Asiabizservices Highlights Singapore Private Limited Company Setup Advantages 

Private limited companies are deemed more stable than other business structures. Therefore, during the incidences in which the company applies for a loan, banks favor private limited companies more than they do partnerships or sole proprietorships.

by Ashley Varghese Friday, December 10, 2010
Singapore is located in Southeast Asia and is among the leaders in recovering the economy from global recession. A private corporate body in Singapore takes the structure of a private limited company. Among others, it defines the limit of liability, provides lower taxes and perpetual existence.

Asiabizservices elaborates the characteristics of a private limited company.

“A private limited company is recognized with legal existence different from its shareholders and directors.”

It features protection on its shareholders and directors such as that the liability is limited to the shareholder’s unpaid shares. Because most private companies declare fully-paid shares upon their registration in Singapore, the only liability of shareholders is within the range of the value of shares and loans made to the company.

“Hence, personal assets are not at risk,” Asiabizservices adds.

Once the company is registered, its business name is protected. In Singapore, the first step involved in registration is approval of business name. “A business name must be exclusive bearing no resemblance to any existing companies.”

Lower taxation is another advantage. Singapore is among the few nations levying low corporate tax rates at 17% for revenues accrued more than S$300,000. For profits earned between S$10,000 and S$300,000, the tax rate is 8.5%.

“Newly incorporated private limited companies are eligible for tax exemptions on their first S$100,000 accumulated income for 3 years,” Asiabizservices continues its elaboration on the tax advantage of a private limited company in Singapore, “there is additional 50% off on corporate tax for the next S$200,000 earning.”

After deduction of corporate taxes, the dividends disseminated among shareholders and or directors are not taxed for withholding. Further, Singapore holds valid the avoidance of double taxation treaty it maintains with different countries in Asia Pacific.

Once registered, a private limited company has perpetual existence. The only time that it ceases to exist is when the shareholders declare it insolvent and or bankrupt. Thus, Asiabizservices says further that the company continues to exist even when shareholders sell their shares of the company to another individual or corporate body.

“Death or resignation of officers of the company does not affect the structure or operations of business. It shall continue as before and the shares they held shall be transferred to another individual or corporate body with ease.”

Private limited companies are deemed more stable than other business structures. Therefore, during the incidences in which the company applies for a loan, banks favor private limited companies more than they do partnerships or sole proprietorships.



About the publisher:

Since its inception, Asiabizservices assists foreign entrepreneurs establish a company in Singapore. Among its specializations are company registration Singapore, corporate services, accounting services and nominee services.

Asiabizservices does not waver in its goal to establish its reputation in the industry by helping investors register a company in Singapore. Such efforts pay off as the company is among the prestigious corporate solutions providers in Singapore.

Among its specializations are company registration, whether as a sole proprietorship, private limited, limited liability partnership; offshore company formation, incorporation of foreign companies either as a branch or subsidiary office, and accounting services including payroll preparation.

Asiabizservices is the leading provider of Singapore Company Incorporation services and has successfully helped thousands of both local and foreign entrepreneurs incorporate a Singapore Company.



For more information:

AsiaBizServices.com
Address: 120 Telok Ayer Street Singapore 068589
Phone: +6563034614
Email: sales@asiabizservices.com
Website: http://www.asiabizservices.com/

0    submitted by Ashley Varghese
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