Why You Should Employ Corporate Secretary for Company in Singapore?

Posted by Helen Campos on October 12th, 2019

There are certain models of companies that give the promoters a better opportunity to grow. Such company models facilitate the collection of money for the expansion of the company without putting the shareholders at too much risk. Another requirement for most investors when they set up their companies is that it should not require too many formalities to be fulfilled and have stringent regulations to operate.

Singapore is a country that is very favorable to private investors and this has helped many of the people here to do business and flourish. The government has made the formation of companies very easy though certain conditions must be fulfilled for incorporating the company. Depending on what business you are running and its size there are various models of companies that can be formed in Singapore.

Combining Flexibility with Freedom

Though there are many types of companies that can be opened in Singapore, LLP is one of the most favored companies for the local people who wish to join together to form a company. LLP stands for limited liability partnership and as the name suggests it is a company that is formed with the cooperation of partners. The maximum number of partners that an LLP can have is limited to 20. This type of company is mostly favored by professionals of similar nature wanting to work together.

The type of company offers the flexibility of limiting the liabilities of the partners like in that of a private limited company without the strict compliance requirements. Unlike a sole proprietorship, LLP offers great scope for expansion. The partners don't have to worry about their assets being affected in case the company suffers a loss or is in debt. However, the partners can be punished by others in case of any conduct that results in a loss for the other partners.

When compared to a private limited company it is cheaper to set up and register LLP in Singapore while giving the facility for raising funds easily. The partners can contribute more funds without exposing their assets but cannot actively participate in the activities of the company. The LLP doesn't have the burden of following the strict regulations as a private limited company has to do.

Forming a Singapore Company

Businessmen from Singapore and outside will find setting up in Singapore very easy if they partner with a good consultant who has experts in incorporation work. These consultants will ably guide the investors on everything related to starting a company here. Though they will be able to walk you through the process it is better you also know a little about it. This will help you to understand the procedures better.

Every business in Singapore must be incorporated and the process starts with reserving the company name. The name of the company must be chosen carefully because it is by that name your products and services will be known later. The name must be registered with the ACRA and the process will hardly take a day. The agency you appoint for incorporating your company will do a name search to confirm whether your preferred name is available.

Once the name is registered the next step is to submit the incorporation papers to the ACRA. The documents must be signed by all the shareholders and directors of the company. The incorporation process will be completed in a couple of hours and you will receive a confirmation copy by mail from the authorities. The agencies will issue the share certificates and provide the company seal. They will also help you open your bank account in Singapore. 

Reducing Your Tax Burden with an Offshore Company

An offshore company is one that is formed at a place that is not the home country of the shareholders or directors. There are many benefits from opening an offshore company in some of the countries where the financial regulations are lax and tax rates are very low. Offshore company formation is favored by many businessmen for the reduction of tax burdens and the protection of assets. Those who operate international businesses are greatly benefited by having their operation base in these countries.