Follow these steps to form a company in Singapore

Every businessperson loves to expand his/her business outside their nation. If you are exploring your options, consider Singapore.  Starting a business in Singapore is lucrative; this is because it is one of the least corrupt nations in the world. The governmental policies are such that they permit businesses far easily than other developed nations. The governments as well as the businessperson’s interests are well taken care of. There are ways to make your life easier if you wish to start a business in Singapore. The following 5 points must be noted before the start of your business in Singapore:

1. Adhere to the legal conditions that come along with starting a new business

The best way to stay out of trouble is to follow all rules; it is a rule of thumb. This is the best way to begin a new business in Singapore, or anywhere else for that matter. It is best to start the business without legal hassles. You will avoid a lot of roadblocks in the future if legal issues are taken care of right from the start. If you follow all legal procedures from the beginning then it is easier to trace your steps back in case there is some mishap.

2. Seek professional help if needed

Legality is not everyone’s cup of tea. The Singaporean system is surely easier than other foreign systems but it too can have its complications. Seek professional help to deal with it. In case you believe that your expertise on legality is not enough to get you through this process a professional accountant and lawyer would make life easier. Make sure you hire someone with adequate expertise and skill to handle this market’s needs.  A professional will save you some time and will take care of the matter as (s)he is more likely to be better equipped to suit the needs of the Singaporean system.

3. Keep yourself updated with new details regarding your market’s legal needs

In 2010, the Singapore government changed some of its laws regarding the EntrePass and other such trade related activities. This revision was to keep up with new trends so that they as well as the entrepreneur benefits from the move. They made some significant changes then. Do make sure that you keep track of such issues while building as well as after building your business. You can avoid a lot of legal issues if you keep abreast with happenings of such kind. In case you have sought professional help please make sure they are in sync with it and that you know their next actions.

4. Make sure you get capital upfront

On registering with the Accounting and Corporate Regulatory Authority, if you are a private limited company you need to pay at least $50,000 as paid-up capital. So make sure you have your resources before-hand so that you can avoid last minute hurdles. You do not wish to lose a golden opportunity because you took certain things for granted, not would you? A Singpass might be helpful in such a case and you can get it done online. Insist that you take care of such matters way before the deadline.

5. Place of business

The Singapore government does not permit for the sale of land within Singapore to a non-Singaporean. Make sure you know this well in advance before you bring your business. Leasing out office space is the only option you have. Remind yourself to invest in such a location that will attract the kind of audience you wish. Land might be cheap in a certain region but if your customers are not present there, you will end up losing much more than you began with. Therefore make sound investment with renting out a place.

We hope that these steps help to achieve the success you wish to find in the land of opportunity known as Singapore. The Singaporean market is exciting and will give the impetus to newer ideas and fresher perspectives. Do realise this and make good use of the opportunity Singapore provides you with, if you chose to pursue with them. Good luck with your new venture. We hope you find this as a progressive step towards your business.

5 things to know to setting up a company in Singapore as an expat

Singapore is a lucrative country to invest, especially since it has been declared as one of the most rapidly growing economies of the world. This is especially lucrative to an expat, who can invest with new innovations in this market, without fearing too many regulations.  Tags such as ‘one of the least corrupt countries in the world’ and ‘one of the most pro-business countries in the world’ make Singapore an ideal investment destination. Is Singapore on your mind as a future destination for your capital? Look no further. We have compiled a short list of things to do before setting up a business as an expat in Singapore.

1. Applying for the EntrePass

This is a must for any expat to set up his/her business venture, enterprise or business branch. This is a type of visa, special pass that will allow him/her to stay in the region so that (s)he can apply for conducting business in Singapore. This allows you to be actively present in the region as you set up your business. There are some requirements to be fulfilled before you can make the cut.

1. The choice of your business must be a Private Limited Company. You must also have it registered as such.
2. Not more than 30% of all shares can be in your name.
3. A SGD 50,000 paid-up-capital must be available for your company.
4. There should be at least a difference of 6 months prior to the application of Entrepass and the registration of the company.

2. An Employment Pass is to be obtained for the resident director and the secretary

Since it is a necessity for an international company to have them residing in the country of business the EP is needed for both the resident director and the secretary.  The importance of the expats CV, business plan, qualifications and work history cannot be overemphasised. Include them in the application form as well.

