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Structure Types of Business Ownerships in Singapore

There are different structure types for business ownership in Singapore. These have different advantages and disadvantages. These structure types include the following:

Structure Types of Business Ownerships in Singapore

Sole proprietorship

These involve a one-person business which means that the business is not a limited liability company or corporation. There are no papers or anything special to set-up this kind of ownership, this only involves the person to create the business themselves. This type of ownership is inseparable to its owner since the owner and the business is the same. Become a sole proprietor of a business means that the owner is liable for any debts or court judgments they might face and they should report their losses and income to their own personal tax return.

Partnership

This involves a partnership for a business that is usually owned by two or more people who is not a limited liability company or a corporation. Like the sole proprietorship, they don’t need to file any paperwork from the partnership and the arrangement starts when the owners start a business with another person. In the partnership, owners pay the taxes on their share of the business’s income on their personal tax returns, each of them are also personally liable for the total amount of the business’s debts and claims.

Limited Partnership

This type of ownership is also complicated and costly to set up and run and it is not recommended for small average business owners. This is because this type of ownership is often created by one company or person, also called the general partner; that will ask for the investments from their limited partners. The general partner controls the day-to-day operations of the limited partners and they are also liable for any debts unless the general partner is a limited liability company or corporation. The limited partners have limited or minimal control on the decisions and operations of the business; however they are not liable for any debts or claims of the business.

Corporations and Limited Liability Companies (LLCs)

In forming this type of ownership, this can become more costly and complicated; however for some small businesses that can handle it can become worth the trouble. These structures help in limiting the personal liabilities in the business debts and court judgments against the business; this is the main benefit of the LLCs and corporations. This is also an independent legal and tax entity that separates the people who own, manage, and control the business. The owners of this corporation don’t use their personal tax return in paying the tax on corporate profits; the corporation pays the taxes itself. The owners only pay the personal income tax with the money they draw from the corporation through bonuses, salaries, and others.

Non-Profit Corporations

These types of ownership are usually formed to carry out any charitable, religious, literary, scientific, or educational purpose. They raise their funds through solicitations in public and private money grants and donations from companies and other people.

Real Estate Law and what’s in it

Real estate laws vary from one country or state to another. In Singapore, it is regulated by the government and it may be changed as necessary. When buying a property from the real estate industry, you must be able to be knowledgeable of these laws and keep yourself updated about them so that you won’t be able to encounter various problems that pertain to its ownership.

What the Real Estate Law is about

• Real Estate Property

Rules and regulations governing real estate property are sated in Singapore’s real estate law. It stipulates how the property should be used, bought, and sold accordingly. It will state the definitions of the terms you will encounter as you go along through the various articles found in the act. It will illustrate the procedures on the buying and selling of the property. Licenses and certification procedures will also be stated for those who are real estate agents and brokers.

• Usage of Property and Contracts

The contracts used in real estate and the manner in which the property is used are stipulated in the real estate law. These things will be advised to you by real estate attorneys as you buy or sell a property. This ensures the efficiency of the transactions wherein an agreement shall be arrived at before the final transactions are done. Attorneys are responsible for notarizing contracts and tracking down the titles of the property, as well as information that neither of the parties is aware of. They serve as a guide from the beginning up to the end of the transaction making sure everybody’s getting their part of the bargain. Attorneys are also the ones who will provide information about insurances, property taxes, and regulations on the property. Basically, they are the ones who will ensure that the transactions of their clients are within the boundaries of the law.

Real Estate Law and what’s in it

• Ownership and Relationships

The real estate law serves as a protection for both the tenant and the lessee. It stipulates the ownership and the relationship between the people involved in the transaction. It contains the rights and responsibilities of the landlords and tenants to ensure that there is fairness in their relationship. It regulates the rules of hybrid ownership, such as cooperatives, and establishes guidelines on how businesses can operate. Aside from that, the real estate law also stipulates the circumstances wherein the government will take away the property from the owner. This will be done through a legal process that is also stipulated in the law.