- February 17, 2023
- Posted by: Vivek Sharma
- Category: Knowledge Base
In Singapore, one of the most popular forms of business entity is the Limited Liability Company (LLC), also known as a Private Limited Company. An LLC is a company incorporated under the Companies Act and offers limited liability protection to its shareholders, meaning their assets are protected from business liabilities.
Advantages
There are several advantages to setting up an LLC in Singapore.
Firstly, it offers a clear separation between the company and its owners. This characteristic means that the company’s assets and liabilities are distinct from the personal assets of its shareholders.
Secondly, an LLC provides a stable and enduring structure with the potential for perpetual succession, making it an attractive investment option for many investors.
How to set up an LLC in Singapore?
The first step is registering the company with the Accounting and Corporate Regulatory Authority (ACRA). This action involves selecting a unique name for the company and submitting the necessary documentation, such as the company’s memorandum and articles of association and details of its shareholders and directors.
In Singapore, an LLC can have a minimum of one and a maximum of fifty shareholders. The shareholders may be individuals or companies, and they are only liable for the amount of their investment in the company. The company’s directors are responsible for managing its affairs and ensuring compliance with local laws and regulations.
Why set up an LLC in Singapore?
One of the main advantages of setting up an LLC in Singapore is its tax system. Singapore has a low corporate tax rate, with a progressive tax system that allows for tax exemptions and deductions. In addition, Singapore has a network of more than 80 Double Taxation Agreements (DTAs) with other countries, which makes it easier for companies to do business internationally.
LLC Regulations
LLCs in Singapore must hold an Annual General Meeting (AGM) of shareholders, at which the company’s financial statements are presented and discussed. In addition, the company must file an annual return with ACRA, which includes details of the company’s directors, shareholders, and financial statements.
Conclusion
In conclusion, an LLC in Singapore is a popular business entity that offers limited liability protection to its shareholders, a stable and enduring structure, and a favourable tax system. It is relatively easy to set up and manage, making it an attractive option for local and foreign investors. However, it is essential to comply with local laws and regulations, including those related to corporate governance and reporting, to ensure the business’s long-term success. This compliance is where Inctro’s team of experts can efficiently assist you.
We can help you open a company in Singapore from anywhere in the world, and that too in a few simple steps. Our dedicated account managers take over every aspect of your company’s complaint from day zero so that you may focus on your core. Please connect with us and experience the Inctro advantage.