For entrepreneurs who have a long-term plan for their business and want to enjoy more stability, Singapore's leading business registration specialist Rikvin usually recommends the private limited company which is setup that provides countless.
(prHWY.com) October 7, 2010 - Singapore, Singapore -- For Immediate Release
October 7, 2010 - For entrepreneurs who have a long-term plan for their business and want to enjoy more stability, Singapore's leading business registration specialist Rikvin usually recommends the private limited company which is setup that provides countless of advantages especially in terms of taxation.
In Singapore, a private limited company is treated as a separate legal entity from its shareholders (correct term for company owners) and board of directors. With this arrangement, these people enjoy limited liability which protects their personal assets such as houses and cars from the lawsuits, claims, financial losses, and debts related to their business.
"A private limited company, which is also known in the US and other European countries as corporation, is very attractive to those who want to form a Singapore company minus the risk of having their personal assets liquefy to pay off the debts related to their business," Rikvin said.
In legal perspective, a private limited company is treated like a real person since it can be sued or file a lawsuit, acquire a property, and purchase supplies under its name.
Under the Singapore Companies Act, this business structure is allowed to have a minimum of one and a maximum of 50 shareholders.
It is important to note that ownership can be transferred from one shareholder to another individual without affecting a business' existence.
"A private limited company enjoys perpetual succession and will not be affected if one shareholder resigns or dies since its ownership is transferable. It literally enjoys perpetual existence unless the shareholders and directors decide among themselves to liquidate the company or merge with another business organization," Rikvin said.
Meanwhile, foreign companies and individuals can also adopt this structure by registering a subsidiary company which is essentially a private limited company which just happens to have a foreign entity or individual as its main shareholder.
To encourage foreign and local companies to form a Singapore company, the government is providing tax benefits and development incentives. One way to qualify for such corporate benefits is to register a private limited company.
Within three years of incorporation, a private limited company, or subsidiary for foreign businessmen, is eligible for "Zero Tax" and 50 percent tax exemption on its first S$100,000 and S$200,000 chargeable income, respectively.
But to qualify for these tax exemptions, a private limited company should have at least one individual shareholder who owns 10 percent shareholdings and should practice its management and control in the country.
Contact Rikvin
Rikvin is the leading Singapore Company Incorporation and work pass specialists. It has successfully assisted thousands of foreign entrepreneurs process their Singapore Employment Pass Application and their Singapore Subsidiary Registration.
Our office is located at Raffles Place, in the heart of the Singapore business district. ("CBD")
If you're in our neighborhood and want to discuss any aspect of our service then feel free to come in to our offices during business hours. Appointments are welcome but definitely not necessary.
20 Cecil Street, #14-01, Equity Plaza, Singapore 049705
Main Lines : (65) 6438 8887
Fax : (65) 6438 2436
http://www.rikvin.com/
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