Setup A Seingapore Company: What Are The Advantages?

By Author: Diane Paz
Total Articles: 172
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A business structure determines the relationship of an entrepreneur to his business. For example, a shareholder and his company are two separate entities which means that the former enjoys limited liability, while a sole proprietor is legally liable for all the debts and losses of his business.

While there are several business structures, most bona fide entrepreneurs believe that a Singapore company (also called as corporation in other countries) provides the most advantages especially in terms of asset protection, developmental and tax incentives, and limited liability.

Meanwhile, businessmen planning to form a Singapore company will enjoy these advantages:
Perpetual succession of the business

Since the ownership is transferable and tradable, through sales or gift of shares, a company can enjoy perpetual succession regardless if there is a change in management or a shareholder resigns or dies.

The only time a company will cease its operation is when the shareholders and directors decide among themselves to merge with another company or liquidate their business asset.
Limited ...
... liability (or asset protection)

In the event of bankruptcy, shareholders will not lose their personal assets such as houses and cars since they have a limited liability on debts, financial losses, claims, and lawsuits related to their business—unless they have given personal guaranties to the creditors.
Tax benefits

In Singapore, private limited company—which is a type of Singapore company prohibited to sell its shares to the public—enjoys tax exemptions during the first three years of its incorporation.

Tax exemptions include Zero Tax and 50 percent tax break on a company's first S$100,000 and S$200,000 chargeable incomes, respectively.
Easy to raise capital and funds

Most banks and financial institutions see the private limited company as a more professional and stable structure, making it easier for shareholders to raise funds needed for business expansion.

Meanwhile, a public limited company—which is a type of Singapore company that is allowed to sell its shares and debentures to the public—finds it easier to raise funds for business expansion without having to apply for bank loans which may involve high interest rates.
Treated as a separate legal entity

A Singapore company is treated as a separate legal entity, meaning, it can file a lawsuit or be sued, acquire properties, and purchase supplies under its name. With this, it would be hard—if not impossible—for any shareholders and directors to unscrupulously use the business properties for their own means.

AsiaBizServices is the leading Singapore Subsidiary Registration specialists. It has assisted thousand of foreign entrepreneurs form a Singapore Company. Our office is located at Raffles Place, in the heart of the Singapore business district. ("CBD") If you're in our neighborhood and want to discuss any aspect of our service then feel free to come in to our offices during business hours. Appointments are welcome but definitely not necessary.