Why Only Private Limited Companies in Singapore Benefit from These Privileges?
The primary reason as to why a private limited company is allowed to acquire and own properties in its name is related to its legal status. According to Singaporean business laws, a private limited company is to be regarded as its own entity. This fact sets it apart from sole proprietorships and partnerships, which are not regarded as such and thus force their owners to be completely responsible for their liabilities. The fact that private limited companies have a specific legal status in Singapore also means that such companies are to be granted certain rights. When the owners of a private limited company believe that these rights have been violated, they are therefore allowed to use the company’s name for the purposes of filing a lawsuit. Similarly, anyone who believes that a private limited company has violated their rights may themselves sue the company for the same reason. The identity of a private limited company is not intrinsically tied to the identity of its owners. Therefore, the status of the company will remain unaffected by any deaths, changes of ownership, or any other circumstances which will bring about a drastic change related to the ownership of the company. Thus, when one considers the many privileges which private limited companies are able to receive, it should not come as a surprise that it is the most common business entity in Singapore.
After having read about the privileges which are granted to private limited companies, you might be thinking of starting such a company yourself. For such a purpose, this is where we at Paul Hype Page & Co come in. We provide highly recommended services for anyone intending to start a private limited company or any other business in Singapore. The incorporation services which we provide have been of much assistance to many a new business owner across the country. Thus, you should allow us to be the first to serve your needs pertaining to the incorporation of your own Singapore-based business.