Singapore has been in the limelight for a significant amount of time now. The country has made a name for itself for being a popular tourist destination. The country is also well-known for hosting a lot of businesses. Many investors and those seeking employment are going to the country every year. The move by many business owners to start branches in the country is the result of the good business atmosphere and policy that tends to favor any business owner. Many people might be thinking of starting different businesses in the Lion City because of what they might have heard or experienced. Since many business owners might be starting companies for the first time in the country, it is essential to know the different kinds of businesses and what the country’s laws state about them.
What the Law Says on the Identity of Different Kinds of Businesses
When starting a business in any country, you need to follow a set of rules and regulations. Though they may vary, what the law says tends to determine the type of business you will have. Many businesses in Singapore are under sole proprietorship. Since you may be interested in starting a business in the city-state, you may want to know what the law says about sole proprietorship enterprises. Before you can be an entrepreneur in Singapore, you need to at least have a Singapore visa. Getting one can be challenging to many people, even to those who are looking for employment. Here is an official source for you to check on how you can quickly get a visa.
Sole proprietorship in Singapore’s law entails that the given business is considered the same as the owner of the business. This simply means that the business owner has full control over the company and all of its operations. The owner of the business is responsible for what the business is doing. For example, if the business is faced with debt that it’s unable to pay, debtors are allowed to take the owner’s personal property.
The law in the city-state classifies both private limited company and limited liability partnerships as separate identities from its owner. This means that the business can conduct its operations with its own identity without involving whoever owns it. Both businesses have separate legal entities from the owners.
Accountability
Many company owners tend to suffer when their business is faced with debt or legal charges. This is especially common when the company is classified as a sole proprietorship. As an owner of a sole proprietorship business, you have unlimited liability. This means that when the business is faced with debt, your personal property can be seized by creditors. You can also face charges in court when your business breaks the law or the business is sued.
On the other hand, private limited companies and limited liability partnerships in Singapore tend to face obligations on their own. The business owners have limited liability when it comes to the business. If you are an owner of either of these two businesses, your personal property is safe when the business is charged under law or is faced with debt.
Conclusion
Before starting a business in Singapore, it is vital to know what the country’s law says about different types of businesses.