Different types of companies and which singapore company incorporation is best

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The different type of Singapore Company
incorporation and which suits you best?

• Once you are convinced that you want to register
  company in Singapore, it is important that you
  know the type of company or business entity that
  you want to incorporate, such as Sole
  Proprietorship, Partnership, Limited Liability
  Partnership, or Limited Partnership.
• As a home to so many international companies
  operating in a wide spectrum of industries, the
  legal framework of Singapore allows for a variety
  of business structures to get registered and do
  sustainable and profitable business while
  ensuring that their diverse needs and
  requirements are met.

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• The decision about the type of company you need
  to incorporate is critical as the type of entity
  you choose will ultimately determine the key
  issues such as the liability of owners, transfer
  ability of business, financing and expansion
  potential of the business and most importantly
  the tax and compliance cost of maintaining the
  entity.
• Here are all the important details about types of
  companies in Singapore so that you can choose the
  best option thats applicable in your specific
  situation.

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Company

• A Company is a company limited by shares i.e. its
  liabilities are limited to the amount of share
  capital. A company is incorporated by registering
  with Accounting and Corporate Regulatory
  Authority (ACRA) of Singapore under the Companies
  Act. It is a separate legal entity, meaning there
  is a legal veil that separates owners from the
  entity. A company can enter into contracts and
  own assets. It can sue and be sued in its own
  name.
• The liability of the company is limited to its
  share capital and each members liability is
  limited to the share capital subscribed by the
  member (shareholder).
• The liabilities of the owners are limited to the
  assets in the company and their personal assets
  are protected from business liabilities. 

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There are 3 types of Company in
SingaporePrivate Limited Company (Pte. Ltd.)

• Private limited company incorporation in
  Singapore is the choice of many small and medium
  size business entities due to several benefits
  that it offers.
• The shareholders are not held responsible for
  company debt that surpasses share capital
  contributed.
• The companys shares belong to limited people,
  usually, a few individuals or corporate entities
  and are not available to the public at large.
• Shares can easily be transferred
• it has easier means to  raise capital

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• In addition to above advantages, there are tax
  exemptions provided to small and medium size
  businesses, most of which choose private limited
  as their choice of company incorporation in
  Singapore.
• Under the Tax Exemption Scheme for New Start-Up
  Companies, qualified companies are given full
  exemption on the first  100,000 normal
  chargeable income and a further 50  exemption
  on the next 200,000 of normal chargeable income
  for the first three consecutive years. 

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Public Limited Company

• Different from a private limited company, the
  shares of a public limited company are often
  available to the general public. These companies
  will be found in the stock exchange.  The number
  of shareholders is at a minimum of least 50
  people. Given that these types of companies
  involve the public at large, there are more rules
  and regulations that avoid exploitation and the
  misuse of public funds. This option is best for
  large businesses.

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Public Company Limited by Guarantee

• Unlike private and public limited companies, this
  type of company is mainly setup for a
  non-profitable purpose.  It is conceptually a
  public company formed along the principle of
  limiting the liability to the amount that members
  contribute to the assets of the company.
• This set up is common with non-profit
  organisations.

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• Types of company structures available for
  business owners to register company in Singapore

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Sole Proprietorship

• This is the simplest type of company and its
  easiest to incorporate company in Singapore as
  Sole Proprietorship.
• It is however, the riskiest considering that
  likes of LLC, the owner of a Sole Proprietorship
  company is seen as part and parcel of the
  company. They are thus, more liable to suffer
  risks that arise from the business.
• Personal assets and those of the company are
  under the owners name, meaning they are not
  protected. If the company is in debt, then
  personal assets are legally not beyond the reach
  of creditors.
• This type of company is best suited for
  individual shop owners or solo entrepreneurs.
  Its important that the risks involved in
  operating such a company are clearly understood
  before going for registration.

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Partnership Company

• A partnership company does not exist legally on
  its own without its partners. Membership ends
  upon death, retirement or insolvency. There are
  three types of partnership structures in
  Singapore general partnership, limited
  partnership and limited liability partnership. 
• General Partnership
• This business structure is similar to a sole
  proprietor. The business partners are personally
  liable for the business liabilities and debts.
  The partners share responsibility as one is held
  accountable for the actions of a fellow partner.
  It is not the best business structure in
  Singapore as it contains a lot of risks.

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Limited Partnership

• In Singapore, this is the most common type of
  partnership structure in the company. This is
  because the liabilities are limited to the
  companys investments. The risks to all the
  partners personal assets are thus limited to how
  much they invest into the business. The partners
  cannot however, manage the business. 

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Limited Liability Partnership (LLP)

• This is basically a structure where a registered
  LLP gives the partners the freedom to run the
  business and contribute to its management. This
  company comes along with benefits similar to
  those found in a private limited company. This
  partnership is the best for business where
  professionals have a joint practice. It requires
  a great deal of organization and planning
  beforehand. With this in regard, it more often
  than not required a lawyer to draw up the
  agreement between partners involve.

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• Comparison between General Partnership, LP LLP
  company structures

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Conclusion

• All the business entities and structures are best
  suitable for different scenarios. A local in
  Singapore would for instance work best with a
  Sole Proprietorship if they are the only owner
  and if the products and services do not present
  risks and liabilities. If you are a professional
  who is looking for starting a business with
  several partners in your field, then you can
  consider a Limited Liability Partnership. The
  best choice for a lot of business people and
  Entrepreneurs is a private limited company
  set-up.
• Read here for complete details
• http//precursor.com.sg/different-types-companies-
  singapore-company-incorporation-best/

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