Incorporating A Singapore Company

By Author: Diane Paz
Total Articles: 172
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When one speaks of incorporating a business, one refers to the process of making a business a legal entity, independent from its founders. Through incorporation, the business organization's leader—be him the chief executive officer or chairman—constitutes a distinct legal entity in the eyes of the law in operating a business. Thus, the corporation alters the way the business is regarded from the law's perspective and the way it should be run.

Just how differently an incorporation of business is run depends on its features and characteristics emerging from its legal status. Among them are taxation, liability, stock offerings, transferability, and uniqueness of a business name.

After the incorporation, the founders are not viewed anymore as the one conducting the business or generating income and creating tax liabilities. Rather, it is the corporation that does all these operations. Corporations have lower tax rates than personal tax rates.

Since the corporation is directly involved in business operations, it is in itself liable for almost all accountabilities, instead of the founder or the entrepreneur. ...
... In all manners concerning liability, the corporation and the entrepreneur have legal limits, however.

Also because of the legal status accorded to a corporation, it can possess and dispose properties by its name. The same thing can be said of its shares, which can be issued to another individual or corporation, or be bought or sold.

In case of death or sale of a corporation, its ownership, together with all liabilities and assets are transferred to the new owner or proprietor without much ado.

One way of knowing that a business organization has been successfully incorporated is the way the business is named—it ends with incorporated or Inc.

Thus, all legal documents including business contracts, bank accounts and checks, invoice and bills bear the name of the business and their registration number.

More than its profitability, entrepreneurs find it self-fulfilling to see their business grows and develops. Expansion of the investor's organization may prove lucrative both on his part and the country's economy. No doubt, businessmen are keen in choosing which nations are the best for investment.

Since 2009, Singapore, which has a population of 4.99 million people from diverse ethnical and racial background, has been named as the easiest place to do business by World Bank's Ease of Doing Business 2010 report. Also from that report, Singapore continues to have the environment conducive to doing successful business.

Evidence to that statement is the composition of its population as provided by the city-state's government. In 2009, 74.2% of its population came from different Chinese linguistic groups, while 13.4% composed the Malays, 9.2% were Indians, and the remaining 3.2% were a combination of Euroasians, Arabs, and other groups.

The procedure involved in incorporating a company in Singapore is designed for the investor's convenience. However, there are guidelines that must be followed strictly for they are a component of Singapore's protection for its investors.

In order to incorporate a company, the following conditions must apply:

- Anybody whether a Singaporean or a foreigner can register or incorporate a company in Singapore.
- The minimum paid up capital amounts to S$1.
- There should be at least 1 director and 1 shareholder. Among the shareholders and directors, a local resident director must be appointed and who must be a natural citizen of Singapore or a Permanent Resident. If such is not the case and a foreigner wishes to be appointed as the local resident director, an Entrepass, Employment Pass or Dependent Pass would be a satisfactory requirement.
- A local business address must be obtained

Asiabiz is the leading Singapore company incorporation specialists. The firm has successfully helped thousands of foreign entrepreneurs aqcuire their Singapore employment pass. When you contact Asiabiz, you will speak directly to a member of our Business Advisory Team, which consists of qualified company secretaries and accountants, specially trained in company formation and registration. Our staff will be delighted to assist you, free of charge, by answering any queries you may have.