Singapore is a small country but over the last few decades it has made tremendous progress in technology. Businessmen from all over the world have invested in this country and running their business, efficiently. In this short article, let’s understand Singapore company formation.
In Singapore usually following types of company exist including –
Limited Liability Company
This type of Singapore company formation is based on limited share and also its liability is limited up to the amount of share capital. These types of companies come under Singapore Companies Act. Such type of company can be of following types:
- Private Limited Company
In this type of Singapore Company formation there shall be less than 50 share holders and not open to any general public. The company name will generally end with Pte Ltd. and they are registered as private limited companies. These companies are very flexible, most advanced and scalable kind of business entity. Most entrepreneurs prefer to do business in this form because –
- It has its own legal entity and can acquire assets, enter into contracts, go into debts, sue or gets sued.
- Liability of each member is limited up to the amount they contributed.
- Any member can exit from the company.
- Capital can be raised anytime by including new shareholders
- It has a credible image in the market.
- Ownership can be transferred.
- Public Limited Company
This type of Singapore company formation general public may also take the share and it must have minimum 50 shareholders. The rules and regulations are also very stringent in such type of companies. These companies are also listed in stock exchange.
- Public Company Limited by Guarantee
These types of company formation are not for earning profits but providing services to people.
Besides that there are companies are of following types –
- Sole proprietorship
- General partnership
- Limited partnership
- Limited Liability Partnership
Most of the local businessmen prefer to start as sole partnership. If the business is as a professional then Limited Liability partnership is preferable. For most of the cases private limited company is the option.