Legal advice: A necessity for companies in Singapore!
Different countries have different business policies. One has to understand these terms if they are planning to start a company in that country. For this, they require an expert at going through the legal terms all by yourselves without any guidance is a very tedious and hectic process.
In cities like Singapore it is important that you get your company registered under the Singapore Companies Act and further make a separate legal entity from its members. In Singapore it is considered best to have a limited liability companies as compared to the one’s with unlimited liability.
Limited Liability Company (LLC)
In order to understand the reason behind its high preferability, we firstly need to know all about Limited Liability Company (LLC). The main feature of a limited liability company is that the liabilities of the owners are limited to the assets in the company, and their personal assets are protected from business liabilities.
Having a deeper look at the Limited liability companies in Singapore, differentiate it into three types:
Private Limited Company
In a private limited company one can have varied advantages which are the reason which makes it more favourable than others. These companies have their own legal identity and is separate from its shareholders and its directors. It may get assets, go into debt, enter into contracts, and sue, or be sued. Further, you can raise capital for expansion or other purposes, by bringing in new shareholders or issuing more shares to existing shareholders and you may also benefit from the trustworthy image it commands compared to a sole proprietorship or a partnership firm.
Public Limited Company
Now when it comes to a public company, it reaches a certain growth level to become a well established medium-to-large enterprise. Here the shareholders might decide to take the company public. A public company's name in Singapore ends with Limited or Ltd.
These Public companies are subjected to considerably more strict rules and policy as they have the power to raise funds from the public.
As for a sole proprietorship, the business can only be owned by one person and the owner personally owns all assets and liabilities of the business. This is considered to be one of the most uncomplicated form of business entity and is very economical. Further, it is easier to start and terminate a sole proprietorship company. As you have the in complete control of all the business affairs, including the decision making so it is you who is benefited from all income generated by the business without sharing the profit with others.
But, for all these you need to know necessarily go through the legal process. This is the reason why it is important to hire a legal advice firm in Singapore.