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Singapore Company Incorporation- Registering a Singapore Private Limited Company

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Singapore Company Incorporation- Registering a Singapore Private Limited Company Powered By Docstoc
					?The private limited company is the most common type of company that is
incorporated in Singapore as it provides countless of benefits to both local and foreign
businessmen especially in terms of taxation, limited liability, and bankruptcy
protection.

One of the most notable features of a Singapore private limited company is that it
exists as a separate legal entity from its shareholders which means that they are not
personally liable for the companys debts, losses, and liabilities.

Tax Benefits and Advantages

Newly incorporated companies, regardless if these are owned by local or foreign
shareholders, enjoy zero tax on their first S$100,000 chargeable income and another
50 percent tax exemption on their next S$200,000 within three years of their
registration.

Meanwhile foreign companies can also enjoy such tax benefits if they will register a
subsidiary office which is essentially a private limited company which just happens to
be owned by foreign shareholders.

(Note: Foreign parent company may be the sole shareholder of its own subsidiary
company. However, this business structure is also allowed to have a maximum of 50
shareholders regardless if they are local residents or foreigners.)

Another advantage of a subsidiary company is that it enjoys all the local tax benefits
being incorporated in Singapore.

Important Things Before Incorporating a Singapore Company
Company name. Businessmen should apply for the approval of their company name
to the Accounting and Corporate Regulatory Authority (ACRA) before incorporating
their business.

Shareholders. There should be at least one corporate or individual shareholder.
Meanwhile, the Singapore Companies Act allows a maximum of 50 shareholders in a
private limited company.

Resident directors. There should be at least one resident director who must have a
residential address in the country. This individual may be a local resident or a
foreigner who holds Employment Pass, EntrePass, or Dependant Pass. (Note:
Directors can also be shareholders too.)

Company secretary. Within six months of incorporation, a company should appoint a
qualified secretary who must be a resident in Singapore.
Paid-up capital. The minimum paid-up capital or share capital is S$1 which may be
increased anytime after incorporating a company.

Registered address. A company should have a registered office address in Singapore
which must be a physical address and not a PO Box.

Memorandum and articles of association. A company should apply for this which will
state its nature of business and the rules governing its internal management.


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