5 things you need to know before incorporating a company
Introduction: – The first question one might encounter while setting up a business is whether to incorporate it or not. The business could start with incorporation of Company in Singapore. In both cases, the process may be up or a new for-profit incredibly complex. No matter where you are in the world, there are so many legal, practical, and financial problems one may face while setting up a business. So here are some points that one should keep in mind in the process including the incorporation of a company.
Types of privately owned businesses:-
Sole Proprietorship: – When a single person is starting up any business completely on his own then it is called a sole proprietorship. In this way, it is a lot easier to get your business registered. It is cost-effective; the decision-making is easy and convenient. But the downside is that the proprietor must bear all the responsibility for liabilities.
Partnership: – In this case, two or more persons unite to form a single entity. All the partners must bear the liabilities equally. The partnership-owned business comes in handy while raising a fund as it is considered safer than the sole proprietorship.
Limited Liability Partnership: – Unlike a partnership, this provides you the benefit of a lot less liability. Also, one individual partner is not responsible for another individual partner’s act.
Private Limited Companies: – Startups and businesses with higher ambitions generally opt for private limited companies. Such companies have shareholders and generally have less liability.
Public Limited Companies: – Public companies consist of a minimum of 7 or more members with a minimum paid-up capital. The legal restrictions are more in this type of establishment.
One-Person Companies: – This type of company allows a single person to hold all the shares. There are lots of benefits in setting up such a business as it allows one to be the sole entrepreneur and decision-maker.
For further assistance in this regard, one might seek the help of a Company Secretary Services Singapore.
Importance of incorporating a company:-
Incorporating your company will be beneficial for you in so many ways. This is the best way to avoid any legal liabilities. Your company can hold shares, transfer shares, and can sue. So, if you have bigger plans and larger dreams you must consider incorporating a company.
Rules for incorporating your business:-
- Business Name: – First thing first, one must have a properly registered name for their business. It must be unique and different from any other name.
- Business address: – Your business should have a proper physical as well as mail and email address.
- Names of company owners: – The shareholders of the company are known as the owners. Therefore, your company must declare the names of the shareholders.
- Names of decision-makers: – All the shareholders cannot be the decision-makers. There are mainly two types of decision-makers- incorporators, and directors. They are the ultimate decision-makers.
Conclusion: – No matter what type of business you choose to go for there will always be some risk factors related to it. In that case, one must seek expert assistance such as corporate secretary services in Singapore. We hope that with this article we can give some insights into this complex process of incorporation of a Company in Singapore.
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