Foreign investors and entrepreneurs may either incorporate a company or register a business firm and yet enjoy similar tax benefits in Singapore.
Considered as a tax resident, a private limited company and a limited liability partnership are entitled to corporate tax exemptions on their first three years of assessment for their first S$100,000 accumulated revenues.
On the next S$200,000, the corporate tax is discounted by 50% and thus be levied by 8.5% only, says Say Hun, a business specialist and market analyst in Singapore, for profits collated above S$300,001, the corporate tax is flat at 17%, a rate that is among Asia Pacifics lowest.
A private limited company is a popular business structure in Singapore. It is distinguished with a legal status apart from its owners. Hence, using its company name, it can enter into any legal contracts, engage in activities including lawsuits, and acquire assets and liabilities.
The shareholders are protected from accountability of a private limited company. They can merely be held liable as far as their shares in the company are concerned.
Meanwhile, a limited liability partnership is a new business structure introduced to Singapore. It features the characteristics of both a company and a business firm, in particular the partnership.
It provides flexibility of operating as a partnership while having a separate legal persona like a private limited, Hun continues elucidating, pointing out that business firms such as a sole proprietorship, partnership, and general partnership are not given a legal status.
Constituting a private limited are a resident director in whose authority rests the companys headship, at least a shareholder, and a company secretary. A limited liability partnership requires a minimum of two partners and a resident or local manager.
Composing Singapores attractive business policy is the right of foreign businessmen to acquire 100% of shares in a company or firm. They can also take the position of a resident director in a private limited company and resident or local manager in a limited liability partnership. Such is made possible by obtaining an Entrepreneur or Employment pass.
Both the Entrepreneur and Employment passes are Singapores premier labor pass, elaborates further, they have similar benefits and almost the same requirements.
The only matter that separates them is the educational requirement. Whereas, in an Employment pass, the foreigner must have earned his or her Bachelors degree in a college or university, while in an Entrepreneur pass, the same is not required.
Either way, Rikvin maintains its expertise in providing corporate solutions to businesses. Its team of professionals specializes in registering a company or firm with various packages such as availing nominee services for foreigners wishing to start a business without relocation to Singapore or handling a labor pass application. Rikvin also offers accounting and chartered secretarial services.
About the Publisher: Rikvin provides corporate solutions to investors and entrepreneurs in the local and abroad. Among its specializations are Singapore company registration and business firm and providing professional services relating to finances and administrative. Rikvin specializes in processing working visas and providing services such as nominee director, nominee shareholder, nominee agents, accounting, payroll, and secretarial.
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, Rikvins 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.
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