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Singapore Company Incorporation: What You Need to Know
Singapore Company Incorporation: What You Need to Know
In an effort to attract foreign companies and businessmen to invest and setup a Singapore company, the government has lowered the corporate tax rate from 18 to 17 percent in 2007.
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(pr4links.com)
22/09/2010
"“When it comes to tax benefits, Singapore corporation is very attractive that the country attracts thousands of foreign companies and investors every year,” business registration specialist AsiaBiz Services said."
September 21, 2010 - In an effort to attract foreign companies and businessmen to invest and setup a Singapore company, the government has lowered the corporate tax rate from 18 to 17 percent in 2007. And if this is not enough, the country follows a single tier tax system which means that tax are deducted from the corporate level while the shareholder’s dividends are excluded.
“When it comes to tax benefits, Singapore corporation is very attractive that the country attracts thousands of foreign companies and investors every year,” business registration specialist AsiaBiz Services said.
Aside from the tax advantages, this business entity also provides limited liability protection which means that shareholders will not lose their personal assets such as their cars and houses in case of bankruptcy.
“The limited liability arrangement is the main feature of corporation. And with this, local and foreign businessmen and investors will have a security that their personal assets cannot be liquidated to pay off their business’ debts and losses,” the professional firm added.
Another advantage of a corporation is that the business can enjoy “perpetual operation” unless the shareholders have decided to dissolve the company or merge with another business organization.
“Being a separate legal entity from the people who run and own the business, a corporation can exist regardless of the change in management or shareholders,” AsiaBiz said.
Meanwhile, a corporation comes in two categories: a private limited company which has less than 50 shareholders who are responsible for raising funds, and a public limited company which may have more than 50 shareholders who can invite the public to deposit money in order to raise capital.
“When it comes to tax benefits and exemptions, a private limited company provides more advantages. For example, a newly incorporated private limited company can enjoy 100 percent tax exemption on its first S$100,000 chargeable income within three years of being incorporated,” the registration firm said.
However, AsiaBiz said that a public company is sometimes better especially when shareholders need to raise funds for their business expansion without the need to get bank loans which are always associated with high interest rates.
But to turn into a public company, a corporation should be registered to the Singapore Exchange and the Monetary Authority of Singapore.
It is important to note that a public company may delist itself from the stocks exchange if the shareholders have decided to return to a private limited company.
AsiaBiz is a company that provides Singapore branch office services to local and foreign entrepreneurs and investors and offer consultation regarding the immigration and taxation law, accounting and book keeping requirements, and other compliance matters stated under the Singapore law.
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