| A Singapore company is treated as a separate legal | | | | order to raise funds for business expansion. This is |
| entity from its shareholders which in essence it is like a | | | | sometimes more appealing to shareholders who want |
| real person: it can acquire or sell a property under its | | | | to avoid bank loans which are usually associated with |
| name, file a lawsuit using its name and can be named | | | | high interest rates. |
| in a case, and continue its existence regardless of who | | | | - Incentives for key employees |
| are the shareholders and board of directors. | | | | A public company can offer its key employees with |
| There are many reasons why a lot of both foreign | | | | shares or ownership which can serve as an incentive. |
| and local entrepreneurs wish to form a Singapore | | | | In this way, talented employees will become more |
| company. Apart from it being appealing and offering | | | | loyal to the company and may not consider seeking |
| scalability to grow your business particularly to those | | | | other employment. |
| who want to tap the Asia Pacific market, the real | | | | - Tax benefits and exemptions |
| value really in forming a Singapore corporation is that it | | | | A corporation which has remained "private" can enjoy |
| offers security for the stockholders and the company | | | | zero tax from its first $S100,000 chargeable income |
| itself. | | | | within the first three years of its incorporation. |
| These are the advantages of a Singapore corporation: | | | | Another 50 percent tax deduction is given to a |
| - Bankruptcy protection | | | | corporation for its $S200,000 income. |
| The shareholders (which are the legal term for | | | | Meanwhile, all corporations enjoy a single tier tax |
| corporation owners) enjoy a limited liability which | | | | system which means that once the taxes have been |
| means that their personal assets cannot be used or | | | | deducted from the corporate level, shareholders can |
| liquidated to pay off the company's debts, losses, and | | | | receive their dividends tax free. |
| liabilities to its creditors. | | | | - Efficient operational structure |
| - It exists as a separate legal entity from its | | | | Shareholders can appoint a board of directors who will |
| shareholders | | | | make crucial decisions for the company. Meanwhile, |
| As a separate legal entity, a corporation can acquire, | | | | the directors will then vote among themselves on who |
| sell, and own properties without using a principal. In | | | | will be the CEO, vice president, secretary, treasurer, |
| this way, no shareholders or directors can use | | | | etc. |
| company properties for their own personal purpose. | | | | - Continuous existence |
| - Easy to raise funds | | | | As a separate legal entity, a corporation can exist |
| A corporation is categorized into two: private (or | | | | regardless if there is a change in management or |
| non-stock) and public (stock). If it chooses to become | | | | several shareholders decide to leave the business. |
| public, it can sell some of its shares to the public in | | | | |