If you are thinking of setting up your own company and working for yourself then you are to be commended for that. It is a very brave decision to decide to go out and create some kind of business enterprise by yourself but you also need to be aware that there are many pitfalls as well. If this is your first foray into self employment then you need to protect yourself at all times. Depending on what kind of entity that you set up, your personal belongings like your home and your car could be at risk because of the liabilities that you are responsible for. This is why it makes so much sense to register your new business in order to protect what is yours. The first thing that you need to do therefore is to set up a private limited business for your business liabilities.
If you have never done it before, then presenting all of the paperwork to the relevant authority may not be as straightforward as you might think and so setting up a private limited company in Singapore requires the essential services of a provider that knows exactly what it’s doing. These providers will do all of the paperwork so that you don’t have to and this leaves you time to concentrate on your business and to generate new customers. If the thought of setting up a private limited company fills you with a little fear, then here are some ways to alleviate that which will help explain the benefits of what you are doing.
- Personal liability is limited – As I mentioned previously before, you shouldn’t be jeopardising all that you have worked for up until this point on a new business enterprise. Nobody knows what lies ahead and so it’s best to protect you and your family by setting up a private limited company. Everyone should be able to smoothly start a business and the point of this is that if things go pear shaped and you have to sell your business and pay any bills that are outstanding then the courts cannot instruct your personal belongings like your home to be sold in order to pay. Your business is treated like a separate entity and it is liable for its own debts. This is peace of mind that all new business owners should have and insist upon.
- You can reduce your tax liability – Many new business owners wrongfully think that if they trade as a sole trader or as part of a partnership that they will get to avoid the brunt of taxes. The opposite is actually true and private limited companies pay much less tax than even individuals do. You get a tax break for the money that you spend within your business like staff training, advertising and the tax and insurance company vehicles. There is lots of free help out there when setting up a company, so take advantage of it.
As you can see, it makes sound financial and business sense to set up your business as a private limited company to manage your business liabilities. You’re taking the necessary steps to make sure that in the unlikely event that business is not as good as you planned, then you don’t have to sell off your personal possessions to pay any debts outstanding. You probably have many things on the list that you need to do for your new business but making sure that your liability is limited should be at the very top.
