While forming a company, the most pertinent issue that you need to decide is which legal form to choose for your company as it can have crucial implications on your personal risk in the business as well as the prospects of your business for giving back financial returns.
You would like to consider vital issues like ease of formation, asset liability, business asset appreciation, and tax obligations, before you decide on your business form. Though you will certainly seek legal advice from your lawyer, it is advisable that you get to know the basics of all the legal forms before you meet your lawyer.
In Singapore, businesses mainly operate as companies, sole proprietorships and partnerships.
A company has to be registered under the Singapore Companies Act and a separate legal entity from its members. Though you can incorporate a company with unlimited liability, almost all companies in Singapore are incorporated as limited liability companies due to its advantages over other forms of company formation.
Limited Liability Company (LLC)
The limited-liability company (LLC) is a relatively new form of business organization. The chief feature of a limited liability company is that the liabilities of the owners are limited to the assets in the company, and their personal assets are protected from business liabilities.
Limited liability companies in Singapore can be of the following types:
Private Limited Company
The technical term for a private limited liability company in Singapore is Private Company Limited by Shares. A private limited company’s name in Singapore normally ends with Private Limited, or Pte Ltd.
A private limited company has various advantages over the other two conventional types of business, which makes it the most flexible and the most favoured type of Singapore business entity. A private limited company has its own legal identity, which is separate from its shareholders and its directors. It can acquire assets, go into debt, enter into contracts, and sue, or be sued. In an LLC, members are not individually liable for debts or other obligations of the company. The ease of transfer of shares or changes in shareholders ensures that the companys continuation is not dependant on the continued membership of its members.
You can raise capital for expansion or other purposes, by bringing in new shareholders or issuing more shares to existing shareholders and your also benefit from the trustworthy image it commands compared to sole proprietorship or a partnership firm. Moreover, the ownership of a company may be transferred, either wholly or partially, without disrupting operations or the need for complex legal documentation. Most importantly, you benefit greatly from tax incentives as the effective Singapore income tax rate for companies for profits up to SGD 300,000 is below 9% and capped at 18% for profits above SGD 300,000, and furthermore, there is no capital gains tax.
However, an LLC also suffers from some disadvantages. Incorporation and sustenance is more complex and you need to follow certain compliance requirements. Also, the closure of company is comparatively more complex.
Public Limited Company
After a private company reaches a certain growth level to become a well established medium-to-large enterprise, the shareholders might decide to take the company public. A public company’s name in Singapore ends with Limited or Ltd.
Public companies are subject to significantly more stringent rules and regulations since they have the power to raise funds from the public.
In a sole proprietorship, the business can only be owned by one person and the owner personally owns all assets and liabilities of the business. It is the most uncomplicated form of business entity; and it is also comparatively more economical and easier to start and terminate a sole proprietorship company. You are in complete control of all the business affairs including the decision making and you benefit from all income generated by the business without sharing the profit with others. You are also free from the obligation of filing returns annually and only need to renew your membership every year.
However, the disadvantages of a sole proprietorship business far outweigh its advantages. Sole proprietorship is not a separate incorporated entity and therefore you and your business are rendered as the same legal entity. As a sole proprietor, you and your business are considered a single entity for the payment of income tax, and the income of your business is taxed to you. Moreover, as the sole proprietor of a business, you have unlimited liability, which means that if your business cannot pay all its liabilities, the creditors to whom your business owes money can come after your personal assets. Many entrepreneurs are usually unaware of this enormous financial risk.
You also do not gain from corporate tax benefits or incentives as the taxes are determined at your personal income tax rate. Capital is limited to your personal finances and business profits. Additionally, business expansion is limited and difficult due to the low public perception of such a business. Also, the business lives and dies with you and you can transfer the business only by the sale of business assets.
A partnership is an alliance of two or more persons, who are the co-owners of a business and its profits. Partnerships in Singapore can be of three types:
A general partnership is not a very economically feasible way to structure a business in Singapore because like a sole proprietorship, it is not a separate entity, which means you have unlimited liability. Another significant risk intrinsic in a partnership arrangement is that each partner is personally responsible for the debts and liabilities of the business and also responsible for the actions of another partner.
In a limited partnership, entails the concept of having limited partners in addition to a general partner. The liabilities of limited partners are limited to their investment in the partnership (capital or property), though such partners cannot participate in the management of the business in a limited partnership. Like the general partnership, even a limited partnership in Singapore is not a very favoured popular form of business structure.
