Details on types of business in Singapore: Singapore is one of the most lucrative places for doing business and also the country got a good business environment. The city of Singapore is regarded as one of the cleanest environment without any traffic congestion and the country got world famous good port facility and also airport facility. The Changi airport in Singapore consistently winning any prize due to its quality maintains issue. The living standard is very high and there are different types of business available in Singapore. One of the main attractions of Singapore is the recreation business. The country got many different cafes, shopping malls, museums, cinemas, exhibitions, and festival centers. As Singapore has every possible way to import products from different origins thus there are the wide range of choices of products and price become very competitive.
There are some major advantages of doing business in Singapore and one of the benefits is the well growing economic environment, good political stability and lots of existing foreign companies that run a business in Singapore. Singapore got a low tax rate and the strategic location of the country provides additional support for the companies operating inside Singapore. Other than that, opening a business in Singapore is very easy and according to economy ranking, Singapore ranked first place in terms of ease of doing business. However, there are some disadvantages to doing business in Singapore. Among them, there is a barrier that may forbid some company from a specific country to start a business in Singapore. This may also generate a problem for both in company level or in personal aspects such as employees from some specific country may not allow working in Singapore and thus harming the business development in Singapore. Other than that the living standard of Singapore is very high and the country is regarded as one of the most expensive countries in the world.
Major types of business incorporate in Singapore
There are some major types of business in Singapore and Limited Liability Company is one of them. Limited Liability Company is incorporated by registering the company with ACRA Singapore and they may act as a separate legal entity and differentiate the owner from the entity. The limited liability company may join in contract or own asset and also sue other company and be sued on its own name. This type of company may take share and the shareholders of the company may be individuals or another company.
There are many subsections among Limited Liability Company and the private limited company is one of them. The private limited company is one of the most preferred types among the types of business in Singapore. This type of company cannot distribute its share to the general public and thus all the shares need to be in a private state. The shareholder of a private limited company cannot exceed more than 50 personnel and the company should carry suffix as private Limited or PTE Company. Types of business in Singapore are very diverse and exempt private limited company (EPC) is one of them. This type of company is exempted from conducting an annual audit and to remain as EPC, the company should not get more than 20 shareholders and among the shareholders, there should not be any corporate shareholders. Additionally, the annual revenue of the company cannot be more than $5 million.
Other than a private limited company, there is also a public limited company among the types of business in Singapore. There are two main categories among the public company and one is a public company limited by share and another is a public company limited by guarantee. Any LLC that has shared more than 50 personnel than the company may be regarded as the public limited company. These types of a company should carry suffixes such as Limited or LTD and also allowed to enlist their names in stock exchange services. It is mandatory for LLC is to submit a prospectus to the Monetary Authority of Singapore (MAS) before the company starts raising money from the general public. On another hand, the public company limited by guarantee is incorporated for non-profit purpose and all the company raising charity may fall in this category. Please note that this type of company cannot distribute any share and members of the company do not need to pay any capital. The structure of the company is non-commercial and non-trading and they include different trade associations, different bodies of the charitable organization, societies of professionals, different religious bodies, incorporated clubs and other not profit undertakings.
The final type of company may include a sole proprietorship company and this is the second most popular company in Singapore. This is mandatory for the company to make renewal every year with ACRA. This company does not have any separate legal entity and the risk of the owner is unlimited. So this type of business is only suitable for less risky business, as there is a big chance for the owner to fall under huge debts. Aside from that, there are General Partnership (GP), Limited Partnership (LP) business are available as well among the types of the business in Singapore.