On the 1st of October 2018, the Singapore parliament passed the Variable Capital Companies Act. The act was assented to by the President on the 31st of October 2018. The Variable Capital Companies Act provide for the incorporation, operation and regulation of new corporate entities called Variable Capital Companies. A Variable Capital Company (VCC) has [...]
A Social Enterprise is a typical company. It is basically a normal, typical company which is profit driven and the incorporation process is basically the same as starting a new company because a starting a Social Enterprise is starting a normal, typical company. There is no special SSIC code which companies must place on their [...]
A convertible note is a form of loan to the company which can be paid back in the form of equity. The investor or lender places monies in a company and receives discounted shares which are issued at a later date. This is a very popular instrument in which startups use to raise funds. The [...]
If you were to start a business, namely in Asia, you would inevitably factor in starting it in Singapore, among others. Here are some reasons which may compel you to eventually start your business, and company, in Singapore. 1) Singapore has one of the lowest corporate taxes in the world The corporate tax rate is [...]
Company common seals and company stamps are common items which companies may use on documents. There is a difference between the two and companies can decide whether to have them or not. Company common seal A company common seal is an official seal used by the company to endorse documents like share certificates, deeds and [...]
For various reasons, you may wish to close your company. To close a company you can either wind up or strike off the local company. Striking off a company is the more straightforward option so long as the requirements are adhered to. The striking off can be done via the Bizfile+, the Business Filing Portal [...]
Minority shareholders are shareholders with a non-controlling stake in the company. It refers to the shareholders with voting rights but the number of shares that they hold are insufficient to have a say in the company's affairs. In most cases, this refers to 50 per cent of the company's voting shares. Shareholders with voting rights [...]
As a business grows, some business owners may want to convert their sole proprietorship into a private limited company. Here are some of the reasons why some business owners may want to make the switch. 1) To limit liabilities As a sole proprietor, your liabilities are unlimited. This means that you are liable for any [...]
We briefly spoke about dormant companies in a previous article: What is a Dormant Company Here is a further elaboration to the topic. A company is considered dormant during a period in which there is no accounting transaction. A company is considered dormant if: It has been dormant from the time of its formation It [...]
Traditionally, company seals are used by companies to execute deeds. Instances, whereby a company seal may be used, are when purchasing a property or issuing a share certificate. However, with effect from the 31st of March 2017, it is no longer necessary for a company to execute such documents with a company seal. Section [...]