If you're thinking of starting a company, you might be asking yourself whether it is worth incorporating? There are many benefits of incorporating your business, but it's all down to your personal preferences as to whether you'd like to pursue it or not. The main benefit of incorporating a company is the lower tax rate which you'll need to pay.
The tax rate generally is less than an individual tax rate, and the corporation is taxed on a separate basis from its owners. There is a possibility that your business has to earn a certain amount to qualify for the tax reduction, this is something to keep in your mind. If you incorporate company in Singapore, you are more likely to access Capital.
They generally can borrow money through banks or other institutions for less cost. This is because it's thought to be less of a risk than lending money to other types of companies. Corporate entities also benefit from the advantages of being able to raise funds much more quickly than other kinds of companies, which need to depend entirely on their own cash.
The shareholders of a corporation can profit from this method. Liability is limited in a corporation so shareholders are not held responsible for things such as the company's debts. The investment that they made when the company was formed is protected and they cannot be sued by Creditors if the business should go bankrupt.