5 Reasons Why You Should Incorporate Your Business
Last Updated on June 15, 2023
As your venture flourishes with dedicated time, capital, and effort, the question arises: "Should I proceed with company incorporation in Singapore?" While incorporating a company does come with added complexity and obligations compared to a sole proprietorship, it also brings numerous advantages. Discover the benefits of Singapore incorporation and unlock new possibilities for your thriving business.
Incorporation is when a business owner registers their company to form a corporate entity that separates the business’ assets from its owners and investors. Corporate entities are often identified by using the term “Inc” or “Limited (Ltd.)” in their names. Businesses in Singapore may register their company with ACRA.
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Incorporating your business means that your Board of Directors can continue business activities in the event of one’s death or withdrawal. They can hold a meeting to appoint a successor immediately. This line of continuity cannot be said for sole proprietorship businesses.
One of the benefits of incorporating one’s business is getting tax incentives. While it is true that corporate tax regulations vary, most offer better deals for corporations to attract businesses and provide employment opportunities.
In Texas, for instance, there is no income or corporate tax applicable. While in Singapore, sole proprietors are taxed at 22% for personal income compared to the corporate tax rate, which stands at 17%.
Would you be willing to invest in a new business with no legal standing? Most likely, you would be wary and have some hesitation. By incorporating your business and becoming a legal entity, investors and customers are more likely to trust you. It can also increase your brand awareness and make it easier to get funding from bank loans, angel investors, or venture capitalists.
The decision-making process is centralized when you incorporate your business and are no longer a one-man operation. Usually, it takes a vote of the Board of Directors to make big decisions. This minimises the risk of one party making a mistake due to bad influence or advice. Voting ensures a democratic consensus of what is best for the company.
As you can see, incorporating a business gives you many advantages compared to having a sole proprietorship. While you may think that incorporating a business is complex and time-consuming, it is not. Nowadays, it can be done online and only takes a couple of minutes of your time.
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Embarking on the journey of company incorporation in Singapore can be overwhelming, but you don't have to navigate it alone. Let Lanturn be your trusted partner in the incorporation of your company. With our extensive experience and expert guidance, we will ensure a smooth and successful process. Take the first step towards your business goals and let us handle the intricacies of Singapore incorporation. Trust Lanturn to support you every step of the way.
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