Limited Liability Partnership (LLP)
LLP was introduced in Singapore in 2005, through enactment of Limited Liability Partnership Act. It gives the owners the flexibility of operating as a partnership while enjoying many of the benefits that come with a corporate body like a private limited company. A LLP must have at least two partners at all times.
An LLP has a separate legal identity and can own property, enter into contracts, sue or be sued in its own name. Most importantly, the partners of the LLP will not be held personally responsible for any business debts incurred by the LLP for any laxity or mistakes made by another partner, and is only responsible for his own omissions.
Any changes in the LLP (e.g. resignation or death of partners) do not affect its existence, rights or liabilities, and compliance requirements are also simpler than a private limited company.
However, LLPs lack the ease of ownership transfer and investment that a company structure provides. It also does not gain from corporate tax benefits.
An LLP is primarily suited to the needs of service professionals (accountants, law firms, architects, etc.) who desire to set up a joint practice in a common field. The owners must get into very detailed agreements about how the profits and management responsibilities are to be shared.
Choosing the Right Legal Form
To put things in a nutshell, both sole proprietorship and an LLP are suited only to certain types of businesses.
Sole proprietorship is feasible only for Singapore nationals who want to register a small business and the nature of their products/service do not have liability issues.
On the other hand, an LLP is suitable if you are in a service-related business which involves selling your services by way of the profession you hold like an accountant, lawyer, architect, etc. and you have one or more additional partners in a similar profession with whom you would like to partner your business with.
For all other cases, incorporating a private limited company in Singapore would be the best choice.
Employers have a duty of case and responsibility in protecting their employees, business partners, independent contractors and visitors. In other words, employers must take the necessary measures in order to maintain the working environment in a safe condition. Furthermore, every employer must provide employees with all the necessary health and safety equipment.
In case you have been unlucky enough and involved in a workplace accident, which was not your fault and you suffer from the relevant consequences you may file a personal injury claim and ask for compensation. The compensation is a mean to cover potential financial losses and medical expenses. As a result, you will have to prove that the accident occurred due to the negligence of another party during your employment.
Apart from the economic losses, a work accident compensation may relieve the physical and psychological pain. Generally, you will receive the compensation you deserve only if you consult a litigation lawyer. Specifically, a litigation lawyer LLC will study your case thoroughly and develop a strategy so that to achieve an optimal solution for you and your family. Firstly, you need to submit the necessary evidence to the lawyer. Afterwards, the lawyer of will do the necessary investigations and study the reports of other experts, such as medical and engineering reports.
1.Ask for medical assistance. In this point, it should be pointed out that you have the right to consult a doctor of your choice. In case you have been injured immediately after the accident, do not try to move.
2.Get the contact details of witnesses. This may support your case.
3.Document the accident properly by mentioning all the injuries and problems you face and indicate the problems caused in your daily life due to the injury.
4.Keep medical records and documents. Moreover, you should mention any information related to the treatment you followed. Medical records can be an important evidence.
5.Contact the insurance company of your employer. However, we would like to warn you not to accept any offer before assessing it thoroughly. Usually, insurance companies do not compensate the victims adequately. A litigation lawyer is able to assist you to examine any emerging offer.
6.Ask for legal support and file a personal injury claim. A professional legal support may guide you to get the compensation you actually deserve.
7.Avoid discussing your case with any unnecessary parties such as insurance adjusters and anyone else intending to get a statement from you.
8.Do not proceed to any arrangements until you are cured.
9.Do not proceed to any action because other persons say that you have to do it. Before proceeding to any action consult a litigation lawyer because a litigation lawyer is able to advise and guide you properly.
Find more information and our contact details here:
Contact us and file a workplace accident claim:
Workplace accidents may cause serious economic damages. Consequently, the compensation amount should correspond to your pain and potential financial losses. Michael Chambers& Co. LLC is able to assist you during the whole procedure. If you wish to file a workplace accident claim, then you should contact one of our litigation lawyers:
Personal Injury and Road Accidents: Michael Chambers& Co. LLC offers NO WIN NO FEE service
A road accident caused as a result of poor road maintenance or by negligent drivers may lead to a severe personal injury or death. Usually, the victim seeks a way to receive a compensation that would correspond to the physical and psychological he or she is suffering. Furthermore, the compensation is a mean to recover potential financial losses.
