It is one of the most favored business entities in the business world of Singapore these days as it requires least compliance of rules and regulations. This compliance privilege had attracted a number of small Singaporean companies, which were private limited companies till then, to convert into Exempt Private Companies. Exempt Private Companies were exempted from statutory auditing requirements if their annual turnover remains below S$5 million. These companies can submit only a solvency declaration duly signed by company’s secretary and directors instead of filling audited annual accounts. A solvent exempted company can file its annual audited accounts with the registrar of ACRA, if due to any reason it is unable to submit the declaration in the prescribed form.
It requires a great deal of organization and planning beforehand. With this in regard, it more often than not required that a lawyer draws up the agreement. All the business entities and structures are best suitable for different scenarios. A local in Singapore would for instance work best with a Sole Proprietorship if they are the only owner and if the products and services do not present risks and liabilities. If you are a professional who is looking for starting a business with several partners in your field, then you can consider a Limited Liability Partnership.
Business Model of FlipKart (Company as a Whole) Now as I mentioned earlier in the above section that FlipKart is not an Indian Regulated company any more, it is registered in Singapore and has many more subsidiaries to carry out related businesses to diversify and derisk its revenue model from those of the competitors. Following are the various revenue lines that FlipKart has for additional sources (allied to its core business) of revenue: 1. Web Portal (E-Commerce : Highlighted Above so not getting into the depth of this) 2. Web Portal Listing Fee and Convenience Fee (Sellers charged listing fee for selling on FlipKart and Customers charged Convenience Fee for faster
• Many investors are now turning to Singapore for the establishment of their operations due to various grounds. The ease of operating and setting up a business is a key motivator. Another vital determinant is Singapore’s popular tax regime-famously known for its eye-catching personal and corporate tax rates, lack of capital gains tax, tax relief measures, widespread double tax treaties and one-tier tax system. Brief History of Singapore Taxation Income tax was introduced in Singapore in the year 1947, under the British colonial rule. The Income Tax was later imposed in 1948.
Singapore has a tremendous amount to offer our company if the decision is made to locate there. Here are some more reasons that further underscores why venture of all sizes consider Singapore the perfect location to setup their company or business (Get to Know Singapore, 2016): Singapore is ranked the third wealthiest nation in the world by Forbes magazine and has been ranked as the third most globalized economy among 60 of the world’s largest economies according to Ernst and Young Globalization Index. Corporate tax rates are about 8.5 percent up to 300,000 dollars’ profits and a flat 17 percent above that and there are no dividend or capital gains taxes in Singapore. In addition to highly competitive tax rates, there is no estate/death/inheritance tax in Singapore. Its business history is relatively short at about 50 years, and despite such a short history, Singapore has grown to be the number one country in the world for foreign investors.
Private Limited Company The advantages in a ltd company are that you have limited liability and will only lose what you invested. You can raise the company’s capital since it can have up to 50 shareholders. However, growth might be limited to the small amount of shareholders and you need the agreement of other shareholders to sell your shares.
A private limited company cannot offer their shares for sale to the public at large, which makes their ability to raise money limited. A public limited company is an incorporated business and is a large organisation which shares are sold in vast numbers. Franchises are company’s which are authorised to sell a goods or services in a particular place. As a small clothing and accessories business that has grown from a small company to a moderate sized business Mr cannon will benefit from a sole trading business analysing the characteristics. The characteristics of a sole trader include:- Setting up: Mr Cannon must register as self-employed.
Singapore does not levy the wealth or inheritance tax, the capital gains are tax-free, and most importantly, it implements the one-tier corporate income tax. Singapore has a vast pool of English-speaking workers that are motivated. This workforce is rated as the best labor force in the world. Singapore ranks #1 in the Ease of Doing Business indicator, for the best investment environment, most open economy for international trade, and for the investment potential. Among the largest economies, Singapore is the 3rd most globalized economy and ranks 3rd among the wealthiest of nations.
The company will offer awareness for future consumers, while offering an optimal user experience by bringing quality products to market. • Finance/governance: Alibaba had the largest IPO, raising USD $21.8 billion for the company. The company’s governance concentrates the voting power in the hands of management, leaving the checks and balance system weak (Wilson, 2015). • Harvest/exit: One man’s IPO is another man’s exit strategy. Alibaba’s exit strategy was to take the company public to raise capital, however, according to the governance top management have all the voting rights as opposed to shareholders.
Private limited company 4. Limited Liability Partnership (LLP) 5. Limited Partnership The majority of local and overseas individuals or entities prefer to start their business in the form of private limited companies. Things You Need ahead of Singapore Company Registration Locals(Singapore Citizen/Permanent Resident) must have a SingPass to log in into the bizfile portal of ACRA (SingPass is an online account management for access to Government e-services of Singapore) Foreigners must have an Entrepreneur Pass (EntrePass) or Employment Pass (Pass) to act as a director of the company. To have a valid SingPass applies to foreign individuals also.