Malaysia Hotline: +603- 2141 8908
Of all the choices you
make when deciding on incorporating an entity in Singapore, one of the most
important is the type of business structure (i.e. legal entity) you choose for
your business. Your decision can affect how much you pay in taxes, image and
perception of your business among your clients and suppliers, the amount of
paperwork your business is required to do, the personal liability you face,
ability to borrow money, and the ability to expand your business.
Limited Liability Company
A Limited Liability
Company (LLC) is a company limited by shares i.e. its liabilities are limited
to the amount of share capital. LLC is a business entity registered under the
Singapore Companies Act and a separate legal entity from its members. In a LLC,
the liabilities of the owners are limited to the assets in the company and
their personal assets are protected from business liabilities.
Public Limited Company
A public limited
company is a LLC that may offer its shares to general public. A public limited
company must have at least 50 shareholders and is subject to significantly more
stringent rules and regulations since they have the power to raise funds from
the public. Usually a public limited company is listed on a stock exchange.
Public limited companies are outside the scope of this article as they are
meant for large businesses.
Foreign Company Registration Options
Foreign companies
wishing to setup a presence in Singapore, have the choice of setting up a
branch office, subsidiary, or a representative office in Singapore.
- Subsidiary Company.
A subsidiary company is a private limited company incorporated in Singapore
with the parent company as its shareholder. For small to medium-sized foreign
businesses, a subsidiary company is the most preferred choice of registration
in Singapore.
- Branch Office. A
branch office is registered in Singapore as an extension of its parent company
and not as a separately incorporated entity. The liabilities of a branch office
extend to its parent company.
- Representative
Office. A representative office is registered in Singapore as a temporary
arrangement for conducting marketing research activities. A representative
office does not have any legal status and cannot be engaged in any profit
yielding activities.
Sole Proprietorship
A sole proprietorship
is the simplest but the riskiest type of business form in Singapore. From a
legal perspective, sole proprietorship is not a separately incorporated entity
and therefore the owner and the business are one and the same. The owner
personally owns all assets and liabilities of the business. There is no
protection of personal assets from business risks and liabilities.
Partnership
The partnership type
of business structure attempts to address the limited-expansion constraint
faced by a sole proprietorship by allowing two or more people to establish and
co-own a business. A partnership firm has no legal existence separate from its
partners.
Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline：603-21418908;
24 hours Hong Kong hotline：852-27837818;
24 hours Hong Kong hotline：86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my