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is it possible to convert sole proprietor to pte ltd?
Posted: Mon, 16 Apr 2012 6:42 pm
by Mr Tan
...any answers.
Posted: Mon, 16 Apr 2012 7:59 pm
by sundaymorningstaple
I could cut & paste or reword it to look like mine but this is easier:
http://www.guidemesingapore.com/incorpo ... ed-company
re
Posted: Mon, 16 Apr 2012 8:46 pm
by Mr Tan
my LLP is almost 7-8 years old, but it carries no transaction . is there any benefits for a company to be 8 years old or should i just start out a new company ?
Posted: Mon, 16 Apr 2012 10:08 pm
by sundaymorningstaple
So, if your company has never had a transaction, you have basically a shelf company, correct? Therefore, as you have never done business you don't even have any goodwill and the name is unknown in any rate. I think I'd just ditch it and start afresh.
Posted: Tue, 17 Apr 2012 7:31 am
by ausinsg
The best structure will depend on the type of business you intend to operate.
If you are going to be making a profit in the first three years, then there are benefits to using a new exempt Private Limited company.
You will pay no corporate tax on the first $100k of profit, and a 50% reduction in tax on the next $200k in profit during this honeymoon period.
If you know you have a profitable contract in hand, this can be a nice sweetener.
Why not seek the advice of a lawyer/accountant before you go any further?
Posted: Tue, 17 Apr 2012 9:12 am
by sundaymorningstaple
Actually, it's a no brainer. A Pte Ltd is better both from a structural POV as well as from a liability POV. A sole proprietorship puts everything you own at risk while the Pte Ltd has a life of it's own and the directors, as long as they haven't done anything illegal, cannot be sued for the company's liabilities.
Posted: Thu, 19 Apr 2012 12:15 am
by Mr Tan
thanks for the kind advise. i think i just ditched
sundaymorningstaple wrote:So, if your company has never had a transaction, you have basically a shelf company, correct? Therefore, as you have never done business you don't even have any goodwill and the name is unknown in any rate. I think I'd just ditch it and start afresh.