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Your chosen business structure will dictate the path of your proposed company in Singapore—from its daily operations, to tax commitments, and even your personal assets that will be put at risk. As a business owner, you have two options when it comes to registering your company in Singapore: take its shareholding in your personal name or in the name your existing company’s name instead. This instance deals with:
We will explain you what to do in this situation and allow you to choose the business structure that has the perfect balance of benefits and lawful protection.
If an existing company takes the shareholding of the proposed company, then the parent company’s compliance requirements would apply in this case as well. This means that your existing company will become the owner of your proposed company. The proposed company’s results, which are the profit and loss account, will then need to be consolidated and reported to the parent company. Undoubtedly, these would add extra work to your accountant. The structure in this case appears as indicated below.
An exempt private limited company only has less than 20 shareholders, who are all individuals, and does not involve a single corporate entity. If a corporate entity is taking the shareholding of a company, then it will become a private limited company.
If you are flexible enough and have the choice, then you must prioritize registering an exempt private limited company as this business structure remains separated from your already existing company in your home country or from your other company. Moreover, its registration process only asks for minimal compliance requirements. Obviously if there is no option, then you will go for a corporate shareholding.
To conclude, taking up shareholding in an individual’s name is the most convenient and beneficial way of registering a company in Singapore.
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