For investors who are looking to earn profits by starting a company and getting all the benefits offered by the government, the best company model is the private limited company. The opportunities this type of company offers are a lot. The main advantage is that it is a separate legal entity and a change in the shareholders doesn’t affect the running of the business. This opens up a huge opportunity to collect funds whenever there is a need for expansion of the business. For those wondering how to set up a business in Singapore the agencies here are the best solution.
One of the major advantages of the private limited company is that the shares can change hands for increasing the company’s financial capabilities. Though the upper limit of shareholders for a private limited company is fifty there are no restrictions for a shareholder selling his or her shares to another person. This doesn't affect the normal business of the company. This means that the expansion of the scope of the company is virtually unlimited.
A private limited company can get the available tax benefits offered by the government. There are tax exemptions for new companies for the first three years and this type of company can avail of the benefits. Being an entity that is separate from the shareholders, there is no fear for the shareholders about losing their assets to make up for any liabilities of the company. Their liability is limited to the shares they have in the company.
The first step in starting a private limited company is to get the company name registered. You must have a name for the company and register it with the ACRA. Though the agents can get the name registered you must take care of the name you select. It must represent your business and must be easy for people to remember. This is the name by which your brand will be known by.
It is better to select two or three preferred names as there is a chance that the name you suggest may be rejected. If the name is in use already or is objectionable to the ACRA then it can be rejected. The ACRA can object to names that are vulgar or offensive. Names that suggest any connection with the government will also be rejected. The service providers can do a name search for you on the official website.
Once the name is approved you can keep it reserved for 120 days within which you must register your company. For registering your company, you must submit the name registration documents from the ACRA. You must also submit a brief description of the company and its activities. All the names and addresses of the shareholders should be given along with the registered address of the company in Singapore.
You must appoint at least one resident director and share the details with the ACRA. The company must also provide the details of the company secretary. If there are foreign shareholders, they must submit their passport copy and proof of address in their country. Foreign companies must submit the memorandum and articles of association. Residents of Singapore must submit a copy of their Singapore identity cards.
For setting up a business in Singapore the company must have a minimum of one shareholder, one resident director, one company secretary, and the registered office address.