3. Procedures before the ACRA

The registration process is simple and short so long as you take care of the following points beforehand:

1. Adhere to the eligibility requirements
2. Check if the name of your company is available with The Singapore Network Information Centre (SGNIC)
3. Each business in Singapore has a Singapore Standard Industry Classification (SSIC) code. Find it for you company.
4. Locate a suitable place for your business.
5. Get the required licenses and permits for the business
6. In case you need help with the process hire a professional

4. Registering for ACRA.

Follow these steps to form a company in Singapore

Once the entrepreneur registers with the Accounting and Corporate Regulatory Authority (ACRA), his/ her legal company is set up through a web-based filing system, BizFile.  Registering will cost you about SGD 300 – SGD 1,200, plus SGD 15 for the approval of your business name. The businessperson can set up the business based on the following business structures Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), Limited Partnership (LP) and Company. You need to turn to two local agents, who are legal residents of Singapore to act on your behalf while starting a business in Singapore.

5. Taxation

Any income received in Singapore is subject to its income tax. This is subject to the business the expat has set up as well.  There are special taxes that business owners have to bear with along with the usual. They include Goods and Service Tax (GST). This is levied on the import of goods and services. Each type of good or service has a particular tax rate that is based on certain criteria. The following are the tax rates that are levied on the basis of the type of goods:-

1. Income Tax: depending on the type of business
2. Goods and Services Tax (GST): 7%
3. Withholding Tax: 10-20% (depending on the purpose)
4. Property Tax: 10%
5. Stamp Duty: depends on the value of your transaction

It is not a bad idea to seek professional help to deal with all the financial issues. A good accountant will surely reduce several forms of hassles one deals with such businesses in Singapore.

Now that you have the required tips, get going! Singapore won’t wait for anyone, so what is stopping you from doing your best todo well? Good luck with the new business.

How do I choose a name for my business?

When starting out a business in Singapore, it is important that you determine the name that it will be go by beforehand. The name reflects the identity of your brand but also gives insight on the kind of services that you offer. Be sure to determine if the name that you have picked is available on the web or it is taken by someone else.

You need to have it properly registered and protected for the long term. Most people use their own names as the business name. It is important that the name that you choose presents a professional image in order for you to build brand awareness.

You need to consider how the name will appear be it on the web or on your logo. Think about it on the social media. Does it provoke interest on a person to pursue your line of business for services? Most people are drawn by the name of a business therefore keep this in mind as you determine a name for your business.

Depending on the kind of business that you are into, the business name should reflect the culture of the business with an appeal to the target users. You need to decide if you want to make it appear corporate or more like a personal business. This will help you decide on the name that you settle on for the business. You need to ensure that the name you choose is not claimed by others either on the web or offline.

Go ahead and search for Trademark search tool to check for a similar name to the one you have picked. It is good to remember that infringement of trademark can earn you quite some for your business.

If you plan on having a web address or URL you need to ensure that it is available using WHOIS database for domain names. This will help you to know if the name is registered online under someone else and a web search will give you results. Make sure that your name is unique and also rich in words that mirror your line of business. If your name is available you should claim it right away and then go on to register a domain.

In case you plan on going corporate, you should contact your state filing office to determine if the name has been claimed yet. You can still go on to use it even with another one in existence as long as the services that you offer are in a different location from the existing one.

You can then go on to register the business name and to be able to do this you need to notify the government of the presence of your business with the name other than your own name. This is in case you are using a name for your business that is not the same as your personal name. This step does not apply in case you pick your personal name for business.

Next you then apply for trademark protection which protects names, symbols and logos. Remember that your name is one of the most important business assets therefore you need to protect it. There is a charge to filing a trademark which needs to be met.

When starting a business in Singapore you need to pick a catchy name to be able to hook your customers to your business. Think about the appeal that the name you choose will have on your customers and go that way. Since you want to have a name that will remain in the minds of customers without forgetting, you can settle for one that is short and to the point.

Your business name is the top consideration when starting a business in Singapore since you want to make an impact on your users. To be able to get noticed in the myriad of other businesses in the country it is therefore important that you select a name that is well thought out so that at the mention of it your customers get a vision of what is on offer to them. This will draw them to come to your business without hesitation bringing growth to it.

