There are many business entities which exist in Singapore today. These include the partnership, the representative office, the sole proprietorship, and the private limited company. It is the private limited company which is the most common business entity in Singapore today and therefore dominates the country’s corporate landscape. Private limited companies are granted certain privileges which are not available to any other business entity.
Privileges of Singapore Private Limited Companies
Among the privileges accorded to a private limited company is that it has the legal right to acquire and own properties in Singapore. A private limited company which is based in Singapore can officially register ownership over any properties it has acquired through a sale or any other method of acquisition. It may make such registrations in its own name. Singapore private limited companies are also permitted to participate in any relevant legal and litigation proceedings.
This allows a private limited company to sue or be sued in a court of law. A private limited company may sometimes choose to file a lawsuit for the purposes of prosecuting a claim against third parties which it believes to have infringed upon its rights. Private limited companies are also allowed to defend against similar claims which third-party entities may have filed. Another important privilege granted to private limited companies is that of perpetual succession. The concept of perpetual succession allows a private limited company to remain in existence until its owners decide to dissolve the company. For this reason, the existence of a private limited company will last indefinitely, even if there is a change in the structure of shareholding of the company or if any of its shareholders dies. Furthermore, even if such circumstances were to take place, shares can still be transferred easily; any deaths or changes in the identity of shareholders will not alter this fact.
Why Only Private Limited Companies May 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.