The First Thing To Start A Company

You may know that you have to register for company first, but why do you need to register?

Your first question is: why should I register for business?

According to the business registration law, the definition of business

One is a wholly foreign-owned enterprise, that is, a company can only have one owner.

Of course, the sole proprietorship also has advantages, including cheaper establishment costs and simpler administrative procedures.

You don't need to appoint a secretary or auditor for the company.

However, you must renew your license every year and ensure that there is enough amount of health care savings.

Many small businesses such as trade promotion and family handicraft use this business situation.

The second form of enterprise is joint venture.

Basically, the advantages and disadvantages of joint ventures and proprietorships are much the same, but joint ventures must have at least two owners, up to 20.

The owner may be an individual or an enterprise, and at least one of the owners must be a Singapore resident.

Most of the legal institutions or accounting firms are registered in the form of joint stock companies.

The third form is private limited company.

Private limited companies receive legal recognition in the fiftieth chapter of the company law.

Such companies have their legal norms and possess industrial and legal rights.

It must have at least one director and participate in as many as 50 individual shareholders or joint ventures.

The advantage of registering a company as a private limited company is that the legal liability of the owner is limited.

The responsibility of a company is limited to the number of paid capital.

The disadvantages of private limited companies are higher establishment fees and administrative fees.

More cumbersome administrative procedures will enhance the company's operating costs.

In addition, a private limited company must appoint a company secretary within 6 months after its establishment and report its performance annually.

The business form of a private limited company is suitable for any type of business activity.

In general, as companies expand their businesses, many sole proprietorships will choose to pform into private limited companies.

The fourth option is limited Exempt Company.

This is much the same as that of a private limited company.

The only difference is that such companies can only have 20 individual shareholders, less than 50 of the private limited companies.

In addition, if the company's shareholders include institutions, the company will not be registered as a limited Exempt Company.

If there are only 20 or fewer shareholders, the company will automatically turn into a limited tax exemption form.

The last form of enterprise registration is foreign-funded enterprise.

The parent company or head office of a foreign capital enterprise is located abroad.

Its performance in Singapore will directly affect the parent companies abroad.

Therefore, the parent company will have to bear the legal liability of the foreign-funded enterprise.

A foreign-funded enterprise must appoint at least two agents to handle the registration, and the number of owners or directors must be the same as that of the parent company.

The cost of establishing a foreign-funded enterprise is quite high, and we should pay attention to many tedious administrative procedures.

In addition, foreign-funded enterprises must report their performance annually.

What is the most suitable form of business?

It will depend on your business and plan.

If you want to have autonomy and at the same time prefer small business, the sole proprietorship will suit you.

If you intend to share responsibilities with a number of partners, you may choose to register as a joint stock company.

If you plan to expand your business and hope that the company can own your own industry and assets and let the company bear the debt, then registration as a private limited company will be your right choice.