Set Up a Company in Singapore: Go for Private Limited Company
As an eager entrepreneur looking to set up a company in Singapore, you can choose to register a Sole Proprietorship, Partnership, or a Private Limited Company. Here, you have to tread carefully, as your choice can affect the tax amounts for your new business.
Search for Combo Incorporation Packages
The majority of local and foreign entrepreneurs hire company secretarial services or small accounting firms in Singapore for the task. Some of these firms offer combo incorporation packages which render multiple services for the cost of one. These firms have experts that are familiar with the steps and obstacles in the task and are quite handy in solving last-minute problems.
Private Limited Company Limits Your Liability
The private limited company (Pte Ltd) is a highly powerful and most favored business structure for the Singapore company registration. It is dynamic, scalable, and flexible. As per the Company Act of Singapore, it is a full-fledged legal person & and has a separate identity from its owners. It has perpetual existence and keeps on existing unless it is dissolved.
Corporate Income Tax
Like a natural-born person, a Pte Ltd pays its taxes. The rate of corporate income tax is in the range of 0%-17%. Singapore authorities offer the tax incentive, rebates, and exemptions to the resident companies which brings their overhead costs down. A Pte Ltd can sue and be sued by others. It can buy property and real estate for its own use.
Limit Your Liability
Most importantly, the Pte Ltd limits the liability of its owners (shareholders) to the amount they have used by its shares. After paying its taxes, a Pte Ltd can disburse tax-free dividend to its shareholders.
Registering Business Firms
Personal Income Tax
On the other hand, the owners of the Sole Proprietorships and Partnerships have to pay personal income tax on the income from their businesses. The rate of personal income tax is in the range of 0%-22%.
These business firms have no legal identities which put their owners' personal property at risk. The owner personally gets sued if there is an issue. That is why secretaries from Company Secretarial Services advise use of these legal structures for businesses where the risks are minimal.
Entangled Personal & Business Finance
Their owners have to buy properties and real estates, deemed necessary for business use, in their own name. Separating personal and business finance becomes difficult.
Before you set up a company in Singapore, it is highly recommended to have a discussion about your needs with an advisor from a reputable corporate services provider. These are experienced and qualified professionals. For a small fee, they can iron out any wrinkle in your planning or the execution of the task.Contact us:
SBS Consulting Pte Ltd
High Street Center,
#17-02, 1 North Bridge Road,
179094 - Singapore
Phone: +65-6536 0036