4 Practical Reasons You Should Set Up Your Private Limited Company in Singapore
Singapore is a great business destination due to a number of reasons. Read this article to know the benefits associated with starting a private limited company in Singapore.
Singapore is known as the best place where you can start and grow your company. A large number of companies which are registered in Singapore are registered as private limited companies. The company incorporation services and the process is much easier in Singapore due to different reasons. A private limited company exists on its own and it is separate from the shareholders of the company. The shareholder will not be liable to any losses by the company beyond what they have invested in the business.
In this article, you are going to learn reasons why you should set up your private limited company in Singapore.
It Has a Separate Legal Identity
In Singapore, a private limited company has its own legal identity hence it can be sued or it can sue. Liability is limited thus if the company gets into debt, the contribution of the shareholders will be limited to what they invested in the business. As an investor or business owner, you do not need to close down the business when you have incurred losses.
Also, the number of shareholders required for the company is low. The minimum shareholder requirement is one meaning that you can still survive in business if you have gone through bankruptcy.
Lower Taxation
As an economy, Singapore has a 17% tax which makes it attractive to the investors from different locations in the world. Another great benefit about the tax system in Singapore is that income sourced from outside Singapore is not taxed.
The capital gains are not taxed in Singapore which means that investing in Singapore is cost-effective. The tax system used in Singapore is a single tier system as compared to the two-tier system used in other countries. It means that the company will be taxed only once at the corporate level and there is no taxation applied to the company after that taxation.
It is Credible
A private limited company will stand a better chance of credibility as compared to a partnership or a sole proprietorship business.
More investors will be attracted to the private limited company and they will be willing to invest in the business. Investors will play a great role in growing your business since most of them will provide the required resources for your business. The resources can be used to brand your business and make it stand out from the competitors.
Easy to Transfer Ownership
Transfer of the ownership can be carried out fully or partially in a convenient manner since there are no complex formalities involved. You do not need to close down the company in the case of death. You can easily transfer the ownership by selling the shares of the company. Laws in Singapore make the process easier.
If you are thinking of investing in Singapore, the time is now or never. The above information acts as a guide for the business environment in Singapore. The company incorporation services have been made easier and by following the right procedure, you will get your business ambitions to the next level.