Pros and Cons of Singapore Private Limited Company

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Pros and Cons of Singapore Private Limited Company
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In Singapore, all companies are incorporated
according to the procedures under the Singapore
Companies Act. Among various types of company
incorporation such as sole-proprietorship,
partnership, public limited and private limited
companies, Singapore private limited company is
one of the most preferred type of company
incorporation in Singapore.
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• Singapore private limited company is a
  business entity registered under the Companies
  Act, Chapter 50. It usually has the words 'Pte
  Ltd' as part of its name. Singapore private
  limited company has limited liability and the
  shareholders may not be held responsible for the
  debts and liabilities incurred by the respective
  private limited company in Singapore.

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• While it is indeed one of the most preferred
  company incorporation options in Singapore,
  finding out whether it is appropriate for nature,
  kind and goals of your business is necessary in
  order to choose the best Singapore company
  incorporation option as well as avoid any
  unanticipated situation.
• To help you to make an informed decision,
  lets discuss the pros and cons of Singapore
  private limited company so that you can make a
  choice about whether or not it is appropriate for
  you and your business in Singapore.

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ProsEasy incorporation procedure

• Incorporating Singapore private limited
  company is easy and can be done with a few simple
  steps within a matter of hours. Those steps to
  register a private limited company in Singapore
  includes the placement of enquiry, reservation of
  name, followed by the filing and submission of
  the required forms with supporting documents.

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Independent legal identity

• Singapore private limited company is an
  organization that has a separate  legal entity
  separate and distinct from its shareholders and
  directors. This means that a Singapore private
  limited company can own property, sue or be sued,
  and take on debts in its own name rather directly
  suing individuals.

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• In fact, the nature of Singapore private
  limited company is limited liability. This means
  that if by any chance a company fails, the
  shareholders are only liable to pay until the
  extent of investment done by each one of them
  individually thereby the personal assets that
  they possess remain safeguarded from being
  liquidated. That is why most entrepreneurs choose
  private limited company over sole proprietorship
  company because they know full well the volatile
  nature of businesses. 

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Singapore Branding and the companys
propositions

• While being registered as a Singapore private
  limited company can be global in nature and the
  brand proposition of a private limited company in
  Singapore provides greater credibility and
  reliability to trade not only locally but also
  internationally. This is because many foreign
  companies set up subsidiaries in Singapore and
  many local companies had become well-known
  globally. Singapore is thus being perceived as a
  global hub for international trade. Such
  perception opens up the horizon for start-up
  entrepreneurs to explore and expand the business
  as much as they can.

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Perpetual succession

• A private limited company in Singapore can
  last in perpetuity. Any changes in the membership
  of shareholders will not affect the continued
  existence of the company. The company can
  continue despite the death, resignation, or
  insolvency of shareholders. Other types of
  business entities in Singapore have no perpetual
  succession. This means that if the sole owner or
  partner is not alive or has no more desire to
  continue the business, the company will cease to
  exist by legal requirement under Singapores
  Company Act.

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Tax advantages

• Being a business hub, the corporate tax rates
  in Singapore are lower than individual tax rates.
  As Singapore private limited has its own legal
  identity that is distinct from individuals, such
  companies enjoy corporate tax rates and thereby
  saving money on tax that they would have required
  to pay in case of a sole proprietorship. A
  private limited company in Singapore is a tax
  efficient entity. It enjoys many benefits in
  terms of tax rebates, schemes, and policies. The
  corporate tax rate for companies is capped at 17
  for profits exceeding SGD 300,000.

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Transfer of ownership is easy

• Transferring ownership is an easy for a
  private limited company, because all that is
  required to be done is just transferring the
  shares to the new owners name. This makes it
  possible for entrepreneurs to not only take an
  easy exit whenever required, but more
  importantly, the ability to offer certain
  percentage of ownership equity to investors in
  the appropriate projects.

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Con

• Along with so many pros as listed above, there
  are several cons of Singapore private limited
  that must be kept in mind when choosing this as
  an option of company incorporation in Singapore.

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Tighter rules, regulations and administrative
requirements

• Incorporating and running private limited
  company in Singapore means abiding by stringent
  rules and regulations as laid down in Singapore
  Companies Act which are stricter as compared to
  that of the sole proprietorship and partnerships.
  Even the accounts for a private limited company
  must have more information than that of others.
• Also, running a private limited company
  requires directors to fulfill many statutory
  requirements such as filing and preparations
  of annual reports, returns, accounting and so on.
  This is both difficult and costly to manage.

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• As you now know all the vital pros and cons
  of Singapore private limited company, we hope
  that you are able to make an informed choice on
  your incorporation decision. Whether you want to
  register a private limited company in Singapore
  or you would like to go with a different
  incorporation option, Precursor has an expertise,
  experience, and track record to help you in every
  step of your business. With an award winning team
  of local expert and global experience of working
  with various multinational businesses, we are
  proud to work with you as your local partner.

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• For More information visit this link
• http//precursor.com.sg/pros-cons-singapore-privat
  e-limited-company/

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Contact us

• Precursor Group Pte ltd.
• Address 60 Albert Street 14-04 OG
  
• Albert Complex Singapore
• (189969)
• Phone [phone]
• Email id clients_at_precursor.com.sg
• Website http//precursor.com.sg

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