AsiaBiz Explains Singapore Company Incorporation

							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/