The professional assistance of a litigation lawyer may contribute to receive the compensation you actually deserve. The litigation lawyers of Michael Chambers& Co. LLC will examine your case thoroughly and develop an adequate strategy. Furthermore, the litigation team of Michael Chambers&Co. LLC will take into consideration other experts reports, i.e. medical and engineering reports, in order to support your case properly.
Michael Chambers and his team advise you to gather the following information so that to support your case in the court:
the exact location of the accident
detailed information regarding the poor road conditions.
contact details of witnesses
photos of the damaged vehicles, the location, the signs of poor road conditions, etc.
The litigation team of Michael Chambers& Co. LLC advises you to follow the step below:
1.If you have been injured, ask for immediate medical assistance. You have the right to choose your doctor. Write down all the details related to the treatment, medications and other relevant instructions given to you by the doctor.
2.Take picturs of the place where the accident was held. Usually, insurance companies take photos of the scene. However, Michael Chambers and his team suggest that you also should take pictures of the place where the accident occurred. In addition, you should write down key details concerning the circumstances under which the accident occurred.
3.Gather the contact details of witnesses since their statements may support your case.
4.Call the police. The police will examine the scene of the accident and prepare a report. Have in mind that the polices report could be evidence at the Court.
5.Call your insurance company and give the contact details of the involved drivers except for yourself. Michael Chambers & Co. LLC advises you not to sign any document without a thorough assessment and reflection since this might deprive you of the right to claim compensation or you might receive a smaller amount than the one you deserve.
6.The most important step is to ask for a professional legal assistance. A professional legal guidance will guarantee that you will get the compensation you deserve. Usually, insurance companies may offer to arrange everything for you. Insurance companies cover only medical expenses, and sometimes other damages, i.e., car damage. That is to say, insurance companies do not compensate you for personal injury, or the amount they offer does not correspond to the one you deserve.
Michael Chambers& Co. LLC focuses on providing cost-effective services and achieving an optimal result for the client. In case of personal injury caused by road accidents, Michael Chambers& Co. LLC offers a NO WIN NO FEE service. In other words, legal expenses are remunerated only if the victim receives the compensation he or she deserves. If you wish to speak to one of our lawyers, then contact us:
Source: Personal Injuries and Road Accidents in Cyprus:
Find more about personal injuries claims in Cyprus here:
Nicole Pavlik has been a paralegal for a time period of 7 years before commencing her career as an attorney in 2012. As a paralegal, she has known the significance of communicating effectively with clients and now as an attorney, she gives immense attention to her clients. Nicole is well aware of Scottsdale estate planning attorneys that can be frightening and expensive. Therefore, she offers a variety of legal services to her clients while being as affordable as possible.
She is one of the best Scottsdale estate planning attorneys that offer one hour complimentary consultations where she answers the concerns and questions of her clients in detail. Nicole Pavlik provides a flat fee quote that incorporates all telephone calls, meetings and emails from the beginning to end of the legal case.
Most of the people know “estate planning” as something that is only for people who are ill, old or wealthy. However, estate planning is the establishment of a definite plan that focuses on management of your assets during your life and distribution of those assets after your death.
Our Scottsdale estate planning services aim to achieve your personal and family goals while relieving the burden of management of your financial and legal affairs. Following are the typical estate planning documents that will be prepared at our end:-
-) Durable Powers of Attorney
-) Health Care Power of Attorney
-) Mental Health Care Power of Attorney
-) Last Will and Testament
-) Revocable Living Trusts
-) Irrevocable Living Trusts
-) Final Disposition Instructions
-) Living Will
-) Durable Power of Attorney
Business Planning, Business Formation and Other Legal Services
Are you planning to start a business? Do you want to know the secrets of developing a successful business? If yes, this is your STOP!
For many people, business formation is a dream coming true. Nevertheless, if the business is not established properly, the dream can turn out to be a disaster at any moment.
Whether you are doing business planning for a sole proprietorship, LLC or a corporation, we will take you towards the entity that will help you accomplish your goals while giving maximum protection to your business.
If you are still in search of more information or have any concerns, feel free to get in touch with us at 602-635-6176 or visit our website http://www.npavliklaw.com/ for more details.
As we wave goodbye to 2005 and charge into 2006, it is time to get your house in order. This is particularly true for the legal issues in your life.
