Are you a sole proprietor wondering if you should register your small business? Hopefully, this article outlines some of the key benefits you can expect from small business registration.
Registration may be the right step for you if you plan to grow your business in the future. Registration will make it easier for you to obtain additional financing in the form of equity investments or loans. Also, if your business faces financial difficulties in the future, registration will provide you with limited protection against business debts and obligations. We will discuss these benefits in more detail below.
First, let’s take a look at why value Singapore company incorporation makes it easier to obtain additional funds to grow your business.
Registration provides your company with a formal share structure, making the issuance and price of shares much simpler, making it easy to raise funds through additional capital expenditures.
Registration also increases your company’s credibility with financial institutions and therefore makes it easier to obtain additional funds.
Now let’s look at the topic of personal liability protection.
When you register your small business, your status changes and you become a completely separate legal entity. As a result, you get personal liability protection against business debts. Once registered as a shareholder, you will only be personally liable for the debts of the company up to the amount of capital that you have invested in the newly formed company.
In other words, the creditors of the company will only be entitled to payment of the amounts due from the assets of the registered company and not from the personal assets of the shareholders and directors.
Protecting personal liability is by far one of the most compelling benefits of registering a small business. This effectively eliminates the risk to your personal assets associated with owning a small business.
Aside from the aforementioned benefits, registering your small business can also have tax benefits.
Registering a company in Singapore can be an easy task for a foreigner; you just need to know the requirements that you need to pay attention to and read them to get a clearer picture of the whole process. In this article, we will give you an outline of the details required to open a business in Singapore.
Before you decide to safely begin the small business registration process, you should always seek the professional advice of a qualified financial expert, as individual circumstances vary.