It Makes Perfect Sense To Protect Yourself In Business.

There are many businesses that are based in their home countries and due to their success, they are thinking of branching out and not just within their own country but within others. It seems to be a very logical thing to do and there are some countries out there that are relatively untapped for the product or service that they are able to offer. Many people worry about doing business in another country and that’s to be expected, but you will find most of the things that apply in your own country will apply there as well. It is tempting to start up a new business and just remain as a sole trader in order to protect what is yours and be sure that you own it outright. However, you are leaving yourself open to a number of liabilities and this is why it always makes sense to start as a private limited company.

 If you are thinking of setting up a private limited company in Singapore, then it is a wise thing to do and you need to deal with the right service provider to make it happen. Some people are a little confused about the difference between a public limited company and a private limited company, so to remove any of the confusion, here are some of the benefits for anyone who is planning to start a private limited liability company.

1. There is limited liability – As the name suggests a person is only liable for the debts that may be owned by the company only up to the amount that they have put into the business as equity. The good thing about this is that it protects their personal property and personal savings and everyone needs essential peace of mind. You only lose the investment that you originally put into the business and nothing more. However, this doesn’t mean that you won’t be able to turn your idea into a real and sustainable business success.

2. More business credibility – It is fair to say that a lot of other businesses especially wholesalers and suppliers don’t really want to deal with individuals as opposed to dealing with a limited company. When you are in a sole partnership by yourself, if you were to die then your business will die along with you and companies just do not want to deal with a business entity that could end at any time.

3. Easy transfer of shares – if shares need to be transferred from one shareholder to another person due to the fact that they want to leave the company altogether, they can transfer the shares to another person and so this ease of transferring shares makes it a popular business structure for many investors. There is lots of additional advice as to how to set up a limited company so that you can go on to be really successful.

Due to the fact that it is a private limited company, it is much easier for the entity to raise funds or loans in case they need them. Banks and other lending institutions much prefer to deal with companies that are registered and they have more confidence in their longevity, so that they know debts will be paid back over time. The main selling point for a private limited company is that it allows for continuity and so if the shareholder leaves the company, it will continue to be viable.