Congratulations for taking the important decision in setting up a business. To legalize the set up of your business, you will have to incorporate your business through ACRA. Incorporating a company not only sets up a different entity for your business operations, but also can help to limit your personal liability for business obligations.
Incorporation of business could mean setting up a limited liability company, limited partnership or establishing a private limited company. For new business owners, there might be confusion on matters relating to how, when and why to incorporate business, so we will like to go through some key points that you as a business owner will need to understand before incorporating a business:
- The name of business shall be unique and relatable to the nature of business. Before naming the business, name availability must be checked. For example, the name of business shall not resemble to any name which is subject to trademark or copyright.
- The location of business also plays a critical role as it determines where you shall build business relations and carry out your regular business operations.
- The managing partner, directors and shareholders need to agree on the ownership and management structure. This information should be well documented in the articles of association, which is an important document for your company.
- The objective of incorporating a business should be clear from the start. Do you want to incorporate for tax benefits, to create a separate legal entity or to scale up your business through a different organizational structure?
- Permits and licenses might be required, depending on the nature of business you are in. In an industry which is highly regulated, it might be difficult to obtain permits and license to run your business. For example, if you are doing a business related to food and beverage, liquor, education, you might need to apply for permits from various government agencies.
- The right form of business structure needs to be well thought of for your business. This could include limited liability partnerships, limited liability companies or other forms of companies. Different laws, filing requirements and taxes apply for different business structures, so this should be carefully considered before you incorporate your company.
- Getting an external agent like Number Vision will help you greatly in the incorporation process. It is easy to check reviews and compare prices offered by different companies, but we are sure that we will be able to offer you the best services at the most competitive rates. Feel free to chat with us if you have specific enquiries on incorporation!