How to choose right structure of business
A place like Singapore offers innumerable opportunities to the foreigners who want to initiate or set up a new business structure. When there is flexibility in setting up the business with the set of new ideas and originality then it is important to work wisely so that the people who are associated with it should get maximum benefit in it. Thus, choosing the right business structure in Singapore is the most important task to take your business to new heights. Establishing a new business in a new country needs proper planning and its execution. The process of opening a new business should be detailed, exclusive and strategic to expect good output from it.
Choosing the exact structure for your business is significant to playing a long game. In fact, a man invested a big amount of his capital that it is hazardous for him to bear big loss. Therefore, it is better to search in detail to choose the right business structure depending upon the requirements of your business. The factors which help the businessmen to determine the right business structure are:
- Amount of capital you want to invest
- Number of partners will be involved to give their contribution in it
- Detailed assessment of liabilities and assets of your company
- How much risk can be involved in such a business?
- Evaluation of advantages and disadvantages of the different business options
- How to take the business entity to the next level of growth graph
In Singapore, the opportunity to set up a new business is not an uphill task because the authorities are assigned to give entrepreneur pass guides the applicants for further proceedings to initiate their task. ACRA helps them to register their company if they have detailed plans in their mind to come up with a new form and shape to commence their business plans. There are four types of business structure which can be chosen by the aspirant according to his demand:
- Sole proprietorship or partnership: Either the business can be handled by the owner of the business or there are two or more than two partners to look after the business. It is simple to get the registration done of such a structure. Moreover, it is less costly to administer in comparison to other companies where a hefty amount is required.
- Limited Partnership: Minimum two partners are required to get the approval for registration under the heading Limited Partnership. It has one general partner and one limited partner. The general partner is responsible for the actions of the limited partner.
- Limited Liability Partnership: LLP functions as a corporate body and performs legal functions in the company. The existence of LLP is perpetual and does not affect its functionality even if there is any change in their partners. LLP provides the owners the flexibility of operating as a partnership though it has a separate legal identity.
- Company: Under this, the name of the company is chosen and the documentation is done under the supervision of BizFile, ACRA’s electronic filing and information retrieval system. After its registration, one can go for the company incorporation.
The foreigners can play the major role in one of these structures provided that there should be foreign company and representative office to look into the matter and provide a gateway to these foreign companies to enter in Singapore to expand their business at global level.