FREQUENTLY ASKED QUESTIONS
What’s the difference between general partnership and a Limited Liability Partnership/LLP?
While an LLP gives partners the ability to retain a partnership’s flexibility, it is not regulated by the same legal principles used to govern partnerships. Not to mention, an LLP is supposed to report its financial status of solvency or insolvency every year as compared to a partnership. Furthermore, there are provisions in the law that aid in the governance of the winding up of LLP’s to ensure that the creditors are protected.
Partners involved in an LLP also have limited liability considering LLP’s can’t be terminated as effortlessly as a general partnership. Still, seeing it’s a novel concept, potential business partners, and financial institutions are not as ecstatic about joining an LLP compared to a general partnership. Not to mention, there are constitutional restrictions in place such as sections 33 and 37 of the LLP Act regarding their management.
However, an LLP still has its advantages and is often a better alternative compared to general partnership. This fact does not mean that general partnerships don’t have their benefits. As such, companies are advised to scrutinize their pros and cons to find the one that best suits their ideas and mission. You can find the LLP Act here; http://statutes.agc.gov.sg/.
What is the difference between a company and a business?
Here are four significant differences between a company and a business:
1. A company is harder to close for whatever reason compared to a business.
2. A company is required to submit audited accounts to ACRA on a yearly basis as opposed to a business which doesn’t have the same obligation.
3. Businesses are easier to register with the registration fee set at $65 while companies require a higher amount ($315).
4. A business also has unlimited liabilities and as such the owners can be held accountable for losses or mismanagement by investors and sued personally instead of as a business entity by creditors. On the other hand, companies have limited liability and creditors can only sue the institution as opposed to its shareholders or directors.
What is issued Capital?
Issued capital is the number of resources that have been allocated to investors.
How do I know if a company named xxx can be approved?
Our company can crosscheck the name you intend to use and notify you if it is or is not available for registration.
What is the difference between exempt or deemed exempt private company and gazetted private company?
Deemed exempt private or exempt companies refer to any excepted private company with no more than 20 members and none is supposed to be corporate. However, that status is merely a regulation and is not conferred. On the other hand, gazetted exempt private companies are owned by the government and require a minister’s Gazette to achieve this status.
When should my company hold its annual general meeting?
Companies should hold their first AGM after 18 months of their incorporation. AGM’s should not exceed an interval of 15 months.
Must a company appoint an auditor?
All companies should appoint an auditor apart from those exempted from auditing under the Companies Act.
What is paid up capital?
This term refers to the issued capital paid up by stakeholders.
What is a business profile?
This term refers to the computer-generated document containing all the relevant data regarding a company. They are often used for identification or opening up banks accounts and cost $5.50 per report.