Formation of company is a huge decision that one gets to make especially when just getting started. The majority of small business owners have this common belief that incorporation of a company in Singapore is a reserve for companies that are well established. There are multiple reasons for incorporation and such should be considered before getting started with formation of a company.
Here are some of the reasons for considering formation of company in Singapore;
Singapore is preferred by both local and foreign investors for the formation of company due to its favorable tax regime. Once you get to incorporate your company in Singapore, there are a number of tax benefits that a company gets to enjoy. Singapore charges corporate tax on the income generated in Singapore at the rate of 17 % regardless of whether it’s a local or foreign company. There are zero tax charges on capital gains by the company, there are zero charges on dividends that are distributed to the shareholders and the tax rate on foreign-sourced income that’s not repatriated to Singapore is also zero percent.
Enhances Brand Reputation
There is more to a business reputation than the Google or Yelp reviews that you can get online. As much as they equally count, when you get your company incorporated in Singapore your company tends to gain a sense of higher worth in the eyes of potential suppliers, customers, and other relevant groups that prefer working with a professional organization. Incorporation of company in Singapore, therefore, validates your company’s brand image.
Ease of Business Transfer
Incorporation of company makes the transfer of the business process to be much easier than when it’s a partnership or a sole proprietorship since the business has its own identity. A corporation can be easily valued for sale or transfer to other owners unlike other forms of businesses.
Continuity of Business
The desire of every business owner is for their businesses to have continuity even after they are gone. Incorporation of the company ensures continuity of the company so whether the owner becomes sick or meets any challenge, the company will still operate. The business gets protected forever, however, it’s also important to note that the business can still be sold or you may end up closing it and that depends on how it’s managed.
Because the company is registered in Singapore, the business owner can choose to have a plan for long-term business growth. Investors may also want to know whether your business can continue to exist legally without much influence of the owner.
Ease of Raise of Capital
When you opt for the incorporation of company, it becomes easy for your company to raise capital. Whether you plan on applying for a loan from a bank or selling stock the process is quite possible and that to a great extent adds credibility to your company. Another key reason for the formation of the company is that it helps with the protection of business assets. Without the incorporation of the company, your personal assets remain at risk to anyone who opts to file a lawsuit against your company.
Originally published by onestop-audit.com