Step-by-Step Guide to Company Registration Singapore
For many freelance violin teachers in Singapore, going through the process of company registration Singapore is an important question. Do I need to go through the process of company formation Singapore to become a freelance violin teacher? If you are a foreigner teaching violin lessons in Singapore, you might have thought: do I need to go through the daunting process of foreign company setup in Singapore?
In Singapore, there are many options for both local citizens and foreigners can choose from. You could set up a sole proprietorship, a partnership and even a private limited company! For freelance violin teacher, it is usually advisable to start a sole proprietorship (for one person) and a partnership (if you are working together with one more violin teachers).
As the process of company formation Singapore is not taught in school and unfamiliar with many freelancers and entrepreneurs, this article will go through the process of company incorporation Singapore of a limited partnership! An early disclaimer – those interested in foreign company setup in Singapore will need to find a professional company providing company registration Singapore services. Unfortunately, as per government laws and regulations, foreigners are not allowed to undergo the process of foreign company setup in Singapore themselves.
Limited Partnership (LP)
A limited partnership requires at least 2 violin teachers as partners, and it has no limit on the number of violin teachers, or partners, that it can have. However, company registration Singapore is required to have at least one general partner and one limited partner. Similarly to Sole-Proprietorship and General Partnership, legally, there is no distinction between the violin teachers, as partners, and the business or violin school itself.
However, one violin teacher has to be appointed as the general partner. The general partner(s) is responsible for making decision in the LP after the process of company formation Singapore, and he/she will be personally liable for all debts and losses occurred in the course of business. The partner(s) can also be sued and have his or her personal finances be personally at risk,. As for limited partners, they will not be held liable all the company’s losses and debts beyond his/her agreed contribution as stated in the partner agreement provided that he/she is not part of the management team in the LP. This has to be stated clearly during the process of company incorporation Singapore.
Taxation:
All profits are taxable and taxes vary depending on the individual person’s income tax bracket.
Registration Requirements:
It is required to appoint one violin teacher as the general partner, and one limited partner. Before starting the process of company formation Singapore, note that all the partners (i.e. violin teachers) in the Limited Partnership have to be at least 18 years of age. Undischarged bankrupts are not qualified to manage or set up the business unless they have received approval and a green light from the Court or the Official Assignee. Only a Singapore Citizen, Singapore PR (Permanent Resident) or EntrePass holder is eligible to apply. Foreign violin teachers will have to go through the process of foreign company setup in Singapore and engage in a local company formation Singapore firm.
For a violin teacher that is a Non-Singapore Resident, he or she would have to appoint an authorised representative who is an ordinarily local resident. It is also compulsory for foreign violin teachers to engage the services of a Singapore company incorporation Singapore provider in order to set up a LP and go through the process of foreign company setup in Singapore. For more information regarding the process of foreign company setup in Singapore, contact a local company formation Singapore services provider for a free consultation.
Continuity:
The LP will exist and remain registered with ACRA, as long as its business license is renewed and the business follows Singapore’s rules and regulations. However, prior to new company registration Singapore and/or renewal, the MediSave account must be topped up or the application will be rejected. The LP at any time has to have at least one general partner and one limited partner, should the LP at any time does not have either of the mentioned partner, the company registration Singapore process will be suspended until it fulfills the criteria.
Termination of business license can be done by the general partner.
Become a Freelance Violin Teacher
While it is not possible to go through the process to incorporate every entity type in one article, this article should give any freelance violin teacher a clearer picture and understanding of the step-by-step process of company incorporation Singapore of a limited partnership.
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