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Why Singapore Limited Liability Company Is Much Preferred?
It's a great choice that you have selected Singapore to setting up your business venture. It is truly a safe, easy going and least complicated place to work in. There are different categories in which,[link widoczny dla zalogowanych], you can set up your company and Government of Singapore extends full support in their favor. And if you are into forming a Singapore Limited Liability Company, it is most welcome. And also, you must be wondering about all those rules, policies and needs for setting it up. Take a look of some of it and you would have a clear understanding.
Singapore Limited Liability Company can be of two types namely the Private Limited Company or a Public Limited Company. While the former has quite lenient rules, when the company develops and converts into a Public Limited Company, the rules become more stringent as it involves the public at large. Hence,[link widoczny dla zalogowanych], it becomes the government's responsibility to safeguard their rights.
If the business is new and upcoming it is always better to go for a Private Limited Liability Company.
To form a Singapore Limited Liability Company first you need to select a name for it and get it approved. Once that is completed, you can go for registration of the company with the necessary documents. Even if you were abroad, hiring an external agent would suffice, as they can do the filing on your behalf. Registering, provided all the documents are complete, takes only a few hours.
For this, the documents required are: a brief detail about the company's proposed activities, details of the Directors and Shareholders,[link widoczny dla zalogowanych], the supposed Registered Address of the company and the details of the Company Secretary (which is mandatory). Along with this, to fulfill the KYC norms, Residential Address proof and the passport copies of the Directors and shareholders are to be submitted. In case one shareholder is a company, its registration details also need to be attached.
All, except one director can be foreign nationals and it also doesn't matter if they are staying abroad. But, at least one of them needs to be a Singapore citizen or a permanent resident of Singapore or having a Singapore Work Pass.
The company doesn't require any prior approval or licenses to start a business in Singapore, except for certain areas like Finance, Travel etc.
There is single taxation only and all the profits and loss of the company are taken into account, as those of the Directors. But there is no Income Tax levied on this, for the Directors.
But at the same time, the debts of a Singapore Limited Liability Company are limited to the company and the Directors investments only and they are not personally held responsible for it.
Apart from this,[link widoczny dla zalogowanych], it is exempted from GST. The IT rate is also kept at the minimum of 9% and the maximum ceiling is fixed at 18%. And also there is no Capital Gain Tax levied.
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