Every business should have plans to succeed. However, business owners do not take time to know the legal aspects of running a business venture, which is a significant aspect of company incorporation. Business owners can easily get lots in their excitement to make their company profile, design a strategic marketing plan, and run their business’ financial expectations. However, before you do, ensure you are familiar with the legalities involved in operating a business. Before starting your company incorporation, keep the following in mind:
Seek Professional Advice
Although you already have a business plan that will give direction for your business and get the attention of investors, you want to ensure your plan abides by the local rules and regulations. Take time to meet with a professional Chartered Secretary to talk about what you must do for your company incorporation in Singapore. The Chartered Secretary should be able to help you determine the right business structure for your company. Also, they can draft and review contracts, as well as negotiate for you.
The best time to seek professional advice is before establishing it. You must not wait until you already have an approved business name before you consider legal concerns associated with your company. It is important to be equipped with legal information regarding your company incorporation to save you from potential legal issues in the future.
Think about Personal Assets
In a partnership form of business, all partners are accountable for the risks, losses, and debts that a company is likely to accrue. Thus, your personal assets may be put at risk in case your company faces a legal issue. Make sure you prepare for this if you want your business structure to be a partnership.
But, you can also consider other options like Limited Partnership (LP) and Limited Liability Partnership (LLP). Such partnership limits the personal liability every business owner may face. To help you choose the best structure for your company, consult ACHI BIZ, an incorporation service company in Singapore.
Put Everything in Writing
No matter the scale or size of your business, ensure you keep all agreements in writing. Aside from being a reference for shareholders, proper documentation is required by the Accounting and Corporate Regulatory Authority (ACRA). Also, corporate records can be useful references in case of a misunderstanding among partners.
Know What your Rights and Responsibilities Are
Running a business with some partners should involve understanding your duties. Every member must define how much capital they will contribute and have a plan in place in case a partner or shareholder decides to leave the business.