Rikvin Speaks On Singapore Private Limited Company Formation Advantages 

A Company that have a complete benefits that help foreign and local entrepreneurs setting their own business in Singapore.

by Maria Wicher Monday, December 06, 2010
Under the Singapore Companies Act, a company is treated as a legal person. That is, it has a legal status separate from its owners called shareholders, and managing body known as directors. In its own business name, the company can acquire and lose ownership of assets and participate in a lawsuit or be sued against.

According to Rikvin, a Singapore private limited company offering one-stop solution provider for company formation, the advantages of a private limited company in Singapore are many.

“Because it is deemed as a separate legal entity, it assumes full responsibility to the outcome or consequences of the transactions it has entered into, rather than its owners or managing directors.”

Rikvin continues, “The exposure to loss of a shareholder is limited to the amount of investment or paid-up capital issued in the company.” This means, that in case of a lawsuit or unfavorable verdict against the company, the shareholders and directors are not personally liable.

“Hence, the personal assets such as home, other business firms, cars, and bank accounts are not seized,” Rikvin adds.

Another advantage of a private limited company is its perpetual succession. The company continues to exist despite changes in its owners and directors. Rikvin says that in the event of death or resignation, the shares of that person are allocated to remaining members or in any manner stipulated in its Articles of Association. The shares can also be transferred to another shareholder—whether a natural person or another corporate body—through sale or issuance of share.

“The only circumstance that would halt the existence of a private limited,” Rikvin continues further, “is when the company is liquidated or has declared bankruptcy or insolvent.”

Private limited companies incorporated in Singapore enjoy good international reputation because the city-state has stable economy and political system. Its international trading jurisdiction is backed by sophisticated infrastructure and technology.

Thus, companies in Singapore can open corporate bank accounts with much ease. Banks even provide Letters of Credit to support companies as they engage in international trading. And since Singapore is known as a major investment hub in Asia and beyond, companies are exposed to a region of opportunities, being able to promote their products and services to customers, suppliers and investors.

The huge advantage of a private limited company is taxation. For newly incorporated companies, tax exemptions are given for the first accumulated taxable revenue of S$100,000 for 3 consecutive years.

“Another 50% off is given to the next S$200,000 accumulated profits,” beams Rikvin, explaining in particular that in Singapore, the taxation follows a single tier system. Therefore, once the corporate taxes are levied, the dividends disseminated among its shareholders are free from withholding tax.
Singapore’s reputation being the easiest place to do business is evident in the Ease of Doing Business 2011 report, which after canvassing 183 economies, the International Finance Corporation has distinguished Singapore to be consistent in its benchmark scoring since 2005.

About the publisher:

Rikvin provides corporate solutions to investors and entrepreneurs in the local and abroad. Among its specializations are formation of a Singapore company and business firm and providing professional services relating to finances and administrative.

Since 1995, Rikvin serves hundreds of companies managing and rendering Singapore accounting service using sophisticated payroll software system to handle even the most complicated payroll account. In its payroll services, Rikvin assures its clients of confidence in dealing with every transaction. Its accountants maintain competence. Above all, Rikvin’s principles adhere to the laws and share the same vision such as the inevitability of innovation. Rikvin has successfully helped foreign and local entrepreneurs form a Singapore company.

For more information, visit:
20 Cecil Street, #14-01, Equity Plaza, Singapore 049705
Main Lines : (65) 6438 8887
Fax : (65) 6438 2436
Email : info@rikvin.com

Rikvin provides Singapore Company Registration service including securing your Singapore Employment Pass and Singapore EntrePass Visa for Singapore Business Migration.

General | Categories: financial, business
0    submitted by Maria Wicher
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