Setting up a Company in Singapore as an Expat

Singapore is appealing to most people who wish to set up business due to the fact that it has open market views. It is the easiest place among other developed countries for an expat to be able to set up business since its corporate tax is reasonable. The wide cultural diversity that is found in Singapore makes it one where it is easy to have access to talent based on the available workforce that collects there.

The Singapore government provides motivation and help to some industries of those who start a business body there. This comes in the form of tax and financial incentives given to the development schemes listed by Economic Development Board of Singapore to assist businesses. Provision is made for assistance that relates to financing, capabilities and management development. Innovation in addition to technology and the access of the start-ups to markets is also provided by Singapore for young start-ups as well.  The assistance that an expat gets from the Singapore government while starting out in the country is a good initiative to get him on his feet soon enough.

There are free trade agreements in Singapore that is made with major world economies that benefits international firms in the country a lot since it helps reduce the tariffs on imports. Since there no tax imposed on capital gains in Singapore also works to draw expats to invest in the country. A company can have as many Employment Passes as they like despite how big or small it is and this is issued purely on merit.

As much as it is relatively easy for one to set up a company in Singapore, the special pass that enables one to be able to get authority to transact business in Singapore known as the EntrePass is a requirement. This enables one to set up a business branch and enterprise or even a company by allowing an expat to be able to stay in the region and make an application to do business there. The EntrePass is a basic requirement to enable the incorporation of a company since registration with Accounting and Corporate Regulatory Authority is necessary. This is done through the filing system available online known as BizFile.

Before starting out an application to set up a company in Singapore, an expat needs to have some details on his fingertips. This is what is required to fill out the application form and consists of details such as his CV and business plan. His qualifications and work history need also be included in the application well articulated with no spelling mistakes and in a clear way to enable the one who reviews it give good points to the expat. It is required that the expat makes copies of his qualifications and previous work certifications which should all be attached to the application.

An expat is also required to give reasons and also his mode of doing business in the country. He should also set up a fixed term savings account while awaiting the EntrePass. After a week’s wait and having been given the Banker’s guarantee letter from Ministry of Manpower he will then submit his guarantee, letter and passport to the MOM with a small fee that is charged. He is then issued with a green card and given a month within which to submit particulars about his new company to the Ministry of manpower.

The ease with which one is able to get a permit to set up a company in Singapore makes the country an accessible place of business with the right resources that are needed for business startups. It is for this reason that the country enjoys global attention from expats who seek visas so as to be able to successfully send applications to do business in Singapore.

The facilitation of a system to enable expats eyeing prospects of running business overseas within structures that offer competitive activity in the business world works to bring more of them to Singapore. That, coupled with the conducive business environment successfully sets the country apart among others in Asia for global trade to take place within its borders.

How Can Foreigners Start A Business in Singapore?

Singapore has a reputation as a port with most activity for foreign investment and business both for the Singaporean as well as foreign entrepreneurs. There are many business opportunities lined up in Singapore for any of these parties that might be interested in investing here. The smooth registration process for business here makes it an attractive place for foreigners to come do business with guaranteed growth.

It is important for one to understand the way of setting up a business in Singapore from scratch as a foreigner to Singapore. To start with, one needs to ensure that he attains the correct visa. A foreigner coming to do business in Singapore has to get a work pass called the EntrePass  that is for foreign business people to launch a business in Singapore and to maximize the usage of business opportunities available in Singapore.

The ministry of manpower together with the Standards, Productivity and Innovation Board Singapore usually process the application for the EntrePass and those with approved EntrePass applications will have the benefit of the working pass up to two years. This period is renewable on expiry if one meets all the requirements. On expiry of the EntrePass on condition that it is feasible for a renewal of the work pass a three year validity period will constitute the EntrePass.

The registration of a company is done through Bizfile which is a system for use by the Accounting and Corporate regulatory Authority to register businesses in Singapore. Bizfile also caters for registering of the expansion of business in the country, which could also include any branches of a company.

