When a company is incorporated, it becomes an independent entity from its owners. The assets of the company and those of its investors and owners become independent. This separation of assets and cash flows between the owners and the company forms a stream of resources with limited liability hence the name “limited” in all incorporated companies. Incorporation commences with writing “the articles of incorporation,” which triggers a procedure to enumerate all shareholders. You can choose to do incorporation of your company the conventional way or contact a company incorporation service. Most of such services in Singapore are online, and with the company incorporation service, the process does not take long.
Why Incorporate Your Company?
The principal advantage of incorporating a company is to protect owner and shareholder assets. A corporate company becomes a legal entity to incur its liabilities and settle debts. The shareholders can conduct business without risking their assets or standing up for court hearings in compliance suits. Secondly, incorporated companies tend to have a more appealing view of clients and associates. They appear credible, permanent, and stable, which conveys better commitment. Also, incorporated companies have broader capital access. Banks and other lenders tend to be more lenient to incorporations when handling loans. Such companies can also gain capital by issuing stock shares. Also, corporations tend to enjoy tax benefits since the tax rates depend on their profits and not assets. Finally, incorporating a company provides anonymity among shareholders, and the company can achieve perpetual existence.
Changes Accompanying Incorporation.
The first step after incorporation is opening a new bank account into which each shareholder deposits their investment. Next, the company must appoint a secretary within six months. The secretary is responsible for checking compliance regulations. Also, an incorporated company must acquire a seal to mark unique signs …