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Form a Singapore Company Incorporation and Its Advantages

In an effort to draw international corporations and encourage native entrepreneurs, the Singapore government has passed a couple of company regulations that provide tax exemptions and bankruptcy coverage for corporations.

The following is a list of advantages of a Singapore Company Incorporation:

The business is treated as a separate legal entity from its shareholders

With this arrangement, a corporation can enter a contract, acquire a property, and purchase supplies under its name.  And because the business is treated like a real person, it is usually named in a lawsuit instead the company officials or shareholders (who are too many to mention).

Shareholders enjoy limited liability

Limited liability means that the personal assets (such as houses, cars, and properties) of each shareholder are protected from debts, losses, and liabilities related to business.  This means that in case of bankruptcy, only the business assets can be liquidated and not the personal assets.

Continuous existence

The corporation will continue its existence even if one or more shareholders die or some board of directors and officials leave the company.  This is not the case for the sole proprietorship in which it will cease its existence once the owner dies.

Capital incentives

Corporations that have opened their shares to the public can provide the key employees with incentives and bonuses through ownership.  With this arrangement, the employees will most likely stay in the company and will be encouraged to maximize their productivity.  

Easy to raise funds

Corporations can raise more funds for expansion without having to loan from the banks that is usually associated with high interest rates.  By making their ownership open to the public, they can raise capital which can be used for business expansion.
Tax benefits

For corporations which remain “private”, they can enjoy zero tax on the first $ S100,000 chargeable income within the first three years of incorporation. Another 50 percent tax exemption is awarded on the next $ S200,000 income.

Efficient operational structure

Shareholders have the right to appoint a board of directors whom they think have the capability and knowledge to run a business.  After the voting process, the directors will then select among themselves on who will be the secretary, CEO, vice president, treasurer, etc.

 

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Singapore Company Incorporation And Current World Economic Conditions

Current world economic conditions can affect all businesses, eventually. For some time now, there has been a major slump in many economies of large countries. However, there may be reason to be optimistic about new trends. This can make a Singapore company incorporation an even more attractive business venture.

As the world economy continues to grow, it is very good news for many people. Although it may be slow, there are many good signs of world wide of economic recovery. However, things are going very well in Singapore, already.

Hot Economy
Time Magazine reports that Singapore’s economy is strong and impressive. It recently revealed that Singapore’s economy grew by a little more than eighteen percent in the first six months of 2010.

This rate was better than Brazil, India, and China. This growth should easily continue for the last half of 2010 also. Global investing and securities firm Goldman Sachs, has changed its forecast for the GDP of Singapore, this year.

It was previously forecast for 12 percent. However they have changed the forecast to 16.5 percent. GDP or Gross Domestic Product is a very good way to measure the economy of a country. It is basically the sum total of all goods and services that are produced in a specified time period. With growth like this, incorporating a company in Singapore can be a good move for the future.

The Impact of Casinos
Two very large casinos have opened up in Singapore in 2010. There are also hotels, restaurants and shopping centers. There is also the addition of Universal Studios. By June of 2010 there have already three million visitors to the casinos.

Labor Market
The labor market is doing very well in Singapore. It is a near full employment. It is estimated that as many as 100,000 new foreign workers will join the ranks. This is the sign of a strong economy and makes Singapore a good place to incorporate a company.

Large Scale Changes
In 2009 the economy in Singapore lost some. Although not huge, it was a negative growth of 2.1 percent. The recent economic upturn reflects a very large increase in economic conditions throughout the country.

Future Forecasts
There are some predictions that the Singapore economy may slow some in 2011. This may be due to trade with China, the United States, and Europe. If their recovery remains slow, it might eventually affect Singapore.

However, there is also good reason to believe that this may not happen. Singapore is becoming very popular for private banking. As banking business drops in places like Switzerland, it increases in Singapore. Singapore also boasts the largest population of millionaires in the world at 11.4 percent. Although economic growth rate is expected to fall off some, it is still expected to grow by as much as five percent or more. This makes Singapore, one of the best places for incorporation of a company.

Summary
Current world economic conditions are improving. Conditions in Singapore are very well, at this time. Some of the expansion has been fueled by new Casinos. The economy is expected to stay strong with assets like private banking. If you plan to incorporate a company soon, consider Singapore.

SingaporeStartup.com is a general information portal designed to assist people with learning the basic of starting and doing business in Singapore. If you want to know more about Singapore corporation setup, Singapore branch office registration, Singapore subsidiary formation, Singapore Shelf company, Singapore taxation and Singapore company registration, visit http://www.singaporestartup.com

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