What is a Company?

     A corporation is a legal person.
     It is separate from those who own it.
     It is generally separate from those who manage it.

     Therefore, when one's business corporation is sued, there are provisions in the law to protect owners (shareholders) and officers of that business corporation from personal liability (i.e. loss of one's personal home, car, bank accounts, etc.).

     A company is an incorporated entity and once registered under the relevant Act of each country, it has legal personality. It is different from a business firm and usually has the words 'Pte Ltd' or 'Ltd' as part of its name. Any person wishing to incorporate a company is advised to engage a professional, e.g. a lawyer or an accountant to assist him in the preparation and filing of the necessary forms for incorporation.

Types of Companies

     There three main types of companies are:

           •    Private Limited Companies.
           •    Public Companies.
           •    Branches of Foreign Companies.

Why Incorporate

Reduces Personal Liability

     A corporation is a separate person from the one or ones who own it. Therefore, when a corporation is sued, there are provisions in the law to protect the owners (shareholders) and mangers (officers and directors) from personal liability. Once you do business with the public or have even one employee, you are wide open to legal liability. A corporation can provide a legal shield between your business life and your personal life.

Adds Credibility

     A corporation has greater credibility in the eyes of many customers and lenders than does a sole proprietorship or partnership. When you have taken the step to incorporate it is perceived that you have long-range plans for your business. Because of the added trust, his may increase the likelihood that customers and lenders will be willing to part with their money. In this regard, a corporation may, indeed, increase your profits and ability to ex Raising Capital

     There is a greater source of capital available to corporations than to partnerships or proprietorships. Because the corporation is separate from the owners, people tend to be more willing to invest money without accepting liability or responsibility for company business.

Separate Legal Entity Status

     Because you and your corporation are two separate legal entities, lawsuits brought against your business do not need to affect you personally. When the corporation borrows money, there are measures such that you are not personally liable to repay the debt. A corporation remains after the life of the owner(s). However, a sole proprietorship ceases to exist after the life of the owner.

Perpetual Duration

      A Corporation continues its life after the death of the owners.

Who can form a corporation?

     Any person over the age of 18 can form a corporation.

Who must You Appoint In Your Company?

     When you set up a company need to engage a professional to help you maintain your corporate records.