The Singapore Company Law provides for various types of legal structures foreign investors can use in order to form a company in the city-state. Those wanting to start small can register as sole proprietors and then upgrade their business by changing company types. The following types of structures, apart from sole traders, can be employed by those wanting to open a company in Singapore:
- – partnerships, which can be general or limited;
- – limited liability partnerships;
- – private and public limited liability companies.
Our company registration agents in Singapore offer company formation services for any of the types of structures above. Our team can also help you in case you need company liquidation services in Singapore.
The video below shows you how you can change business forms in Singapore:
Steps to take in order to change business forms presented by our experts in opening companies in Singapore
Foreign investors opening a small company in Singapore usually change from sole traders to limited liability companies, once their activities expand. The Company Law in Singapore does not provide for direct changes of business forms, which is why in order to switch between company types, one must de-register a company and then incorporate a new one. Our Singapore company formation agents present four main steps to take when changing company types in this jurisdiction:
- – de-register the first company;
- – register a new company in Singapore;
- – transfer the assets and contracts from the old company to the new one;
- – apply for the necessary business licenses.
Considering the need to apply for new business licenses when changing company types, it is advisable to seek professional guidance.
When switching from one type of legal entity to another, one can indicate the new type of business form they want to use for the new company. They must also provide all information about the old company, including the termination date of the business. Then a new company registration form will be filed with the Accounting and Corporate Regulatory Authority of Singapore.
Why do foreign investors change company types in Singapore?
The most frequent reason for changing business forms in Singapore is the expansion of the company’s activities. Also, most of enterprisers switch from sole proprietorships or partnerships to limited liability companies because of the advantages the latter offers: limited responsibility to the owner with respect to the company’s debts and obligations.
If you need assistance in opening a company or changing business forms in Singapore, you can contact our Singapore company formation representatives.