The most common business structures available at your perusal are:
An S corporation (sometimes referred to as an S Corp) is a special type of corporation, created through an IRS tax election. An eligible domestic corporation can avoid double taxation (once to the corporation and again to the shareholders) by electing to be treated as an S corporation.
A C corporation, under United States federal income tax law, refers to any corporation that is taxed separately from its owners. A C corporation is distinguished from an S corporation, which generally is not taxed separately.
A C Corp takes some time and efforts in order to start the business.Articles of incorporation must be drawn up and filed with the Secretary of State, along with the necessary fees. Bylaws have to be written and must follow certain guidelines. Officers have to be named and a board of directors has to be elected. These requirements are meant to keep ownership of the corporation separate from the corporation itself.
The liability of the officers of a C-Corp are same as that of a private limited company in India,i.e.limited liability. This means that the personal property of the officers cannot be attached to satisfy the claims of the third parties.
In an S Corp, a shareholder or owner reports corporate income on his/her personal income tax returns. ITo Qualify for S-Corp Status, a Corporation:
LLC is somewhat similar to the Limited Liability Partnership (LLP) of India. A limited liability company (LLC) is a hybrid of a partnership and a corporation. The main benefit is, as the name suggests, limiting liability of the owners. The other advantage is that profits are taxed as personal income, and this is usually lower than what corporations pay.
There is no corporate tax burden on LLC.Profits flow through to the owners and are taxed at the personal income tax rate. The LLC does file a yearly form with the IRS, but it is for informational purposes only. It is used by the IRS to determine if the owners are paying the correct amount of personal income tax.
First and foremost, you need to know that you would be considered as a foreign national there. Moreover, Singapore law does not allow foreign individuals or entities to self-register a company. Hence,either you would have to appoint a professional firm over there for this purpose or you would have to engage an Indian expert firm who would get this done through tie ups. Considering the hassle and complexities of legal provisions, it is always advisable to opt for the second option.This would not only help you from the control perspective but would also help in understanding the processes better.
Taxmantra is tied up with a number of expert and budget firms for this purpose and has been helping start-ups to get the best possible solution to their requirements at affordable prices.
You would be required to obtain an Employment Pass or Entrepreneur Pass if you plan to relocate to Singapore to operate your company.Once you have obtained your work permit, you can act as the local resident director of your company.
The Entrepreneur Pass or EntrePass scheme has been designed for foreign entrepreneurs who wish to start a business and relocate to Singapore.An application for EntrePass can be made before incorporating the Singapore company. Once the pass is approved, you will generally be given 30 days to incorporate the proposed company.This Pass holders are eligible to apply for permanent residence in Singapore in due course of time.
Employment Pass (EP) is a type of work visa issued to foreign professional employees, managers, and owners/directors of Singapore companies.The current salary threshold for the Employment Pass is S$3,300 a month.
Generally, the following documents are required for this:
A company usually gets incorporated in 2-3 business days.
The rules are somewhat similar to that of MCA naming guidelines, though less stringent.Following few criteria should be kept in mind before applying for the name:
The name should NOT:
Merely few hours.
The name is valid for a period of 60 days from the date of application. However,before the expiry of the said period, the validity can be extended for another 60 days by filing an extension request.
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