Asiabizservices Explains What PTE LTD Company Is In Singapore
A company that helps foreign individual, entrepreneur or a business professional who wants to setup a Singapore company as an individual.
by Mark Dave Sunday, December 26, 2010
Because of its legal personality, a private limited company is afforded all the rights a legal and natural person enjoys. Thus, using its name, the company can possess assets and properties, incur profits and liabilities, sue companies and individuals and be sued against another.
A business consultant and market analyst in Singapore has more to say of a private limited company.
“The structure is designed to protect shareholders from each other and from themselves,” Han begins, referring to liability and losses.
“Shareholders are protected from liability of the company and from other shareholders due to negligence or unwise decisions,” continues Chi Han, “they are only accountable for their unpaid shares in the company.” Should their company shares be fully paid, then, they have nothing more to be liable for.
To protect shareholders from themselves, a private company is “restricted from selling shares to the public,” adds the business consutant. Hence, regardless of the reasons, a shareholder must seek approval from the rest of the board for selling his or her shares. Under rare circumstances allowing the sale of shares, the shareholder must first offer the sale to his or her fellow members.
“In the event of death or sale of shares, the transfer of ownership proceeds without many complications and the company continues to exist.” Unless initiated voluntarily despite solvency or necessarily due to inability to fulfill financial obligations, a company is inevitably perpetual in existence.
Singapore is the easiest place to do business among 183 economies canvassed by World Bank’s financial arm, the International Finance Corporation, in its Ease of Doing Business survey. The city-state garnered high scores in indicators such as trading across borders, obtaining business permits and licenses, employing employees, and registering a company.
Forming a private limited company in Singapore entails a simple and easy process. Among the first to prepare are the individuals involved in the corporation. Han named them as the resident director, shareholder, and a company secretary.
“The directors can be unlimited in number. However, all must be natural living persons and may not themselves be necessarily a shareholder.” A resident director, whose residence must be ordinary, is appointed as the head among directors.
Han continues further saying, “shareholders may number from one to fifty and may be a natural person or another corporate entity.”
Singapore offers attractive business policy including tax exemptions and incentives especially for newly registered companies. Foreign investors are allowed 100% acquisition of company shares, importation of capital, and repatriation of their revenues, for example.
Nonetheless, they are restrained from carrying out the registration procedure unless they are eligible to conduct legal and business transactions in Singapore.
Han reasons out, “Foreigners earn their eligibility when they obtain a labor pass or blue card in Singapore. Until then, they must hire a legitimate company to do things for themselves.”
About the Publisher:
Asiabizservices offers one-stop business solutions to companies, particularly, those that are managed and owned by foreign investors. Since its inception, Asiabizservices has successfully helped foreign entrepreneurs form a Singapore company. Among its specializations are Singapore company setup, corporate services, accounting services, nominee services, 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, accounting services including payroll preparation and more.
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. It also provides chartered secretarial services.
For more information visit:
AsiaBizServices PTE LTD
address: 120 Telok Ayer Street Singapore 068589
Singapore Company Formation Service, We provide company registration,incorporation, immigration, accounting and taxation services to entrepreneurs and businesses worldwide.
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