Company! Benefits of Incorporating a Singapore Private Limited Company
Save on your Singapore Corporate Tax
Singapore Companies are taxed at a lower rate than personal income. To encourage local entrepreneurship, Singapore Government has declared a full tax exemption for newly incorporated companies.
“Full tax exemption is granted on the first $100,000 of Chargeable Income for qualifying new companies for the first three years of assessment consecutively.”
Protect your Personal Asset.
The main reason individuals choose to incorporate their business is to protect their personal assets, such as the home, car or family savings. In the event of a lawsuit or should the business fail, Director’s personal assets cannot be touched. This protective limited liability feature of a Private Limited Company is not available in a sole proprietorship or partnership, where the individual or partners are personally liable for all business debts.
- Private Limited Company can raise capital by issuing stock, bonds or other securities.
- Private Limited Company is the most enduring form of business structure. If a Private Limited Company shareholder owner dies, their portion of the business can be transferred quickly without interruption of the Private Limited Company operations.
- Estate and family planning is simplified since shares of a Private Limited Company can be easily transferred or distributed to family members.
- Private Limited Company often experience greater ease in doing business. Many banks favor corporate accounts.
- The main advantage in incorporation as “Private Limited Company” is to avoid personally liability for debts and lawsuits.
Why risk all your personal assets during uncertain times, easily affected by unpredictable markets, when you can protect them from failure – by incorporating your business as a “Private Limited Company”.