There are several different ways in which companies could get registered in Singapore. They include:
- Individual entrepreneurship.
- Copartnership.
- Company.
- LPs.
- LLPs.
- Trusts.
Pros & Cons of Registering Sole Proprietorships in Singapore
The pros include:
- Very few formal & legal requirements
- Very few regulations governing management
- Simple liquidation
The cons include:
- Owners bear personal liability for their business’ debts
- Companies stop operating if their owners pass away or go bankrupt
Registering Partnerships in Singapore
The pros include:
- Very few formal & legal requirements
- Very few regulations governing management
- Transparency of taxation
- Simple liquidation
The cons include:
- Partners are deemed agents
- Partners bear no personal liability for their business’ debts
- The number of partners may not exceed twenty
- Passing away or bankruptcy of any of partners leads to the dissolution of partnership
Registering Companies in Singapore
The pros include:
- Companies’ members bear no personal liability for their businesses’ debts
- Companies do not depend on their participants’ going bankrupt or passing away
- Companies can have any number of owners
The cons of registering companies in the state of Singapore include:
- The necessity to comply with some regulations & requirements.
- Companies’ management is administratively regulated
- For companies to be liquidated their owners must comply with numerous requirements
Registering LPs in the State of Singapore
The pros of registering LPs in the state of Singapore include:
- Very few formal & legal requirements
- Very few regulations governing management
- Transparency of taxation
- Partners do not bear personal liability for their business’ debts
- Passing away or bankruptcy of partners does not lead to the dissolution of partnership
- Streamlined procedure for liquidation
The cons include:
- Partners with the ‘general’ status do not bear personal liability for their business’ debts
- Partners with the ‘limited’ status are not allowed to manage partnerships if they wish to keep using their status
- Limited number of partners - only 20
Registering LLPs in Singapore
The pros include:
- Very few formal & legal requirements.
- Very few regulations governing management
- Transparency of taxation
- Partners do not bear personal liability for their business’ debts
- Passing away or bankruptcy of partners does not lead to dissolution of partnership
- Number of partners is unlimited
- Streamlined procedure for liquidation
The cons include:
- Partners are deemed LLP agents
- Requirement to submit a solvency declaration on an annual basis
- Multiple requirements must be met for having LLPs liquidated
Registering Trusts in the State of Singapore
The pros of registering trusts in the state of Singapore include:
- Trusts’ owners bear no personal liability for their business’ debts plus their liability is proportionate to their monetary contribution to the entity.
- Passing away or bankruptcy of a trust’s managers does not lead to the dissolution of a trust
- Number of partners is unlimited
The cons include:
- Compliance with some regulations & requirements
- Management of trusts gets tightly regulated
- Multiple requirements must be met for having trusts liquidated.
Having Foreign Companies Registered in Singapore
Registering a foreign company in Singapore requires their owners to abide by the following requirements:
- Registering a representative office in Singapore with IESCl
- Registering a subsidiary in Singapore as per the CA
- Acquiring/registration of an LLC based in Singapore
- Submitting financial reports to ACRA
Appointing independent contractors, such as marketing agents & distributors, does not qualify as conducting business in the state of Singapore.
If a foreign company intends to engage in business activities in the state of Singapore, it must register a subsidiary in Singapore & obtain a license in the state of Singapore.
Taxation in Singapore
The below list consists of the major taxes entrepreneurs in the state of Singapore have to pay:
- Pay-as-you-earn tax. This kind of tax is levied territorially (i.e. on proceeds gained inside & outside of Singapore).
- GST. This kind of tax is imposed on imported goods, including all goods & services delivered in the state of Singapore
- Real estate tax. This kind of tax is levied on the owners of land & real estate.
- Stamp duty. This kind of tax is levied on documentation related to the leasing, transfering or mortgaging of real estate
- Customs duties and excise taxes. This kind of tax is levied on producers of oil, tobacco & alcohol products
- Tax on non-domestic workers. This kind of tax is imposed on non-domestic workforce in the state of Singapore.
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