A Singapore private limited company is the most popular business entity in Singapore. It is a legal entity separate from its directors and shareholders which gives partners limited personal liability. It can be sued under its own name, can own property, and is eligible for local tax exemptions and incentives. The benefits of this type of company are high, and the local government encourages growth stemming 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 major advantage is that the shareholders are not personally liable for debts and losses of the company. Another is that the ownership of the company can be transferred and additional shareholders can be appointed. Also, if one of its shareholders dies, the company does not cease to exist because it is its own legal entity. Financially, a Singapore private limited company is advantageous because they are entitled to tax benefits.
Running a business in Singapore is also advantageous because there is a thriving business district already established there. The infrastructure is conducive to efficiently traveling around the area. There are intricate roads and a sound public transportation system. Singapore also has a strong communications infrastructure, which makes it easy to develop your business quickly. Furthermore, the government is inviting toward new companies there as they see it as beneficial to the country's socioeconomic development.
Business entities are governed by the Singapore Companies Act, which imposes penalties upon companies which violate its terms. Additionally, each company must file annual returns and Directors' reports. Each company must also have at least one resident director and one company secretary. Also, operational costs are often higher because the Singapore Companies Act has greater disclosure and administration requirements. Directors must also disclose their interest in company shares, contracts, and debentures.
In order to create a Singapore private limited company, the 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 company secretary within six months of its incorporation, paid-up capital of a minimum of 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% for the first $300,000 annual profit, followed by a flat rate of 17%. There are also no capital gains or dividend taxes in Singapore.
This type of company is composed of a minimum of one shareholder, one company director, and one company secretary. They must also have a registered office address in the country. The good thing is that you can find many companies which will help interested persons and companies create a business in Singapore. These companies specialize in the requirements of the Singapore Companies Act and the local specifications and requirements.
If you are considering to set-up private limited company in Singapore, the following site would be helpful for you: Singapore private limited company.