As drab as it may seem, legal planning can help you avoid disasters in your life. With the turn of the calendar, now is the time to give your life and business some thought.
On the family front, you should be thinking about changes you experienced in 2005 and if any of them require you to take some steps. If you got married, you need to jump through a few loopholes related to changing names, addresses with relevant companies and so on. If you had a new family addition, have you give consideration to updating your will or family trust? On a less enjoyable subject, are there any steps you need to make with parents who are growing older. Elder abuse, particularly financially, can be a problem and you may want to provide assistance to elder parents so they aren’t taken advantage of.
On the business front, now is the time to take a step back and reflect upon how things are going. Did you meet your goals in 2005? If you didn’t, how do you plan to make 2006 a better year? In making this determination, you need to be honest with yourself and make sure you evaluate your week points. From a legal perspective, are all of your relevant business documents up to date? Have annual minutes been filed for your corporation or LLC?
A particular area where businesses fail to follow up are changes in contracts. When entering a contract, both parties tend to see great success in the future. Inevitably, they discover the agreement needs to be tweaked to allow for circumstances and so on. When this occurs, the parties will often reach an oral agreement or just shake hands on it. Such agreements are not binding on the parties. If a dispute occurs, the business relationship will be evaluated using the original agreement. That can lead to a nightmare of circumstances. If you’ve tweaked an agreement with another party, now is the time to get such an amendment in writing!
April 15th sounds a long way off, but it will come faster than you can imagine. Yep, I’m talking about taxes. Do you feel you pay too much in taxes? Of course you do. This is a god given right of every American. Well, now is the time to do something about it. You should contact your CPA and do some tax planning for 2006. Saving taxes often comes down to how you collect revenues and distribute them. Slight changes can save you tens of thousands of dollars, but you must implement them early in the calendar year.
As the calendar flipped to 2006, you undoubtedly made a resolution to do something. Getting your legal house in order probably wasn’t what you had in mind, but it is something you should do!
Richard A. Chapo is a San Diego business lawyer with San Diego Business Law Firm providing legal services and legal advice for businesses. Visit SanDiegoBusinessLawFirm.com to read business law articles.
Depending on your needs, it’s a good idea to find a business lawyer who understands as many of the following legal skills as you can. Although if you occasionally need to go down one specific legal trail and require a specialist, your lawyer can certainly counsel you as to the value of that legal specialist.
So the more of the following skills your lawyer has, the stronger a counselor he or she will be.
Business organization – You need a business lawyer to help you decide whether a corporation or limited liability company (LLC) is the best business organization for you; then prepare and file the required paperwork
Taxes and licenses – Even if an accountant prepares and files business tax returns annually, your lawyer will register your business for federal and state tax identification numbers, and understand the tax consequences of the basic transactions in which your business engages.
Real estate – Leases of commercial space can be extremely intricate and are often skewed to benefit the landlord. Your attorney should research and then create a standard “tenant’s addendum. ” It will include provisions that benefit you, and can be added to the printed form lease document. Your attorney should also be able to negotiate these points successfully with your landlord.
Contracts – Once your attorney understands your business, they can prepare standard form contracts you will execute with customers, clients and vendors. They will also be able to assist your responses to contracts that other people will want you to sign.
Intellectual property – If you are in a media, design or other creative-type business, it is certainly a “plus ” if your lawyer can help you research and register your products and services for federal trademark and copyright protection. If your lawyer says he or she “specializes in small businesses, ” then they should have a close working relationship with intellectual property specialists.
Do you want a big firm or small one? – Generally speaking, the larger the law firm, the higher the hourly rates. But when it comes to services, larger firms offer more than smaller. Today, business lawyers are more specialized. So as previously stated; you might at-times need a specialist and will have to deal with two or three (or even more) attorneys.
If your business is small, a single attorney with good specialty contacts is best. Larger companies mean larger law firms. If you’re a fast-growing entrepreneurial company with plans to eventually go public, consider lawyers who are recognized by investment bankers and venture capitalist.
When choosing a business lawyer, gather specific information relative to your needs:
* How much, and what type, of experience, the attorney has with clients similar to you. * What are the firm’s referral processes if you need outside specialists? * Is this business lawyer knowledgeable in your specific industry? * Verify that your attorney handles client work, rather than recruiting new clients. * Ask about fees and billing. There are different types of fee plans, including flat-fee, hourly, retainer and contingency. Find out how flexible they are in letting you choose.