Wanting to Start a Business in Singapore

634 Words2 Pages
bulb-icon

Recommended: What is a sole proprietorship? what are the major advantages an disadvantages of this form of business ownership

Anyone hoping to start a business in Singapore should know the different types of company setup. Basically, there are four main types of companies in Singapore.
1. Limited Liability Company
A Limited Liability Company (LLC) is more often not limited by shares. The owners of the company are protected from liabilities that may arise from the business. An LLC usually operates as a separate legal entity, quite similar to a corporation. There are three types of LLCs in Singapore: Private Limited Company, Public Limited Company and Public Company Limited by Guarantee.
- Private Limited Company (Pte. Ltd.): This type of LLC is a preference for a lot of business entities in Singapore. The shareholders are not held responsible for company debt that surpasses share capital contributed. The company’s shares belong to 50 people or even much less. These shares are often owned by a corporate entity or an individual and are not available to the public at large. It is a preference for many because it is easier to manage. Shares can easily be transferred; it has easier means to raise capital, and offers a more credible image.
- Public Limited Company: This type of LLC is different from a Pte Ltd. The shares of a company are often available to the general public. These companies will be found in stock exchange. The number of shareholders is at a minimum of least 50 people. Given that these types of companies involve the public at large, there are more rules and regulations that avoid exploitation and the misuse of public funds. This option is best for large businesses.
- Public Company Limited by Guarantee: Unlike a Public Limited Company and a Private Limited Company, this type of company is set up for non-profitable reasons. It is a public co...

... middle of paper ...

...iness and contribute to its management. This company comes along with benefits similar to those found in a private limited company. This partnership is best for business where professionals have a joint practice. 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. The best choice for a lot of business people and entrepreneurs is a private limited company.

Show More
Related

  • Fenton, Hoffer And Le Tuan Case Study

    725 Words  | 2 Pages

    Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.

    Read More

  • Summary Of LIT1 Task 1

    824 Words  | 2 Pages

    Liability – The general partners are all responsible for the debts and obligations of the business, but the limited partners are only liable up to their invested amount.

    Read More

  • Analysis of J Sainsbury’s

    7599 Words  | 16 Pages

    There are many types businesses in this world; these include Sole trader, Plc, Ltd, Partnership, Co-op and franchise. These types of businesses are all different from each other. Some of them need just one owner, some have hundreds.

    Read More

  • Types of ownership Both Cadburys and Sainsbury's and plc’s (public

    368 Words  | 1 Pages

    Limited companies are owned by shareholders. These are people who own shares in the company. Shares are the parts into which the value of the company is divided. So if a business is valued at £100 million and there are 200 million shares, each share will be worth 50 pence.

    Read More

  • Examining Termination of Agency Relationships: Peter and Alice

    995 Words  | 2 Pages

    Capital is a major factor for decision making. Since the business involves a group then the three forms of business exposes the group to a greater capital availability. The liability of members is also an important factor. The partnership offers unlimited liability to the members of the partnership while the corporation and Limited Liability Company allows the members limited liability and thus their personal assets cannot be interfered with in the event of a liability. The decision making process is for the business associations but the input of all members results to the making of good and informed decisions. Finally, the taxation practices for various forms of associations informs the decision. Corporations are often taxed twice whereas the LLC and partnership business is taxed

    Read More

  • Brennan's Inc.: Legal Case

    587 Words  | 2 Pages

    Distinct legal entity separates from individuals who compose it, thus insulating the shareholder from personal liabilities. Generally, shareholders are not personally liable for corporate

    Read More

  • An Analysis of Boots

    6046 Words  | 13 Pages

    Public limited companies have advantages that they can expand their organisations into different businesses and conglomerates. This protects the firm from dealing in one market. Ø The organisation can be on the stock exchange and this enables them to offer shares for sale publicly. Due to this PLC's can acquire ready capital for further development if they ar... ...

