is it possible to convert sole proprietor to pte ltd?

[Mr Tan]

...any answers.

[sundaymorningstaple]

I could cut & paste or reword it to look like mine but this is easier:

http://www.guidemesingapore.com/incorpo ... ed-company

[Mr Tan]

my LLP is almost 7-8 years old, but it carries no transaction . is there any benefits for a company to be 8 years old or should i just start out a new company ?

[sundaymorningstaple]

So, if your company has never had a transaction, you have basically a shelf company, correct? Therefore, as you have never done business you don't even have any goodwill and the name is unknown in any rate. I think I'd just ditch it and start afresh.

[ausinsg]

The best structure will depend on the type of business you intend to operate.

If you are going to be making a profit in the first three years, then there are benefits to using a new exempt Private Limited company.

You will pay no corporate tax on the first $100k of profit, and a 50% reduction in tax on the next $200k in profit during this honeymoon period.

If you know you have a profitable contract in hand, this can be a nice sweetener.

Why not seek the advice of a lawyer/accountant before you go any further?

[sundaymorningstaple]

Actually, it's a no brainer. A Pte Ltd is better both from a structural POV as well as from a liability POV. A sole proprietorship puts everything you own at risk while the Pte Ltd has a life of it's own and the directors, as long as they haven't done anything illegal, cannot be sued for the company's liabilities.

[Mr Tan]

thanks for the kind advise. i think i just ditched

So, if your company has never had a transaction, you have basically a shelf company, correct? Therefore, as you have never done business you don't even have any goodwill and the name is unknown in any rate. I think I'd just ditch it and start afresh.