Appropriate procedures and information on the subject of the registration process can be accomplished through agencies as Monetary Authority of Singapore (MAS) as well as the Attorney-General Chamber’s. All the information that is needed to aid in the financial and accounting and also legal businesses is offered by these agencies. Any other information need on how to venture into business is available at the International Enterprise of Singapore. This makes it easy for a foreigner to find his way into the business world of Singapore for investment purposes.

Locations in Singapore that one can position or place his business offices and company can be provided on request by the Economic Development Board that has wide-ranging facts about industrial and business parks setting in Singapore. This is used to give out to foreign people who are keen on finding suitable locations for the operation of business in the locality. This makes it easier for foreigners to pick out opportunities available to them to place their business activity. Depending on the kind of business that one is interested in putting up he can then decide on the most suitable region to ensure growth of his business.

There is a vast local talent in Singapore that any foreigner desiring to set up can take advantage of in the running of his business. This can be accessed through recruitment portals as well as recruitment agencies that help the human resources division of a company. EntrepriseOne is a website where one can get information on the training as well as accessibility of manpower for employment. In case one is interested in the provision of training programs to equip the local labor EDB helps to provide the relevant ones to the business.

Beginning a business in Singapore is relatively cheap and all that is needed is a valid business address and credit card as long as you have valid employment pass for yourself and dependants that you wish to bring along. Additional requirements are the need for a minimum of two directors to be able to start a business. A co-director of convenience with little say about the running of the company can be found.

You will also need someone to audit your books and this can be found locally from the abundance of manpower in Singapore. Alongside that you also require articles of association and then pay some capital which is not much by any standards.

The process of establishing a company in Singapore is an easy one compared to other business hubs in the world and this is the reason that many foreigners from all over the world are drawn here to set up various business enterprises.

How to Choose Accounting Services in Singapore

Starting a business regardless of its size, whether small or big, is not easy. There are a lot of things that require your attention such as scheduling a business meeting, marketing every brand and service, and selling a product. Not to mention the accounting and book keeping aspects of the business. With all of these responsibilities, it takes great courage to forge ahead with your dream of setting up a business. Another thing is it would seem daunting if you may not be quite knowledgeable about accounting and book keeping. However, this should not discourage you since there are always many top accounting services in Singapore to provide the accounting services that your company needs.

In every firm the presence of an accounting service provider is vital to its existence. Accounting functions are essential in your business as they guide you in knowing whether the business is gaining or losing. Its functions are not only limited to this however. The accounting service provider systematizes your employees’ payrolls, bank reporting and sales tax.  In matters related to bank reporting, the accounting service provider helps you with these; it checks any bank loans you have and makes sure that you possess base certificates. Doing every financial statement and filing income tax returns may also be performed by the accounting team on your behalf. Imagine the time you will save and you will be free from doing all the tedious accounting tasks when you hire the services of an accounting service provider.

It is indeed no joke to establish a company and it may even take time to make it a success, but it is always possible to reach your goals as well as objectives with the help of your accounting staff that can act as your partner in reaching your goals since it prepares financial statements to keep track of the progress of your business. By having all these organized by a certified public accountant (CPA), it is a big help for your business to move forward and with your books all organized, you can make better business decisions.

All accounting firms promise support as well as services to address your business issues but the truth of the matter is some of them may not be able to keep such promises and may fall short in some aspects. Thus, it is of great value to your company to do thorough research before choosing the accounting firm to provide your company with the best accounting service. It is a must to see their track record and credentials before hiring them. It is but wise to know the services the firm provides. By visiting the firm rapport can be established as well. It is vital that you trust the firm as it is in charge of the financial well being of your company.

How to choose accounting services that would click with your company then? How would you know the accounting firm is the right one for your company? Here is a list of the things to consider as your requirements while making your search:

It must provide most of the services mentioned below:

• Competent and professional accounting services
• Record keeping and accounting which involves income, track of assets, expenses and liabilities
• Tax advice along with tax compliance and tax planning
• Auditing that includes actual auditing, bank and account reconciliation and audit schedules, preparing business financial statements and management of financial statements
• Business planning that involves tax situations advices, accounting system selection, review and implementation, establishing effective accounting system, internal control, financial plans as well as cash flow statements, inventory pricing, etc.
• Payroll services
• Complete set of accounts
• Annual reports as well as group consolidation

It must consist and possess the following mentioned below:

• Accounts manager: The accounting firm must have an Accounts Manager who handles your business accounting needs. He must have extensive experience to organize as well as review submitted information, thus being able to develop as well as maintain your business accounts ledger. He must have the skill to draft the business financial statements based on Financial Reporting Standards (FRS).
• Registered auditors and accountants: Their office is essential in your company since your business needs professional auditing as well as accounting services. They must have the capacity to provide reports at the right time and the compilation of the yearly account data.

