A Singapore Private Limited Company is the most popular business entity in Singapore. It is a separate legal entity from its directors and shareholders that grants partners limited personal liability. You can be sued under your own name, you can own property, and you are eligible for local tax breaks and incentives. The benefits of these types of companies are high and the local government encourages growth from foreign investors.
In Singapore, this type of business entity has a minimum of one shareholder and a maximum of 50. There are several advantages to running this type of business entity. One of the main advantages is that the shareholders are not personally responsible for the debts and losses of the company. Another is that ownership of the company can be transferred and additional shareholders can be named. Furthermore, if one of its shareholders dies, the company does not cease to exist because it is its own legal entity. Financially, a Singapore limited liability company is advantageous because it is entitled to tax benefits.
Running a business in Singapore is also advantageous because there is already an established driving business district there. The infrastructure is conducive to traveling efficiently through the area. There are intricate roads and a good public transport system. Singapore also has a strong communications infrastructure, which makes it easy for you to quickly develop your business. Also, the government is inviting new companies there as they see it as beneficial for the socio-economic development of the country.
Business entities are governed by the Singapore Companies Act, which imposes penalties on companies that violate its terms. Additionally, each company must submit annual returns and Directors’ reports. Every company must also have at least one resident director and one company secretary. Also, operating costs are often higher because the Singapore Companies Act has higher disclosure and administration requirements. Directors must also disclose their interest in the company’s shares, contracts and obligations.
To create a Singapore private limited company, registration documents require a company name, a minimum of one director who must be a Singapore resident, EntrePass holder, Employment Pass holder or Dependent Pass holder, shareholders, a secretary of the company within six months of incorporation, paid-up capital of at least S$1 (one Singapore dollar) and a registered address. This type of company is subject to taxation, but the benefits are high. Your company will pay less than 9% on the first $300,000 of annual profit, followed by a flat rate of 17%. There are also no taxes on capital gains or dividends in Singapore.
This type of company is composed of a minimum of one shareholder, a company director and a company secretary. They must also have a registered office in the country. The good thing is that you can find many companies that will help interested individuals and companies to set up a business in Singapore. These companies specialize in the requirements of the Singapore Companies Act and local specifications and requirements.