Every business enterprise starts with a dream for success. Often, the first few steps you take can make or break the venture.
With MAL, we walk you through the process to forge a clear path for your business moving forward.
As a leading provider for company registration services, whether formation or administration services, we provide critical support to companies big and small alike.
One registers a company to protect personal assets, provide a brand name, enhance credibility, lower tax obligation, facilitate smoother growth and for other reasons too.
For many, registering a company can be troublesome and a major hassle. It requires many documents and procedures in order to be executed.
With our professional approach, registering your company will be a breeze.
Our company registration / formation services include:
Private Limited Companies (Pte Ltd)
The most popular business entity, it has a separate legal status from its shareholders and directors who have limited liabilities for the debts and losses of the company.
Limited Liability Partnerships (LLP)
A LLP provides owners with the flexibility of operating as a Partnership while having a separate legal identity like a PLC. It is popular with professional services such as lawyers, architects, accountants and management consultants.
Limited Partnerships (LP)
A LP is a partnership with a general partner, who manages the business and has unlimited personal liability for the debts and obligations, and a limited partner, who has limited liability but cannot participate in management.
Sole Proprietorships
It is the simplest form of business entity. With one owner who is the decisive authority and is responsible for all assets and liabilities belonging to the business.
Foreign Company’s Affiliates (branch office, subsidiary, representative office)
Affiliate is a company whose parent only possesses a minority stake in the ownership of the company. A subsidiary is a company whose parent is a majority shareholder.
Offshore Company Incorporation
Offshore company or International Business Corporation (IBC) mean company incorporate in a jurisdiction other than your own. IBC is usually set up in a tax haven, for instance, British Virgin Islands (BVI), Marshall Islands or Seychelles.
British Virgin Islands (BVI) is situated in the Atlantic Ocean and only 96 km east of Puerto Rico with a population of 25,000. It is the leading offshore jurisdiction with over 750,000 offshore companies incorporated since 1984. It is a tax-free corporation designed for all international business with no annual reporting or auditing requirements. Besides, it does not ask for taxes on personal income, as well as on capital gains or withholding tax. Last but not least, there are no exchange controls in BVI.
The Marshall Islands is part of the Micronesian islands situated in the Pacific Ocean. Marshall Islands International Business Company (IBC) is entitled to exempt from corporate, personal income tax, capital gains tax, withholding tax and stamp duty or exchanges controls with no annual reporting or auditing requirements. Additionally, there is no minimum paid-up capital in the Marshall Islands.
Seychelles located in the Indian Ocean Seychelles with a population of 80,000, and it is an attractive business and financial centre for international organisations and particularly popular in the maritime industry. Seychelles Offshore Companies enjoy no minimum capital and tax-free corporation designed with no annual reporting or auditing requirements. Moreover, it does not ask for taxes on personal income, as well as on capital gains or withholding tax. However, IBC must maintain a registered office in Seychelles.
Non-Profit Organisations
A non-profit organisation (NPO) is one which is not ambitious by profit but by producing benefits for others, commonly outside the membership of the NPO. NPOs are self-governed by a board of trustees or ‘managing committee’ or governing council, including persons who usually help in a fiduciary capacity. It is not compulsory to register as NPO in Singapore. It will be hard to raise funds from non-members and unable to enjoy tax exemptions on the funds raised.
A registered NPO brings about a sense of clarity and formality. This status becomes a criterion which most donors use to assess requests for funds. Once it is registered, it is publicly accountable and this creates a sense of trust.
Company Limited by Guarantee (CLG)
Company limited by guarantee is one which is the most desirable type of company structure and has members rather than shareholders. Members can benefit from joining a separate legal entity with limited liability. Other than that, companies have no share capital as members usually pay a predetermined amount to the liabilities of the company which becomes due in the event of the company being wound up.
Last but not least, any surplus funds they collected from members are exempted from income tax. If more than 50% of gross revenue is collected from members, this amount is not tax-deductible for members. Companies must apply for Charity status after its registration to enjoy full tax exemption in Singapore.
Society
NPO registered as a society is less formal than a Public Company Limited by Guarantee. It is fast, easy and inexpensive to start-up. Registering as a society is suitable for a small group that function by volunteers. It could be a club, company, partnership or association of 10 or more persons, regardless of the business nature, and not already registered under any other law.
In taxation, society enjoys the same treatment as Public Company Limited by Guarantee.
Any surplus funds they collected from members are exempted from income tax. If more than 50% of gross revenue is collected from members, this amount is not tax-deductible for members. Companies must apply for Charity status after its registration to enjoy full tax exemption in Singapore.
However, members are exposed to societies’ liabilities as members are not a separate legal entity with the societies.
Charitable Trust
A charitable trust is an entity that is formed by an individual and managed by a group of trustees. A charity is a matter of status instead of an organisational structure. The trustees follow a deed that defines their role within the trust. The deed sets out the outline within which the trustees must function. All registered charities in Singapore is automatically tax exemption. The charitable trust is suitable for running of a scholarship or bursary. It is not required to have audited financial statements unless the trust deed required to do so. In a broader sense, charitable trust enjoys limited public disclosure. Singapore Charities Act is responsible for governing all charities and all charities must be registered with the Commissioner of Charities in three months of its registration.
However, it could be quite costly to set up a charitable trust in Singapore. Charity trust is not a separate legal entity as well. There is no accountability to a broader membership base as trustees are the controller of everything.
An approved Institutions of a Public Character (IPC) is an NPO with charity status. IPCs are permitted by the Commissioner of Charities to enjoy tax-deductible on donations which are made to these organisations. IPC status is suitable for those organisations who are nor operated or conducted for profit. For instance, hospital, public or benevolent institution, public authority or society, university, educational institution, charitable institution, etc. Donors are eligible for tax deduction only when the donations made to a charity that is an approved IPC.
If you are interested in setting up a non-profit entity in Singapore, you should seek the services of a professional services firm that can assist you with the registration as well as on-going statutory compliance matters of the entity. Contact MAL today!
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