Start a Singapore Company

A modern territory where every intellectual property right is respected, English is used as the language in the workforce, there is an abundance of skilled workers, there is a liberal business policy, political stability and the presence of developed infrastructure, Singapore has become the locale for global businesses. Global businesses consider it beneficial to establish a Singapore company. With its strong investment and trade, Singapore among Asian countries is considered as the most competitive and the easiest country in the world for doing business.

A great number of multinational companies prefer to start their businesses in Singapore along with the 154,000 enterprises in small as well as medium scale. Singapore is viewed by business owners worldwide as a perfect location for growing their businesses. Singapore has made a name for itself as a distinguished regional and financial trading centre. Considered as the busiest port in the world, Singapore is a major investment location in the Asia Pacific belt.

As a non-resident, a multinational or a small and medium enterprise, starting a Singapore company will give you more opportunities to the other developing economies of the region. Aside from this, there is a lot to gain from the large network of Singapore’s trade agreements, “ease of doing business,” an appealing tax system and protection on intellectual property.

Singapore is a “country of both worlds” where the East meets the West. Its society consists of a blend of American, European and Asian cultures making it friendly and attractive to the global business community. Once a British colony, Singapore’s financial and legal structures are very similar to the UK and the US. Leading international banks, financial institutions and multinational organizations worldwide have branches in Singapore where their branch offices in Asia are located. Singapore is known as the “Lion City” as it possesses strong currency as well as infrastructure making it the perfect spot to launch overseas firms.

Geographically, Singapore is an ideal setting for international business and trade. It is fairly effective to reach other Asian countries from Singapore. Frequent air travel with daily outbound and inbound flights makes business operations more convenient and easier. Singapore maintains favorable international contact with some counties related to trade and industry. At present, it has 27 economic partners such as the US, Korea, China and Japan with 20 free trade agreements.

In Singapore, it is quicker and easier to set up a company since it only takes a day for the process to be completed provided that the application has been submitted after the appropriate requirements have been completed as compared to other international business hubs. Anyone can own a Singapore company including foreign persons. The incorporation has made a fast and easy procedure online where application forms are submitted.

In terms of business taxes, Singapore offers a friendly environment. Its corporate taxes are lower than in those countries which are more developed. Singapore together with some international jurisdictions entered into the avoidance of DTA (Double Taxation Agreements) to ensure its financial prosperity and success. By setting up their global headquarters in Singapore, companies are benefited by the country’s network of more than fifty “comprehensive Double Taxation Avoidance Agreements,” the Investment Guarantee Agreements and free trade agreements.

Singapore companies are registered under CAP 50 of the Companies Act. They can at least have 1 member which could either be an individual or a corporation and are expected to observe the regulations, rules and laws laid down by the Inland Revenue Authority of Singapore, ACRA, etc. Generally, Singaporean companies are also formed under CAP 50 of the Companies Act mostly incorporated as the Private Limited Company type.

It is necessary for a company to be first incorporated in order to begin doing business in the country. It must register with ACRA (Accounting and Corporate Regulatory Authority). After payment of registration fee is done and all documents are set, generally it only takes 15 minutes for a company to be incorporated. A branch office in Singapore should register with ACRA. A branch office however is not benefited by exemptions and tax incentives as local businesses are. A representative office should register with the Monetary Authority of Singapore or the International Enterprise Singapore. It is not authorized to trade in the country. It rather undertakes every marketing as well as oversight activity in the country for its parent company.

When is Registering a Business or a Blogshop in Singapore Needed?

Many people consider Singapore the best place to set up their businesses. There are many reasons why more and more people choose Singapore over other countries. These reasons include the strategic location of Singapore in Asia, the talented workforce, the blend of all cultures, etc. As in any country there are always rules to follow before registering a business, if you wish to set up your own business in Singapore you must also observe certain rules.

