AsiaBiz Explains Singapore Company Incorporation
Singapore’s leading business registration firm AsiaBiz Services has explained that incorporation is the process of forming a new corporation that is a type of business structure treated as a separate legal entity from its owners.
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AsiaBiz Explains Singapore Company Incorporation By Jacqueline Chia Singapore’s leading business registration firm AsiaBiz Services has explained that incorporation is the process of forming a new corporation that is a type of business structure treated as a separate legal entity from its owners. “As a business that stands on its own as a legal entity, there are many advantages of Singapore company incorporation,” the firm added. The most notable benefit of corporation, or more commonly referred as company in Singapore, is that the business enjoys perpetual succession since its existence does not depend on the shareholders and directors. In fact, its ownership can be traded and sold and additional shareholders can be invited without affecting its existence as a business. “A company can enjoy perpetual existence unless if the shareholders decide among themselves to liquefy their business or if they resolve to merge with another corporate entity,” AsiaBiz said. Meanwhile, there are two types of Singapore company: the private limited company which consists of one to 50 shareholders who must raise capital and funds among themselves, and the public limited company which may consist of more than 50 shareholders and is allowed to invite the public from injecting money through the selling and trading of shares and debentures. When it comes to raising funds for business expansion, AsiaBiz believes that a public limited company has more advantages than the private company since it is allowed to sell its shares to the stock market. However, the business registration firm still believes that a private limited company is more advantageous when it comes to tax incentives and exemptions. “Under the Singapore Companies Act, a private limited company will receive a Zero Tax and 50 percent tax exemption on its first S$100,000 and S$200,000 chargeable income, respectively, during its first three years of Singapore company incorporation,” AsiaBiz said. Regardless of the type of Singapore company, the business registration specialist believes that this business structure is the most advantageous when it comes to asset protection compared to other business formation. For instance, shareholders are not personally liable for all the claims and lawsuits, financial losses, and debts related to their business. With this, their personal assets cannot be liquidated to pay off the “unsatisfied” duties of their company. This is not the case in sole proprietorship and partnership in which the owners have unlimited liability in which their personal assets are not protected from the debts and financial losses of their business. AsiaBiz is a company that provides Singapore Company Formation services to local and foreign entrepreneurs and investors and offer consultation regarding the immigration and taxation law, accounting and book keeping requirements, and other compliance matters stated under the Singapore law. For more information: AsiaBizServices.com address: 120 Telok Ayer Street Singapore 068589 phone: +6563034614 website: http://www.asiabizservices.com/