The biggest hindrance that normally discourages people from investing is the legal process that is involved in company registration.
There are those nations that would make the process lengthy and stringent at the same time.
Ultimately, this reduces the number of potential investors that would have registered their companies.
Well, with Singapore, everything is very different.
Company registration is something that can be completed in just two days. It is for this reason that Singapore has gained popularity over the past few years as one of the best places to invest in.
Truly, it fits this definition. For the locals, the registration process is even easier.
In relation to the above, the only thing that the local entrepreneurs should do is to link up with a Singapore company secretarial service provider.
This is an important step as it would guarantee that the right legal procedures as followed when setting up and registering the company.
In addition to this, the service provider will take you through some of the various types of companies that you can quickly register.
Depending on the type of business entities, there are certain legal stipulations that need to be fulfilled. The types of companies are briefly discussed below.
Before jumping into the facts, it is important for any Singapore resident to note that engaging in any profit making activity demands that the activity should have ACRA accreditation.
This is the type of business that works best for those Singapore residents that run small businesses.
In case the business has more than two owners, this type of business can then be registered under a partnership treaty.
In sole proprietorship type of business, assets of the organisation are registered fully under one individual.
Regarding liability, the owners of the business are normally considered as responsible.
For example, when the business runs into any foreseeable losses, it is the owner that would compensate for all these. There is no third party that would be held responsible here.
The unlimited liability factor should motivate the owner into transforming the business into a limited liability type.
This is on condition that there are perceived growth expectations in the near future. In partnership business, unlimited liability aspect also affects them as they have to compensate for company losses through their personal assets.
Depending on the nature of the contract, liability would be shared equally among the number of partners involved.
In this type of business, there are two or more individuals involved in the business activity.
The advantage that partners enjoy here is the sheer fact that they are not held responsible for activities of their partners.
The obstacle that could be faced with such a business is that its existence depends on all partners in the business.
In this case, when one partner dies, legally, the partnership terminates.
Moreover, there is also a chance that one of the
partner can dissolve the entire business when they are not interested to continue any more.
This can be discouraging to those partners that had hopes of continuing with the business activity.
It is, therefore, important for partners to understand the pros and cons of a particular type of business before rushing in to sign the contract.
This is one of the most recommended type of business entities that you can engage in as a resident in Singapore.
The best thing about this type of business is that shareholders and directors enjoy the fact that they are not held responsible for any liabilities that the organisation might incur.
In this case, the ‘limited liability’ aspect involves the amount of capital invested in the company.
The organisation would not be liable beyond the amounts invested.
The other benefit is the ease of transfer of ownership. This can be done at any time the legal entity wishes to do so.
Financial institutions that provide for loans such as banks prefer to give financial aid to limited liability companies.
This is because these companies enjoy the benefit of existing as a legal entity.
As a result, expansion of the business and raising of capital is not a difficult process. As pointed out above, transfer of ownership is also very easy.
This can be done even through inheritance. Such transfer does not in any way disrupt the ongoing business activities.
From the above information, you ought to settle for the best type of business that is tailored to your needs.
Please keep in mind that you can talk to our company secretarial service team for further assistance.