It depends upon what your business is and where you live.varmarashmi wrote:Great information on this site, thanks. I stay in a rented condo. Would I need to hire a virtual office space or can I provide my condo address as the office address? TIA.
There is nothing in the companies act that would prohibit you from owning shares in another company. What you haven't stated is if you are also a director of the company.minatomove wrote:I'm on a DP and have set up a sole proprietorship - this thread has been an incredible guide for me in preparing to apply for a LOC - thank you everyone who has shared their experiences!
Two questions I hope you may be able to help with - I can't find anything on MOM and am finding conflicting info on other sites - hoping the oracles here may be able to shed some light. If not pertinent to this thread, please advise. Thank you!
1. I'm currently the majority shareholder of a locally registered Pte Ltd.; not drawing a salary. Can a DP holder be a shareholder in a company and apply for a LOC with another (business), or do I need to transfer my shares before applying for the LOC?
It doesn't matter at all whether or not you draw a salary. The net profits from the SP go directly to your income reporting on your personal income tax. Example: SP has revenues of $20,000, expenses of $10,000, and you pay yourself $10,000. SP reports zero profit but must give you an IR8A for $10,000 of taxable income.If cannot be both a shareholder and have LOC, and decide don't want to transfer shares, is the following possible:
2. Not draw a salary from the sole proprietorship, and therefore not apply for a LOC? Background: we are in the midst of our PR application. If it comes through, applying for a LOC is no longer a concern. Working on the premise that our application will be successful, can I operate the sole proprietorship (advertise, import, make sales of product, etc.) without drawing a salary for the next 4-6 months, or is this not advisable - too grey? It's a small online business, low sales volume expected initially.
Thank you again!
If you are a passive investor, and have no other roles as registered at ACRA, then I don't see how this would be different than holding shares in the dry cleaners down the street.minatomove wrote:Thanks very much for your comments, and clarity re: Q2.
I'm not a director of the company that I have shares in. My husband and I are the 2 shareholders; he is the director. Invested in it because I believe in viability of the company (& my husband!). It's not my area of expertise, so I would not be employed by it.
Have written to MOM to see if is any issue at all their side for me to be a shareholder in the company and apply for a LOC from a business (my Sole Proprietorship). Hopefully won't be but wanted to be 100% clear before starting - came across potential conflict when looking for general LOC info - hadn't even crossed my mind before!
thanks again!
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