What does the law say?

According to the business law in Singapore written in section 5 of its Business Registration Act, in general, registering all types of businesses with ACRA (Accounting and Corporate Regulatory Authority) is required in Singapore. It does not matter whether you are planning of setting up a limited partnership, a limited liability partnership, a company, a partnership or a sole-proprietorship, you are required by law to register your business since generally registration of business in Singapore applies to all business types such as these.

What are the exemptions?

However, there is always an exception to the rule. Thus, Singapore law exempts certain entities from registering with ACRA. These entities include licensed hawkers, pond keepers or farmers, trishaw riders, taxi drivers and craftsmen. The licensed hawkers mentioned refer to those who register with NEA instead of ACRA.  Taxi drivers are required to register instead with the taxi companies. There are actually categories for craftsmen and the craftsmen mentioned refer to those who work and produce their goods privately in the confinements of their own abodes or domestic premises. The goods produced by these craftsmen are not displayed in public and the services to make such goods must not be rendered by employees who are not a member of the family.

In addition to this, registration of business in Singapore with ACRA does not include certain charitable organizations and societies although certain governmental organs may require these organizations and societies to register with them instead.

Do blogshops need to be registered?

Now that the popularity of blogshops is increasing and more and more people are setting up their own blogshops, many ask if they still need to register if they have one. The answer is YES. Due to the increasing number of these new online businesses now there is still a possibility for some to remain unregistered. ACRA however states that the rule in registration of business in Singapore does not exempt blogshops. Not only that but also since these blogshops are content providers online, they are all the more required to register and follow certain rules.

What if the blogshops are unregistered?

If the above mentioned blogshops fail to register, their owners may be fined or even imprisoned.  Additionally, if a certain blogshop business is unregistered the owner cannot avail of any contractual right against his client who failed to pay for the products he delivered to him. This means the unregistered blogshop owner cannot have the legal remedies for reclaiming payment. There are however certain meritorious cases where the unregistered owner may go to court to be given special relief.

What is the process for registering a business in Singapore?

Registration of business in Singapore is actually easy and fast which could only take as short as 15 minutes. As long as you have all the necessary requirements for the registration which include following the provisions on the appointment of a local manager for your company, your company name, the SSIC code for your business, your business address, Medisave accounts applicable to citizens and permanent residents only, license requirements, your business Memorandum and Articles of Association, and some documents for the incorporation of companies, the possibility of your business being approved is strong. With all these requirements and documents ready, all you have to do is check out the website of ACRA and follow the instructions for registering your business. Charges may vary for every business entity. Obscene and offensive business names are considered inappropriate and are not accepted in the registration of business in Singapore. Moreover, ACRA does not accept business names that resemble the names of the existing brands. For those who own a start-up business, if they want know the upsides and downsides of every business entity, they can always check out the website of ACRA.

Is Singapore A Business Friendly Country?

Singapore is ace when it comes to business friendly countries. According to Santa Ana Charles Hart City Council Ward 3 website, business friendly refers to low taxes, low fees, few and fair regulations, educational and training opportunities and a safe working environment for the business and its customers. Now that we know that Singapore is ranked first, this all means that business opportunities in Singapore are extremely high. Reason being, just by the fact that Singapore has managed to stay at the top for seven consecutive years. Many people are still admiring the country’s efficiency.

The ranking was determined by exploring the eleven areas of business regulation. This involved- just to name a few- the ease of starting a business, getting construction permits, electricity and credit, paying taxes, enforcing contracts, getting support from the government and employing workers.

When it concerns business opportunities in Singapore, there are a few things to take note if you want the recipe to success and to blow away the competition. First up, it is important for a business to have a friendly and efficient way to dealing with contacts. By the time you exceed all expectations and achieve  exponential success, your company will get the competitive advantage and be the best in the business.

The Business Times has stated that while it would be tough for Singapore to make convincing advancement, the country has the opportunity to seek for improvement in the area of property registration.

Singapore, among other countries- 23 economies in East Asia and the Pacific to be exact- have made their administrative background more business friendly since 2005. Additional countries include San Antonio and other Texas sites. There are even several countries sending up their representatives to Singapore to learn its business system.

