subject: Information on Company Incorporation Singapore [print this page] Information on Company Incorporation Singapore
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.
Just how differently an incorporation of business is run depends on its features and characteristics emerging from its legal status. Example of which includes taxation, stock offerings, liability, transferability and diversity of the name of the business.
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. In addition, corporations enjoy a significantly lower tax rates than that of personal tax.
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.
Also because of the legal status accorded to a corporation, it can possess and dispose properties by its name. It also holds true to acquisition or selling shares issued by another person or corporation.
In instances such as death or sale of a corporation, the ownership as well as all the assets and liabilities of the corporation is directly handed over to the entrepreneur who purchased or acquired the corporation in whatever legal means.
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.
Therefore, the name of the business and registration number must be placed in all the legal documents of the business such as invoice and bills, bank accounts, checks and business contracts
It is satisfactory for an entrepreneur to see their business develop and grow aside from looking at the present profit. Expansion of the investor's organization may prove lucrative both on his part and the country's economy. No wonder, choosing business locations for investments are carefully done by entrepreneurs.
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.From the said report, Singapore has continually uphold the reputation by continuing to provide a favorable business environment conducive to success.
Composition of its population as provided by the city-state's government affirms the validity of the statement. 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 design of the procedure involved in incorporating a company in Singapore is made in such a way that is convenient for the investors. However, there are guidelines that must be followed strictly for they are a component of Singapore's protection for its investors.
The following conditions are needed in order to incorporate a company in Singapore:
* Anybody whether a Singaporean or a foreigner can register or incorporate a company in Singapore.
* For only a minimum paid up capital of S$1, one can already incorporate a company in Singapore.
* There should be at least 1 director and 1 shareholder.A local resident director who must either be a natural citizen of Singapore or one who hold Permanent Resident must be appointed among the shareholders and directors. 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.
