A Complete Guideline Whether To Incorporate Your Company Or Not- Superiority Or Liability

So, after a lot of effort, you have started your dream company. It is also making a good fortune for you. Now you have been thinking if it’s a good idea to incorporate your company. You have spent hours searching on the internet about “how to incorporate a company” Well, to give a little bit of relief from overthinking, in this article we are going to discuss the possible advantages and disadvantages of incorporating your company. It will help you to decide on the next steps.

Let’s begin with the advantages first.

v Some of the pros of incorporating your company

Fewer limitations

There are very good scopes for leading your company towards profit in Singapore. It’s mostly because of government regulations, which has created such an environment. After incorporating your company, you will have fewer liabilities. It means you are part of a legal entity now. Even in the case of debt, you will have fewer limitations than noncorporate companies. Also, you can enjoy a lot of tax benefits as well.

Run a trustworthy business

After completing the process of incorporation, your business will have more credibility. Before incorporation, you could work with local investors or those who know you personally. But after being incorporated, you can attract investors from outside too. Becoming corporate will help you to expand your business.

Use more partners

After being incorporated you can share your business ownership with other board of members. Having more creative people on the board will help you to make more profit. You can even think about outsourced human resource management. One of the prime benefits of incorporation is that, even if the founder passes away, the board can run the company. Also, it gives the company an advantage to transfer ownership by selling shares.

If there are advantages, there have a few disadvantages that you have to deal with. Now let’s take a look at the cons.

v Cons of becoming a corporate company

The cost factor

There is an initial fee for becoming a corporate business, such as filing articles, the fees for the attorney or accountants and the corporate tax Singapore. Then you have to provide for the ongoing fees for keeping your company incorporated. Also, you need to do business by the rules made by the government. These rules must be properly maintained or you will have to face legal consequences. You must have proper documentations for corporation management, accounting, and operations. The company has to maintain all the paper works, such as tax returns or meeting sessions or proper licenses and permissions to carry out any businesses.

No single ownership

Incorporating your company means now you have to share your company with another board of members. You cannot make the decisions all by yourself as the company is governed by the board of directors. This means if you have an idea, which could generate more profit, it cannot be applied directly. You have to present it in front of the board of directors. If the majority is satisfied with the assured future outcomes, you can apply it to your company.

It is always a big decision, whether you want to be incorporated or not. There are arguments on both sides with possible advantages and disadvantages. But if you look at the growth of the big companies, you will notice a similarity. All of them become known after being incorporated. On the other hand, your company should be in a good financial state to become a corporate company.