a great extent outsourcing the process of Singapore company registration to an external firm is the widely accepted option. However it becomes necessary to understand the different business structures in Singapore before you employ any firm offering Singapore company incorporation services. Selecting Appropriate Business Structure Is Important To Incorporate a Company in Singapore website : www.sbsgroup.com.sg

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Usually foreigners do not require any type of government approval to set-up a new business in Singapore. The city-state allows 100 foreign ownership which makes it the one of the best and preferred location for foreign entrepreneurs to do business. However for incorporating a bank or a financial institution getting an approval from the Monetary Authority of Singapore is a must. Let us check out the different options in business structures that entrepreneurs have for incorporating a company in Singapore. The Various Business Structures to Incorporate a Business in Singapore www.sbsgroup.com.sg

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Singapore offers two major options for incorporated companies Private limited companies and Public companies. A Private limited company is allowed to have as many as fifty shareholders. On the contrary a public limited company does not have such a restriction and can have as many shareholders as it wants. A public limited company is allowed to raise capital by offering shares and debentures to the public. Incorporated companies can be registered by a shareholder with a minimum capital of S1 proceeded by appointment of at least one local director as well as a company secretary. It is all right if the chosen shareholder is either an individual or a corporation. Either of the shareholders is not required to be a permanent Singapore resident. The liability of shareholders is limited to the amount used for purchasing the company shares. Business Structures for Locals Incorporated Companies Limited Liability Companies www.sbsgroup.com.sg

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A Sole proprietorship is the simplest and easiest business structure to incorporate a business in Singapore. Foreign and local entrepreneurs widely prefer sole proprietorship as their chosen business structure. More often investors with less capital and big dreams and investors interested to incorporate small businesses register their business as a sole proprietorship firm. The statutory requirements state that the sole proprietorship firms will have to register all their profiteering activities carried on the daily basis. Please note a sole proprietorship is not considered as a separate legal entity. The owner and his business both are considered as one and the same. The entrepreneur or the owner is held accountable for all the debts or liabilities incurred during the course of business. Sole Proprietorship When two or more entities want to work together then registering a business as a Limited Liability Partnership LLP is the best option. Under this partnership entity ACRA identifies partners as different personalities who can sue or be sued. Additionally the partners are allowed to own property in their individual names. In an LLP company partners are offered an option to function either independently or as a combined entity. Please note although the minimum number of partners required to form an LLP is two there are no limitations on the number of partners an LLP can have. Limited Liability Partnership www.sbsgroup.com.sg

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Limited Partnership seems to be a flexible business structure for entrepreneurs not interested in taking responsibility for business management activities. Such entrepreneurs usually hand over their management of the company to an entirely different entity. The chosen entity can be either an individual or a corporation enjoying unlimited liability. There are more than one general and limited partners in a Limited Partnership firm. Please note if general partners choose to participate in the business function they become liable and their personal assets are pledged. On the contrary limited partners are liable only for the amount they have contributed. Limited Partnership www.sbsgroup.com.sg

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A foreign company acting as the major shareholder can incorporate its business in Singapore in the form of a subsidiary company. A subsidiary is a resident company of Singapore and is regulated by Singapore laws. A subsidiary has a legal status in Singapore therefore is treated as a different company from its foreign counterpart. In this option the liability of the foreign company is limited to the share capital it has invested. Besides the foreign company is absolved from the obligations of debts and liabilities of the subsidiary company. Please note a subsidiary company is a form of limited liability company in Singapore. Business Structures for Foreigners Subsidiary Company Branch Office Foreign companies that do not want to incorporate a separate company in Singapore with a different name prefer to incorporate a branch office. After incorporating a branch office it is possible to carry out business activities under the name of or under the corporate brand of the foreign corporation. A branch office incorporated in Singapore is legally considered as an extension of its parent company. Please note in no way a branch office will be considered as a subsidiary company owned by a foreign parent company. The Singapore Companies Act does not prescribe any special or separate Memorandum of Article of Association MAA for the branch offices. A branch office is free to run its shareholder structure and business activities as directed by the original MAA of the foreign company. www.sbsgroup.com.sg

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A foreign company willing to have its presence in Singapore but not interested to carry out any business activities herein should incorporate their company as a representative office. Singapore corporate environment considers a representative office as an administrative arrangement primarily designed for the non-commercial activities. Therefore a representative office will not have any kind of separate legal status from its parent company. Please note Singapore does not allow a representative office to perform any business activities with the motive of generating revenue and earning profits. Deciding on the right business structure to incorporate a company in Singapore is a tough task. Incorporating a company under the precise business structure is very much necessary when you are intending to do business in Singapore. It is highly recommended that you seek professional help for registering it. The incorporation experts in Singapore will help you understand each business structure along with its obligations and implications in future. Remember the rules pertaining to liabilities and responsibilities are very strict in Singapore. Only incorporation professionals will be able to guide you in the best possible way. They will assist you in incorporating your dream business without much risk. Representative Office www.sbsgroup.com.sg

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SBS Consulting Pte Ltd has years of experience in offering incorporation services with an exceptional expertise. Along with Incorporation SBS also offers a variety of corporate solution services like accounting taxation company secretary XBRL filing. SBS Consulting offers incorporation services with the right blend of traditional and innovative techniques which often surpass its clients expectations. About SBS Consulting Pte Ltd www.sbsgroup.com.sg

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SBS Consulting Pte Ltd 35-B Hongkong Street Singapore 059674 – Singapore Phone : +65 6536 0036 Email : infosbsgroup.com.sg Contact Us www.sbsgroup.com.sg

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