Importance of Company Incorporation: Everything you need to Know
The number of business owners that are opting for incorporation of company in Singapore is on the rise and this can be attributed to a number of factors. Incorporated companies tend to offer the shareholders personal asset protection since the companies exist as separate entities from their owners. Business owners who operate unincorporated businesses don’t benefit from personal liability protection which means that in case of any issue arising in their business, they are considered liable.
It therefore means that creditors can claim their assets and personal finances to clear pending debts. Owners of incorporated companies can however, conduct business without having to risk their personal property as us their savings, homes, vehicles and other personal assets. As much as the process of incorporation of company in Singapore can be involving due to the various statutory requirements that has to be met; there are a number of benefits that makes every process worth the effort.
Here are some of the reasons why incorporation of company is important;
The majority of business owners who opt to incorporate their company in Singapore are normally influenced by the conducive tax policies that are available in Singapore. Singapore income tax is normally levied on income that’s locally generated. The income that’s earned by foreign subsidies of such companies are exempted from tax. Singapore also charges no tax on capital gains and the dividends received by holding companies is also tax-free. In order to realize maximum tax benefits, it’s advisable that a company works with a reputable corporate service provider in Singapore such as Onestop CA Singapore.
Credibility and Ownership
Corporations tend to enjoy better credibility when compared to other types of businesses. From the suppliers, customers, landlords, financial institutions and statutory authorities they tend to view the choice for incorporation of company in Singapore as a serious and long-term commitment. Having corporate identifiers such as Corp, Inc. or Ltd tends to convey a sense of permanence, credibility and stability. Corporate business owners can easily transfer ownership to another person. They can also sell or even assign their shares to a partner or family member.
Ease of transfer is a key thing that contributes to the perpetual existence of corporations. The operation and life of a corporation is never affected by death or withdrawal of one of the directors. Such a status helps the owners to avoid legal entanglements that in most cases arise in other business structures.
Investment and Management
The setup of an incorporated company provides a well-structured management where decision making is centralized and the shareholders have a vested authority in the board of directors. It’s normally easier for incorporated companies to raise capital whenever needed. They can choose to issue shares of stock and that helps with making the growth and development of the business to be quicker.
Working with a reputable corporate service provider such as Onestop CA Singapore for incorporation of the company helps with ensuring that all the measures are taken to make the entire process seamless and fast.
Originally published by onestop-audit.com