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All About Company Incorporation in Singapore

17th November 2010
By asiabiz in Business Law
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Talking about business incorporation is about the process of making the business as legal entity free from its creator.In the perception of the law, the business organization leader such as the chief executive officer or chairman comprised the specific legal entity. Thus, the corporation alters the way the business is regarded from the law's perspective and the way it should be run.

Just how differently an incorporation of business is run depends on its features and characteristics emerging from its legal status. Among them are taxation, liability, stock offerings, transferability, and uniqueness of a business name.

The creator of the incorporation is not viewed as the one managing the business, generating income or creating tax liabilities after incorporation is created. Rather, it is the corporation that does all these operations. Corporations have lower tax rates than personal tax rates.

The founder is being free from any liabilities and accountability incurred during business operations since it is the corporation who is directly involved in the operation. In this set up, the businessmen and the corporation have legal limits in all manners regarding liability.

Having possessed a legal status, the corporation is allowed to acquire and dispose properties using its name. The same thing can be said of its shares, which can be issued to another individual or corporation, or be bought or sold.

In instances such as death or sale of a corporation, the ownership as well as all the assets and liabilities of the corporation is directly handed over to the entrepreneur who purchased or acquired the corporation in whatever legal means.

One way of knowing that a business organization has been successfully incorporated is the way the business is named-it ends with incorporated or Inc.

Thus, all legal documents including business contracts, bank accounts and checks, invoice and bills bear the name of the business and their registration number.

It is satisfactory for an entrepreneur to see their business develop and grow aside from looking at the present profit. Expansion of the investor's organization may prove lucrative both on his part and the country's economy. No wonder, choosing business locations for investments are carefully done by entrepreneurs.

Presently, Singapore's population is 4.99 million people from diverse ethnical and racial background since 2009 and according to reports it has been considered as the easiest place to do business by World Bank's Ease of Doing Business 2010.Also from that report, Singapore continues to have the environment conducive to doing successful business.

Composition of its population as provided by the city-state's government affirms the validity of the statement. Apparently, various nationalities comprise the population as follows--74.2% came from many Chinese linguistic groups, 13.4% came from the Malays, 9.2% were Indians, and the residual 3.2% were a mixture of Euroasians, Arabs, and other nationalities.

The procedure involved in incorporating a company in Singapore is designed for the investor's convenience. However, there are guidelines that must be followed strictly for they are a component of Singapore's protection for its investors.

The following conditions are needed in order to incorporate a company in Singapore:

* Anybody whether a Singaporean or a foreigner can register or incorporate a company in Singapore.

* The minimum paid up capital amounts to S$1.

* At least 1 director and 1 shareholder should comprise the incorporation.Among the shareholders and directors, a local resident director must be appointed and who must be a natural citizen of Singapore or a Permanent Resident. If such is not the case and a foreigner wishes to be appointed as the local resident director, an Entrepass, Employment Pass or Dependent Pass would be a satisfactory requirement.

* Obtaining a local business address is also required.

Authorities allow independent companies to facilitate the incorporation of a business organization in Singapore.

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