To cater to the high demand of business opportunities in Singapore, the country made sure that there are plenty of business hotels for clients. There are over 50 hotels ranging from Swissotel Merchant Court, The Ritz-Carlton Millenia, Pan Pacific Orchard Hotel to Amara Sanctuary Resort Sentosa. These are mainly four/five stars hotels located at the central business and shopping district and the airport.

In terms of ease of doing business and trading across borders, Singapore is also ranked first. The country’s export goods include machinery and equipment, pharmaceutical and refined petroleum products. Some of the most common import goods is comprised of mineral fuels, chemicals, foodstuffs and consumer goods. The country still stands among the top three when it comes to dealing with construction permits, protecting investors and resolving insolvency.

Numerous sites have reported that Singapore’s economy has been ranked as the most open in the world, the least corrupt, most pro-business, with low tax rates (14.2% of GDP) and one of the highest per-capita gross domestic products in the world. These reports include the World Economic Forum and the Transparency International 2012.

In addition, the country has several international trade agreements with other countries. As you’re reading this, you might recall the Agreement between New Zealand and Singapore on a Closer Economic Partnership (ANZSCEP) and the Agreement between Japan and the Republic of Singapore for a New-Age Economic Partnership (JSEPA). Both agreements concluded on 2000 and 2001 respectively.

To conclude, we can all agree that while the costs of living in Singapore is high, the economic viability of country has established it as an attractive business location. Because of the huge number of business opportunities in Singapore, the little red dot has proven it as an accomplished and diversified country.

Should I register a LLP or a PTE LTD?

Should I register a LLP or a PTE LTD? This is possibly one of the most common topics that comes up when applicants wishes to register a company in Singapore. The first thing you have to do is to understand the difference between these two business entities. Limited Liability Partnership or LLP for short, allows business owners to have the adaptability of conducting as a partnership while having a separated legal identity like PTE LTD. Speaking of Private Limited, it is a company limited by shares. Without further ado, let us now take a closer look at these two business entities shall we?

The two main differences between these two business vehicles are:  taxation and legal liability.

In the case of PTE LTD, the business owner gets taxed when they receive dividends or sell their shares at a profit. In a way, this means that the minute the income has been taxed at the allied level; dividends can be allocated to shareholders tax free. On the other hand, LLP is not a legal tax entity. This implies that each partner should pay for his or her specific amount of money that they had made through the partnership. Hence, there are no corporate tax benefits. If you’re planning to register a company in Singapore, this is one of the many points to take note of.

When it comes to legal liability, there is a something common between these two business vehicles. For one thing, both PTE LTD and LLP are limited. PTE LTD carries liability. When a Pte Ltd gets sued, it’s the company that’s getting charged – not the owners. In such a way, the owners are liable as the business belongs to them. Therefore, the owners can lose just as much. In a nut shell: sue or be sued in its own name. Similarly, LLP has a separate legal identity. Likewise, it can sue or be sued in its own name.

So here’s the tough question again: if I were to register a company in Singapore, should I choose PTE LTD or LLP? To put it simply, it heavily depends on your business structure. For instance, if you’re a lawyer and you’re planning to set up your own firm, it would highly recommend for you to pick LLP. This would even work if you’re intending to have one or more additional partners. In addition, if your partner decides to resign any changes in the LLP does not affect its liabilities. One of the several positive aspects of LLP is the ease of acquiescence.  It is much simpler than PTE LTD. But that’s not to say that PTE LTD is generally a rough choice. For one thing, PTE LTD holds a much more reliable visual appeal.

Most importantly, think carefully. Be sure of your goals: what you want to achieve, are you the only boss who’s operating this business etc…  There are many elements involved for a successful business. In conclusion, depending on the type of your business structure, you have to keep in mind these necessary factors to focus on your company. After all, all these points are the key factors for a profitable career. We all know that starting a business in Singapore is no easy task. It somehow feels that you have another mouth to feed at home. It is very time-consuming and takes a lot of effort. Just like what Walt Disney mentioned, “All our dreams can come true, if we have the courage to pursue them.” Everyone has to start from scratch. Once you’re ready, you will be prepared for a new adventure.