No wonder Singapore is a highly developed country as its Laws are so structured that they attract businessmen from around the world. Forming of Singapore Private Limited Company is not as tough a job. Rather it is flexible and is quite beneficial for any upcoming or already functional business. Some of its advantages are:
1. One can form a company with even only one person as the Shareholder and one as a Director. Same person can be the shareholder as well as the Director too. The best part of the law is its facility for forming a company with cent percent foreign ownership or shareholding, as it is normally called.
2. Yet another unique law is that the said Singapore Private Limited Company is considered as an independent legal entity, which comes in handy especially when there is a loss of the company. In such a situation, the shareholders and directors personal assets would not be attached to the company for clearing its debts. Only they would be at loss in their shares and more. Hence it is also termed as a Limited Liability Company. This is a super advantageous law as the shareholders are quite secured when it comes to their personal assets and identity.
3. Apart from this, such a law enables the company to be in a consistent state with the minimal hampering of its operations due to a change in directorship or shareholders.
4. To woo more businessman to establish their operations in Singapore and to boost the business and economy of the country, Government of Singapore gives the benefit of Tax Exemption to newly formed companies, irrespective of the fact that they are local or foreign companies.
5. To balance the act and be on the safe side they have a law, which states that, the foreign entities and individuals cannot register their company on their own. But at the same time, not to restrict the foreign shareholders from doing business in the country, they have provided with an option. Registration can be done through a Professional Registration Firm that is accredited by ACRA (Accounting and Corporate Regulatory Authority).
But setting up of a Singapore Private Limited Company has some read this artile on limited company startups disadvantages too like high cost of setting up and winding up process, stringent rules and policies etc. But surely they will not weigh down the huge advantages.
The basic requirements for setting up of a Private Limited Company are that
1. At least 1 Director needs to be a Singapore citizen / Singapore Permanent Resident / or a person with a Singapore work pass holder). He should be above the age of 18 years.
2. A Business name that needs to be unique and have no similarity with any of the company registered under ACRA, Singapore. The approved document is to be attached.
3. Interestingly, the minimum paid up capital is as low as $1.
4. A local complete registered address for communication and where the daily business operation is to be done.
5. And once the company is registered, a qualified Company Secretary needs to be appointed within 6 months.
With all these facilities and flexibilities, no doubt there would be ushering in of more business entities registering as Singapore Private Limited Company in Singapore.