The corporate legal arena is daunting for those not familiar with it. Still, it’s not a reason to rely on misinformation when it comes to navigating this branch of law.
In this post, we’ll look at five of the most common myths surrounding Singapore corporate law.
To present corresponding facts, we’ve provided links from reliable and official sources, as well.
Bankruptcy is the most common reason for closing down a company.
While it’s true that a lot of bankruptcy lawyers in Singapore have dealt with bankrupt companies closing down, this isn’t the only reason for a business ceasing to exist.
Burnout, a changing economy, marketing trends, and retirement are all common reasons for a company being sold or closing. And business failure, whether it’s brought on by financial losses or not, is often a reason to cease operations, as well.
You can consult an employment lawyer to see about your rights if the company you’re working for decides to close. There might be clauses and incentives you missed on your contract when you first signed on in case of company closure.
Income from other countries is subject to Singapore corporate taxation.
Singapore is known for low tax rates for individuals and businesses, making it an exemplary and efficient system for other countries to follow.
And when it comes to corporate taxation, only the income sourced or received from Singapore will be taxed. Singapore’s tax policies are built in such a way that there are no taxes on foreign-sourced income or capital gains.
So that you can understand how your taxes work, your company’s human resource management should explain how chargeable income, tax rates, and additional rebates work where applicable.
And if it sounds complicated, professional tax consultants in Singapore can expound on these policies in detail.
You can take your sweet time incorporating your startup.
Incorporating your startup requires skill, know-how, and perfect timing. It’s a good practice to incorporate early especially if your business has more than one owner involved, and if you have any intellectual property to protect.
Incorporation is also a great way to attract the kind of employees your company needs. Offering employees stock as an incentive can encourage company loyalty and growth, too.
That’s why company incorporation services in Singapore exist — to help entrepreneurs with end-to-end incorporation checklists. This includes everything from company registration to getting the best payroll services for your business.
You can also consult some reputable business consultants for practical solutions to startup concerns.
You can’t afford the services of a corporate lawyer.
Because they deal with the minutiae of businesses and everything that has to do with them, people automatically assume that they can’t afford the best corporate lawyers in Singapore.
But to protect your business’s interests and future growth, hiring one is a must. Luckily, you can have your pick of a diverse range of corporate legal minds with different specialisations and flexible rates.
To get the closest fit for your company, look for a lawyer (or a firm) with a good track record, honest and positive client feedback, and personalised services for clientele that is from all walks of life.
The law regards members of a company as its identity.
Companies could use a prominent member as part of their branding, especially if that member is a celebrity or well-known in their industry.
However, incorporation renders a company’s existence and identity separate from that of its members. This means company members do not share any of the company’s liabilities and are not obligated to pay any debts incurred by the company.
So while corporate secretaries can file the company’s annual returns and other legal documents, they aren’t part of the incorporated company’s personality.