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LLP vs Company

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olivergm
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LLP vs Company

Postby olivergm » Tue, 18 Jan 2011 1:56 pm

Hi,

Im looking at options for opening a small business. To qulaify for the Tax exemption scheme for new start-up's do you have to be a company or does this also apply for an LLP?

If this only applies to co's what are the negatives of a co over an LLP? Im guessing more red tape. Are we personally liable in the case of a co. and do we need to prepare reports and accounts?

Thanks

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Postby Mad Scientist » Sat, 22 Jan 2011 4:55 pm

I am not sure what is LLP means in your context unless you are referring to EPEC which you need $50 K as paid up.
If this is so EPEC you need to have business plan , expected turn over in three years etc to show that you can sustain your business here and able to satisfy MOM to start up the business here


You can go to www.acra.gov.sg or www.ira.gov.sg for more guidelines

In a nutshell there are three routes if you are local or SPR

1. Sole Proprietor

2. Partnership

3. Company with limited liability i.e Pte Limited

Tax exemption will be on No.3 to my knowledge. There are not much negatives as company tax is lower. Your liabilities are limited to the company only as directors.
You need to have a local director as a partner if you are on EP. You do need to employ local before you can employ FTs, there is a quote system ratio between local and FT

Is this what you are looking for ?
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Postby Godmode » Thu, 27 Jan 2011 4:49 am

Scientist, you missed the LLP, which is the limited liability partnership where liability is divided amongst the 2 partners. If u have more than 2 partners, you can only register a pte. ltd.

The tax break of $100K and then 50% of next 200K, is applicable only to pte. ltd companies which private ltd and not for sole props and LLC.

sorry to hijack the thread but I registered a sole prop last week and might be looking to convert that into pte ltd later this year. I am really looking for a solid accountant right now. Most accountant i spoke either have no clue about my industry or they pretend to be that way. Most accountant gave me all sorta weird info.

I would appreciate, if anyone can recommend a good accountant for a sole prop,

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Postby Mad Scientist » Thu, 27 Jan 2011 6:34 am

Godmode wrote:Scientist, you missed the LLP, which is the limited liability partnership where liability is divided amongst the 2 partners. If u have more than 2 partners, you can only register a pte. ltd.

The tax break of $100K and then 50% of next 200K, is applicable only to pte. ltd companies which private ltd and not for sole props and LLC.



It is No.2. then . Partnership can be from 2 to any numbers. It does not have to be for only 2 partners. However LLP as you said, if there is any default on bank loan or any contractual agreement between you and the buyer/seller which the other party can be proof that you have malicious intent to deceit be it in tort, contract, express or otherwise, the liabilities goes all the way to your own personal wealth. This is similar to sole proprietorship.
In Pte Ltd, the liabilities is limited to the company only. Having said that the company/person in disgruntle with you can take personal litigation to proof otherwise.
If you have an authorise capital of $100K and a paid of $2 in a pte ltd, no many will do business with you esp if you are after gahmen contract..

BTW let me know what industry you are in and I can recommend you the accountant. Are you after an accountant or auditor albeit CPA?
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Postby Godmode » Sat, 29 Jan 2011 5:17 am

am into internet marketing so can you recommend someone who understands it well. Also consider that i manage a multi-currency a/c

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Postby Mad Scientist » Sun, 30 Jan 2011 9:39 am

Godmode wrote:am into internet marketing so can you recommend someone who understands it well. Also consider that i manage a multi-currency a/c


Nothing special on multi currency a/c as most companies do.
I had seven currencies in four countries to manage before.

I used this company before ACT Management Services Pte Ld
100 Beach Road #25-06 Shaw Towers Singapore 189702
Tel : 629511128 Fax: 6296 9945

Not sure the e-mail

Look for Jasmine Chia . She is the Executive Director
Talk to her . She should be able to help. No need to use my name. Not sure if she is still there. They are reliable and not dodgy
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Postby Godmode » Wed, 09 Feb 2011 3:03 am

thanks MS. Sorry was away so didnt check your post.

will call them tommorow and see how they can work on my case.


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