Singapore Company Incorporation Procedures
Talking about business incorporation is about the process of making the business
as legal entity free from its creator.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. Therefore, the corporation is different in a way that business is being perceived and also different in a way that is should be managed.
The manner in which the incorporation should be run is relative to the attributes and features arising from the 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. But rather, the said operations are done by the corporation. 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 accountability, instead of the founder or the entrepreneur. In all manners concerning liability, the corporation and the entrepreneur have legal limits, however.
Having possessed a legal status, the corporation is allowed to acquire and dispose properties using 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.
It is satisfactory for an entrepreneur to see their business develop and grow aside from looking at the present profit. When the business of the entrepreneur is expanding it entails productivity not just to the owner but to Singapore economy in general. No wonder, choosing business locations for investments are carefully done by entrepreneurs.
Presently, Singapore's population is 4.99 million people from diverse ethnicl and racial background since 2009 and according to reports it has been considered as the easiest place to do business by World Bank's Ease of Doing Business 2010.From the said report, Singapore has continually uphold the reputation by continuing to provide a favorable business environment conducive to success.
Evidence to that statement is the composition of its population as provided by the city-state's government. Apparently, various nationalities comprise the population as follows--74.2% came from many Chinese linguistic groups, 13.4% came from the Malays, 9.2% were Indians, and the residual 3.2% were a mixture of Euroasians, Arabs, and other nationalities.
The procedure involved in incorporating a company in Singapore is designed for the investor's convenience. Nevertheless, there are some guidelines that are needed to be followed strictly for the protection of it's investor.
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 for some reasons the foreigner would like to be a local resident director, he/she needs to obtain either an Entrepass, Employment Pass or Dependent Pass.
- Obtaining a local business address is also required.
Singapore Company Incorporation Procedures
By: Diane Paz
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