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10 important Benefits of incorporating your new company in Singapore

Monday, June 18, 2018 5:45
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The business industry has drastically changed with evolution in the modern world. Business owners have been forced to adapt to the current trend in the industry. They are all joining the bandwagon that has been brought by civilization. It is now becoming a prerequisite of success for any entrepreneur to maneuver around in the modern world. Incorporating in Singapore is a good decision for most businesses. If you are just starting your business, below are the benefits that come with incorporating, and why you need to consider this decision.

Protects your personal assets

With passion, starting your own business can be an exciting experience. You will be your own boss, which is everyone’s dream, and almost everything will be revolving around you; from decision making, down to record keeping. However, with all these responsibilities on your desk comes the reality that your business may not pay off, or an accident may happen and you end up losing your business, stock, assets, and money. Entrepreneurs normally take big risks by using their assets to acquire loans to start a business. Such decisions could be risky especially when your business falls on hard times. You are likely to lose your property because of failing to pay back the loan. However, by incorporating, your personal property is off-limits from any collecting agencies in case you are declared bankrupt.

Tax benefits

Tax laws are complex and no business owner would like to get in the wrong books of the respective authorities since the penalties that come with them are massive and could sink your business. After investing a lot in your business, you will not want to see it crumble in a fraction of a second. This is what happens with most tax authorities because they tend to be ruthless whenever anyone breaks the law. By deciding to incorporate your business, you will be able to enjoy some of the tax deductions that are available for incorporated businesses. By incorporating, you will also enjoy the following: you will be able to claim some of your business investments, you will have the ability to deduct business losses, and you can also claim most of your daily expenses required to operate.

Easy access to capital

By incorporating your company, you will make it easier for your business to raise capital. This is because a corporation can raise capital by issuing shares of stock. With the ease of getting capital, your business will grow and develop with ease. If you are considering getting a bank loan, then you should consider incorporating your business. This is because banks give loans easily to corporations instead of unincorporated business ventures. Corporations also tend to have access to more alternative sources of capital that they can use to pay off their business debts. With incorporation comes massive benefits. For example, when opening a bank account, you can get affordable pay-back plans lined up for you that will help grow your business without so much pressure of deadlines.

Ensure continuity of your business

After you are gone

Becoming your own boss is everyone’s passion and dream.  However, no one starts a business with the intention of closing it after a period of time. All entrepreneurs want their businesses to continue operating long after they are gone. Even after you die, the business will be left to your family based on your will. When you decide to incorporate your business, your desire for the business going on without your presence will still happen. Even if you are still alive, there will be segregation of duties to ensure there is no interference with the business.

When you incorporate, you will also protect your family from any harsh and violent creditors who may auction your personal properties to recover their debts. When you die without a trust protecting your business, a court will estimate your business’ worth to repay the loans and ensure all deductions have been cleared, and your family will get whatever remains.

Brand protection

With branding, your business is protected. Branding is how you do your activities, how you operate, and the types of products your business offers. However, building a stable brand is quite complex and it involves more than just a logo or a marketing strategy. It makes your business unique and sets you apart from your competitors. By deciding to incorporate your company, you will protect the overall image of your business. You will be able to protect your trademark, any designs that distinguish your business from the rest, your business colors, brand recognition, and your business name. All these will be protected. Whoever uses them can be sued and made to pay for the damages. Incorporation will ensure your business stands out and it will protect your brand.

Easy to sell

Unavoidable circumstances may force business owners to sell their businesses. Nevertheless, nobody wishes for such occurrences. If you decide to sell an incorporated business, you will not have a hard time convincing the buyer. This is because they already know the benefits that come with incorporated companies. An investor will prefer a registered company than a sole proprietor since it can be managed easily without any difficulties. Company incorporation is a sign of stability, and will be to your advantage when selling. Every investor will go for a company that has stability before they decide to invest in them. You will always want to see value for your money. It is best to prepare for the future by incorporating your company now.

Ease of entry

According to the Singapore Companies Act, for a company to incorporate in Singapore, it needs at least one local director, and a local company secretary who is over 18 years old and has no prior bankruptcy record. There is also the speed of incorporation which lasts from 24 hours to 3 weeks for companies that have foreign shareholding and pending on any proposed company name availability, or reference checks on all foreign directors. Singapore companies are also eligible for a lot of government grants available to help in IT consultancy, systems improvement, and branding.

Ensures proper accountability

For any business to flourish, there should be proper record keeping. With an incorporated company, you are not only answerable to yourself, but also to other interested parties like the customers, employees, banks, and the government who may want details regarding your business and operations. The only way to ensure that you give accurate information is by having your record system working well for proper accountability. To have all these reports about your operations and taxes, you will need to hire professionals who are able to give a clear and accurate picture of your business. This will come in handy for you as a business owner because such information will aid in decision making and gauging the overall health of your business.

As a business owner, you will be in a better position to tell if you are making profits or losses, and determine your expenses flowchart. These records can help you obtain a loan from lenders. All these will work out if you decide to incorporate your business. The requirements that come with accountability will make your business blossom.

Privacy and reputation is enhanced

The level of privacy that comes with incorporating your business is superb. You are in a position to either keep your identity hidden, or you can decide to disclose your identity. With incorporation, you are able to run your business affairs privately without involving your name. Even the bank accounts can be operated separately without putting your name in the limelight. Such confidentiality is highly encouraged for any business to prosper in the modern competitive world. The cards of decision making will be placed on your hands as the owner of the business; however, this privilege may be taken away based on the laws of the country. Whether you decide to disclose your identity or not, you will be able to enjoy the good reputation that comes with incorporation. You will gain a sense of higher worth in the eyes of the community in the are of your operation. With your brand set, you will easily ride over your competitors and gain more customers to guarantee maximum profits.

Easy to transfer ownership

Incorporating your business will provide an excellent means for transferring ownership. This cannot be compared to a sole proprietor where all your personal assets are linked to your business. A transfer cannot occur until the lines of connections to your personal assets are defined and cut. This scenario does not apply to an incorporated company. In fact, it will even be easier to transfer to a third party or next of kin whenever you feel like. You can transfer assets and funds without a big hustle. It is time you consider having your company incorporated.

As listed above, there are so many reasons why you should consider joining the current trend of operation and incorporate your company to guarantee the sustainability of your business. By making the decision to incorporate, you will leave your business to professionals as you tackle other important engagements. Whether with short-term or long-term objectives, your business will benefit significantly. With this golden decision, you will be able to get along well with tax authorities especially the government, and also gain trust from investors. The future looks brighter for incorporated companies. Make sure that you hire the right company incorporation service firm and get the best start for your new business in Singapore.

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