Singapore is the land of opportunities. It is a goldmine for investors who want to set up new business ventures abroad. It is a great place to settle down as it as one of the cities with the highest standards of living. However, there are certain procedures that are to be followed before starting a business in Singapore. Here is all you need to know.
Types of Corporate Entities in Singapore
Singapore offers a diverse business scenario where entrepreneurs can start up companies of different types and sizes.
Sole Proprietorship: This type of business has a single proprietor who runs the small business without outside help. Such a business is easy to set up. The tax affairs of the proprietor and the business are regarded as one.
Foreigners who wish to apply for sole-proprietorship business in Singapore need to appoint an ordinary resident in the country as an authorized representative. This is to be done if they reside outside of Singapore. Those wishing to migrate need to apply for an EntrePass. Furthermore, they need to choose a name and address for the business and then complete the registration formalities.
Partnership: A partnership business involves at least two people as partners (though the number can go up to 20). The liability for business expenses falls on the partners. In such a case, there are two different scenarios. Firstly, the partnership can be a limited partnership with one of the partners is responsible for the company’s liability. There are other partners too but the extent of their liability is limited to the agreed contribution they make to the business. Secondly, a limited liability partnership represents a business which is a separate entity from the individual. It is taxed separately.
The procedure for registering a partnership business in Singapore is quite similar to that for the sole-proprietorship. In this case, at least one of the partners should be a Singapore resident. If not, the business has to appoint an authorized representative in the country.
Company: A company is a business that has numerous stakeholders but their liabilities are limited to their holding in the company. Their personal assets are protected from the liabilities of the business. Starting a company is beneficial as it is easy for such a business to raise capital. Additionally, there are several legal and tax benefits that a company gets.
People wishing to register a company in Singapore must appoint a locally resident director. The registration process for such entities is similar to that followed for local companies. The other way is to apply for an EntrePass to start the company as a local resident of Singapore. Once these formalities are completed, the legal process of company registration is taken up. The entire process, including form submission and payment, is done online.
Considering the complexities of the process, businesses should avail professional help to complete the legal formalities. There are a number of service providers such as http://www.e-sandhurst.com that extend reliable guidance for entrepreneurs looking to explore business opportunities in Singapore.