5 Advantages of Incorporation of Company in Singapore
As much as operating a small business can be flexible and easy to manage, the model of operating a sole proprietorship can be such a risky venture. One way of limiting personal liability is by considering incorporation of company in Singapore. While the process of incorporation is involving and requires a lot of paperwork, it offers important tax and legal advantages especially when you engage a reputable corporate service provider in Singapore for the task.
Here are some of the advantages of incorporating a company in Singapore;
Protection of Personal Assets
One of the best ways you can use to protect your personal assets is through incorporation of company in Singapore. A corporation is legally capable of owning property, carrying on business; incurring liabilities, and can either sue or be sued. A registered company is considered as a separate legal entity and is responsible for its own debts. It, therefore, means that creditors of a registered company can seek payment only from the company’s assets and not from the personal assets of the directors, shareholders or officers.
It therefore means that the business owners can conduct the business without worrying about risking their homes, savings, or personal property. Owners of partnerships or sole proprietorship on the other hand tend to face unlimited liability for both their personal and business assets.
Easier Access to Capital
Raising capital is never easy especially for sole proprietorship or a partnership. However, the case is different with a registered company as it can issue shares of stock and that makes it easier for the business to grow and develop. Banks also prefer lending money to corporations than other types of business ventures. A registered company has several alternative ways of raising capital which they can use to offset debts and grow their businesses.
Enhances Business Credibility
Another key benefit of incorporation of company in Singapore is that it enhances credibility. Suppliers, business associates, and customers are more likely to perceive a registered company as being credible and more stable. Since the business name convey some element of permanence, stability, and credibility it’s likely to be viewed by many in a better light, unlike the sole proprietorship or partnership. Registering a company also communicates a level of commitment to the ongoing success of the business venture.
Incorporation of a company in Singapore provides anonymity to the owners. If in case one wants to operate a business and doesn’t want their involvement to be public knowledge, the best alternative is to incorporate the company.
Corporations are considered as the most enduring legal business structure as it’s designed to continue indefinitely regardless of what happens to the individual directors, managers, shareholders, or its officers. It, therefore, means that by opting for incorporation of a company in Singapore; you get to avoid legal entanglements that are likely to happen with other forms of business structures.
As much as considering the incorporation of a company in Singapore is beneficial, it’s advisable that your company’s engage a reputable corporate service provider in Singapore for the task as there are a number of factors to be considered during the registration process.
Originally published by onestop-audit.com