In the past decade, many reputable business organizations, financial magazines and internet portals have included Singapore on their lists for one of the most successful countries in the world. There is no doubt that Singapore has great business potential and their authorities are constantly working on improving the business conditions for both domestic and foreign investors and business owners. Today Singapore is an international player in the field of global economy.
There are many reasons why Singapore is developing so quickly and why their economy has resisted the changes brought by the global financial crisis. For example, Singapore has a great location – it has access to the sea and it is located in a region that is showing amazing progress in the last 20 years. Singapore also has a well-developed infrastructure and both local and foreign companies consider Singapore to be one of the easiest spots to access and transport goods. Singapore is also one of the largest seaports in the world. This city-state has a highly developed trade-oriented market economy. Their model is used by many other Asian countries that are looking for a way to boost their own economies.
If we take a look at all these things we should not be surprised when we see how many people in Singapore, but also out of Singapore want to open their own companies there. Establishing a company in Singapore is really easy. In order to do that you should first choose the type of company you want to establish. There are basically five different options – Sole Proprietorship, Partnership, Limited Partnership, Limited Liability Partnership and a new company.
The first option, sole proprietorship is very popular. This is considered to be the basic type of business structure where there is only one owner. This owner has control and decides about everything that is going on in the company – management, planning, expenses, profits, assets etc. It is good to point out that this is not a legal entity and cannot be part of any lawsuits. The income that comes as a result of the business activities is considered to be personal income and owners have to pay personal income tax.
The second option is partnership. This form of business structure can be owned by more than one person or even other companies. The minimum number of owners is 2 and the maximum is 20. This is another structure that is not a legal entity. The profit subjected to taxation is shared by the partners.
Limited partnership is a special form of partnership in which there are at least two partners where one of them is considered to be a general partner while the other is a limited partner. The general partner had unlimited personal liability. Limited liability partnership is a term used for companies where partners have certain personal liability which is defined with the statute of the company.
A completely new company can also be established and the owners in this case are called shareholders. The head of the company must be a Singaporean citizen or a person that has permanent residence in Singapore.