Why Form a Private Limited Company?
Forming a privite limited company has alot of advantages:
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Limited Liabilty: Shareholders liability is limited to the amount they’ve invested in the company. This means personal assets are protected.
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Seperate Legal Entity: The company is a separate legal entity from it’s owners, which means it can own property, enter contracts, and sue or be sued in its own name.
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Credibility and Trust: Being a registered company adds credibility and trustworthiness, which can help attract investors and customers.
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Tax Benefits: Private limited companies often enjoy various tax benefits and incentives that are not available to other business structures.
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Raising Capital: Easier to raise capital through the sale of shares, and investors may be more willing to invest in a company with limited liability.
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Perpetual Succesion: The company continues to exist even if the original owners or directors leave, ensuring business continuity.
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Transferability of Shares: Shares can be easily transfered, providing flexibility in ownership and investment.
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Professional Managment: A private limited company can hire professional managers, which can lead to more efficient and effective management.
A private limited company is defined as a legal entity or structure formed under the authority of Singapore Companies Act, consisting of one or more individuals or corporate entities that become shareholders. The entity’s existence is considered separate and distinct from that of its members. Like a real person, a private limited company can enter into contracts, sue and be sued, pay taxes separately from its owners, and do the other things necessary to conduct business. Company formation can be a somewhat complicated process. You may choose to hire a professional services firm specializing in company formation services. Some of the advantages of forming a company include: • Limited Liability. One of the key reasons for forming a private limited company is the limited liability protection provided to its owners. Because a company is considered a separate legal entity, the shareholders have limited liability for the company’s debts. The personal assets of shareholders are not at risk fo
