A Beginner’s Guide On Company Incorporation And How Corporate Secretarial Services Can Help
Do you know that as of November 2022, there are 411 unicorns in the Asia Pacific? So, if you are planning to start a business in this region, stand out from the competition and make a mark, you have to be strategic and follow the appropriate procedures. Every entrepreneur should know about company incorporation and the importance of outsourcing incorporation to experts who provide holistic corporate secretarial services.
In this article, let us unpack company incorporation and everything you must know about it.
What is company incorporation?
First things first, what is company incorporation?
Creating a legal entity—a corporation—that is distinct from the owner’s legal identity is known as company incorporation. Doing business or engaging in trade can be established everywhere. Through incorporation as a separate entity, businesses can expand globally, establish themselves and start trading.
Be it a big enterprise or small business, company incorporation is a must for all. If you are a small business, read this article where we deep dive into incorporation for startups and SMEs.
Why is it necessary to go for company incorporation?
There are many benefits of company incorporation. Let us take a closer look at some of the main advantages of company registration:
- Better liability management: To operate a business, you do not need to incorporate. However, if you don’t, your company is automatically a “sole proprietorship,” which means that you are entering into agreements and conducting business as an individual. As a sole owner, you will be held responsible for any business-related agreements and obligations resulting in your own suffering. You and your partners agree to share personal liability for all aspects of the business if you form a general partnership without first incorporating.
The majority of legal entities shield you from personal accountability by being formally distinct from you. Once your company has been incorporated, the legal entity can negotiate contracts on its behalf rather than you doing so. Incorporated businesses can also hold assets, generate revenue, amass debts, file and respond to lawsuits, and declare bankruptcy. In most cases, if there is an issue with your business, no one can seize your assets.
- Save money on taxes and raise money efficiently: Most corporate structures offer some tax advantages, helping businesses save money. Another advantage of company incorporation is that generally, corporate ownership is transferable. So, the sale of stock simplifies the process to raise capital. Plus, many banks favor managing loans from customers who have formed corporations.
- A hassle-free process with the right help from experts: Most markets in APAC offer great ease of business. For instance, a foreigner is permitted to own 100% of the equity of a company with Singaporean incorporation in Singapore. No local shareholders or partners are required. As a result, you can establish a business with the capital structure of your choice and divide ownership according to your investment requirements. You should know that Singapore has one of the most business-friendly regulatory frameworks in the world, according to the World Bank. Check out our Singapore incorporation checklist for more information.
In Hong Kong, a professional service company can help a business incorporate remotely. An E-registration with the Hong Kong Business Registry (CR) for a company structure with individuals can be completed in a minimum of one day or even an hour. The incorporation documents are delivered in hard copy a week later. Even in Malaysia, there are no restrictions on foreign ownership of shares. Foreigners can fully control all businesses in Malaysia.
Company incorporation is easy in most countries across the region, especially with the help of outsourced corporate secretarial services, plus it comes with multiple benefits. So, there is no reason to not incorporate it when launching a new business.
How corporate secretarial services can help with company incorporation
Local regulations for company incorporation in many markets are lengthy and complex and frequently riddled with possible problems or mistakes that might cost businesses when they’re most susceptible. Businesses often get their incorporation applications denied or have to spend a lot of money applying again.
Therefore, hiring external corporate secretarial services for company incorporation would guarantee a quick and easy process. Remember, startups fail in about 90% of cases. 10% of new businesses fail in the first year. One of the worst mistakes you can make is not asking for assistance or opting not to outsource accounting services. You are in charge of starting a new company from the ground up and must manage a multitude of tasks. You can’t complete every task by yourself. Ask for assistance where you know you need it.
To help SMEs and other businesses swiftly and successfully form their company, corporate service provider PikoHANA comes in. We have decades of experience and expertise in different markets across the region, including Hong Kong, Singapore, Malaysia, and beyond
Discover more about how PikoHANA can benefit your company right now!