When considering a Singapore business venture, you will have the option of forming a Singapore LLC. This will afford many important benefits to business owners. You may also have several questions about LLC setups and operations. Here are some to consider.
1. What exactly is an LLC?
LLC stands for Limited Liability Company. A limited liability company is a separate entity from the original company on foreign soil. The foreign company is not responsible for the liabilities of the LLC in Singapore and vice versa.
2. Is an LLC in Singapore the best option to choose?
This will depend on the circumstances. There are several options for starting businesses in Singapore. Most people will choose the limited liability option, but there are others to consider.
If you are a professional like a doctor or lawyer, you may wish to set up a limited liability partnership. In this way, you can have some protection from a normal business partnership.
Some companies may benefit from opening a branch office, also. This is mostly for companies that are testing the market and unsure where to expand.
3. Do I have to hire a professional service to register my Singapore LLC?
You must hire a professional service to register, but there are exceptions. For example, your company directors, shareholders, and secretary can be Singapore citizens or they must hold a valid work pass. In that case, you may self register.
4. What is the first step in registering a Singapore LLC?
The first thing to do, is submit a company name for approval. If you hire a service, this will be done on your behalf. The process is simple and may take less than an hour, as everything is computerized. It is best to have a unique name. If it is similar to other company names, this may drag out the process and it may be denied.
5. How long does is usually take to approve the Singapore LLC registration, after the name is approved?
If all the documents are properly filled out and signed, it may only take a matter of hours. However, in some case, it can be delayed. For example, more information may be needed about company personnel.
6. Will I need to obtain a business license before I begin?
Most new businesses may not require a license. However, there are some that will need one. They include financial services, travel agencies, restaurants, and educational facilities.
7. Will my new company be subject to GST or goods and services tax?
Your company will not have to pay GST, but may have to collect them. This type of tax is charged to the consumer on purchases of goods and services. However, unless your company does more than S$ 1,000,000 each year, you will not be required to collect GST.
A Singapore LLC is a limited liability company. This is the most popular option for starting a business. The LLC in Singapore is a separate business entity from the parent company and is not responsible for the parent company liabilities. Most companies are registered by a professional service, but it is not mandatory (if all of your company officers are Singapore citizens or hold work passes). The first step is to register a name, and then register the company. This is an easy and quick process. Only certain businesses require a business license and you do not have to register for GST if your company turnover is under S$ 1,000,000 per year.