Business In Singapore
Singapore is fast becoming the business city of choice. Its economy has been defined by its position as a small country with limited natural resources and a relatively small population, l
ocated strategically in the heart of Asia Pacific.
Excellent business and social infrastructure, political stability and economic ties with other counties has build up Singapore as a truly vibrant, cosmopolitan, and international global business centre.
At the heart of Singapore’s thriving business ecosystem. Singapore is an ideal platform for the meeting of global talents, ideas, funds and businesses.
A well structured Singapore Company/Business Entities are excellent vehicles for you
to join global business market.
A Private Limited Company is a legal entity. The Company itself can enter into business transactions and is responsible for the outcome. As a shareholder, your loss is limited to the issued and paid-up capital in the company.
For a new start-up company, the following exemption is given on the company’s normal chargeable income for any of its first 3 consecutive years from incorporation.
Private Limited Companies
Exempt/Deemed Exempt Private Limited Companies
Annual accounts must be submitted to Accounting and Corporate Regulatory Authority (ACRA) within 18 months from incorporation and subsequently every 12 months.
Sole proprietorships and partnerships are not legal entities in which it cannot sue or be sued in its own name and it cannot own or hold property. A sole proprietorship is a business owned by an individual or one company. The owner must be a local resident in Singapore. If the owner is foreigner, a local manager must be appointed.
Partnerships can have 2 or up to 20 partners. Once exceed 20 partners, it must be incorporated as a Company under the Companies Act. At least one of the owners must be a local resident in Singapore.
The main advantage of such businesses are that they are easy to maintain with less administrative duties to comply.
The disadvantage is that a sole proprietor is personally liable for the entire business whereas in a partnership, all partners are jointly liable for the partnership debts and the liability is unlimited. Profits are taxed at personal income tax rates.
Limited Liability partnerships (LLPs)
A LLP is a partnership with limited liability. It is a legal entity and can enter into contract and hold property. It combines the benefits and flexibility of a partnership with that of private limited companies.
The main advantages are that the personal assets of the partners are protected. Owners are not personal liable for the wrongful acts of other owners but can be personally accountable for debts and losses resulting from their own acts. Any changes to the LLP do not affect its existence, rights or liabilities.
Foreign companies that are keen on exploring the viability of doing business in Singapore may wish to set up a Representative Office (RO). An RO has the benefit of allowing a foreign company to test out the business environment in Singapore before committing to any investment decisions. However, foreign companies wanting to maintain long term operations in Singapore will be required to incorporate as legal entities with the Accounting and Corporate Regulatory Authority (ACRA) in Singapore.
An RO is a temporary facility provided to foreign companies to test the business environment in Singapore. It must confine its activities to market research, feasibility studies and liaison work on behalf of its parent company. The RO must not:
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