Considering many valuable benefits of incorporating a corporate business, especially Private Limited company (written as Pte Ltd company in Singapore), it would be a great idea to convert present proprietorship or partnership business into a Pte Ltd company. This has an easy process and it doesn’t take much time to complete the conversion procedure after initiation of the request.
The decision to convert a business into Pte Ltd company
The conversion to a Pte Ltd company is a wise decision. The conversion offers better liability protection and versatility for prosperity. However, the decision may be taken after considering the pros and cons of the matter.
Before initiating the process, it is necessary to make a list of questions that may impact the decision and to find the answer to these questions to ensure that the decision to covert goes in the right direction. The requirements and procedure of conversion should be explicit from every perspective because there will be no option to retract once the company is incorporated.
A Pte Ltd company is a legal entity registered under the Singapore Companies Act and derives benefits laid down under its provisions. The only option is to dissolve or strike-off the company, but that would be allowed under certain specific situations under the provisions of the Accounting and Corporate Regulatory Authority (ACRA) in Singapore.
If you are a start up and need help in the Singapore incorporation of company, click here for information.
The process to convert to Pte Ltd company
The legal and statutory aspects of conversion from a proprietorship or Limited Liability Partnership (LLP) to a Pte Ltd company in Singapore is comparatively upfront, except the intricacies that may arise because of transferring business matters. The pros are more than the cons.
The process of Convert to Pte Ltd Company is also rather simple and it’s just a three-step process once the business owners submit their intent to covert their existing business into a corporate business which is called as ‘No objection’. The details of incorporation are available on the ACRA official website.
- The business first needs to get approval of its business name as a Pte Ltd company because no two legal entities have the same name.
- The application can be made after approval, along with an undertaking that old business will cease its operations within three months from the date of incorporation of the company.
- The next step following the incorporation is to transfer all business matters such as assets, bank accounts, contracts and service agreements, and permits and licenses in the name of a company.
- The final step is to terminate the old company and notice of the termination to be issued to the ACRA.
Strike-off a company: requirements
Striking-off means deregistering the company from the register of ACRA which eventually intents that the company will be dissolved, but doesn’t absolve its members and officers of their undischarged liabilities at the time of the strike-off move. The requirements to Strike-Off a Company are available on the official website of the ACRA.
There is no filing fee for strike -off application that may be submitted online by the majority of company directors, the company secretary or the registered filing agent. However, the criteria laid down by the ACRA for strike-off must be fulfilled.
Objections to the striking off application may be made within the specified periods without a filing fee. The application may also be retracted anytime before the action has been taken.