    Read More

  • An Analysis of GlaxoSmithKline

    11293 Words  | 23 Pages

    Below I have set out a table to show the Advantages and Disadvantages of a public limited company. ADVANTAGES DISADVANTAGES Shares offered for sale on the stock exchange, so that large amounts of capital can be generated. Shareholders protected by limited liabilit... ... middle of paper ... ...ibit the already efficient practices from continuing.

    Read More

  • Tesco And Chester Zoo: Similarities And Differences

    1448 Words  | 3 Pages

    And there are some advantages of a public limited company such as there is limited liability for the shareholders which mean the maximum losses that will cause are the amount that the shareholders invested in that company it won’t cause more than that so for the investor the risk is limited. Other than that the public limited company’s potential capital that they can raised is large they can raise fund by selling shares or borrow from bank. Also public limited company is easier to obtain financing because most of the banks and financial institution would like to invest to the larger company just like PLC. PLC have high continuity although the helm of company step down the company can still operating normally because shareholder can transfer their shares to anyone. There are many advantages of PLC but it still have some disadvantages for instance :PLC must make public annual financial report of the company also if the company close the liquidator must be realize the all assets to distribute to all creditors and shareholders. So the owner of Tesco are those people who bought the shares of Tesco. Furthermore, every year Tesco will held the annual general shareholders meeting. Tesco will report the annual accounts, strategic report and directors' report etc. to the shareholders in the meeting. Therefore the shareholders of Tesco can have more information and data to grasp more about

    Read More

  • Exploring the Types of Business Organisations

    2370 Words  | 5 Pages

    Forms of Private Sector ownership are: Sole Trader, Partnership, Private Limited Company, Public Limited Company, Franchisee, and Co-operatives. Sole Trader These are... ... middle of paper ... ...ility. This is why many small businesses that have only a small number of partners will change their business ownership and become a private limited company. Background Information When Mac and Dick McDonald first ran their restaurant in San Bernardinosuccessfully for 21 Years it was a form of partnership, in which they made high profits which they were happy with.

    Read More

  • Company Choice: A Soul Proprietorship

    750 Words  | 2 Pages

    Similar to a sole proprietorship a partnership can be started easily and is easy when he comes to taxes in filing each partner is taxed according to the amount of sharing the holding the business this also means profits ar...

    Read More

  • Business Ownership Types

    1802 Words  | 4 Pages

    There are two types of limited companies: Private and public. Shareholders own private limited companies. Members of the public cannot buy the shares and the shareholders cannot buy or sell their shares without agreement from the other shareholders. Family owned businesses or larger businesses such as Virgin would fit into this category. Public limited companies have shares on the stock market and can be bought and sold by any member of the public, this way the company can raise further capital and expand their resources. Tesco and British Telecom are such examples. Both these types of limited companies have limited liability, which means the owners of the business are only liable for the amount they invested in the business (unless the debt is so large that the business has to be sold to repay the debt).

    Read More

  • Essay On Partnership

    883 Words  | 2 Pages

    Before a partnership formation is imminent, the business needs to decide on which type of partnership to form. There are three types of partnerships: (1) general partnerships, (2) limited partnerships, and (3) joint ventures. All three partnerships contain two or more owners, but all partners assume equal division of ownership, liabilities, and profits in a general partnership. Limited partnerships offer limited liability protection based on each partner’s contribution percentage. Joint ventures are classified as general partnerships with limited existence periods. Once a type of partnership has been determined, the business fulfills a series of requirements before the partnership can be successfully formed. The first step is to register

    Read More

  • Advantages And Disadvantages Of Limited Partnership

    1008 Words  | 3 Pages

    Limited partners are regarded as passive investors and their shares may be subject to security regulations

    Read More

  • Mike And Yap Case Study

    1300 Words  | 3 Pages

    According to Section 42 (1) Companies Act 2016, a private company is also known as a company limited by shares and the number of shareholders must not exceed 50 people and the minimum number of shareholder is 1. With the following Section 11 (2) Companies Act 2016, there should have issued shares capital in a private company.

    Read More

More about Wanting to Start a Business in Singapore

Open Document