An Annual General Meeting (AGM) is a mandatory meeting for all companies. The requirement is for companies to hold an AGM within 6 months from the end of their financial year. At the AGM, the directors of the company will present an annual report of the company, typically the financial statements, to the shareholders. This [...]
A shareholder is a natural person or a legal entity (i.e. another company) that owns at least one share of a company. They may also be referred to as stockholders or equity holders. Some people may refer to them as owners of the company. A company requires investment in the form of an injection of [...]
The winding up or liquidation of a company is a process whereby the assets of a company are sold and the monies collected are used to pay off its debts. After all its creditors are paid off, any remaining monies can then be distributed to the shareholders of the company. When this process is completed, [...]
An Employee Stock Option Plan (ESOP) is a form of Employee Share Ownership. An Employee Stock Option Plan gives employees the right to purchase shares of the company at a predetermined price within a particular time frame. There are a variety of reasons for implementing an ESOP in a company. An ESOP may be used [...]
A sole proprietorship is a business that is owned by an individual. There are no other individuals involved in this business. The three characteristics that define a sole proprietorship are: 1) It is not a separate legal entity from the business owner When dealing with a sole proprietorship, it is akin to dealing with the [...]
There are a whole host of reasons why a company structure is a more effective business structure and from time to time, sole proprietors or limited liability partnerships may decide to convert their business structure to a company. There are some pros and cons to converting to a company and these should be well thought [...]
On the 1st of October 2018, the Singapore parliament passed the Variable Capital Companies Act. The act was assented to by the President on the 31st of October 2018. The Variable Capital Companies Act provide for the incorporation, operation and regulation of new corporate entities called Variable Capital Companies. A Variable Capital Company (VCC) has [...]
A Social Enterprise is a typical company. It is basically a normal, typical company which is profit driven and the incorporation process is basically the same as starting a new company because a starting a Social Enterprise is starting a normal, typical company. There is no special SSIC code which companies must place on their [...]
A convertible note is a form of loan to the company which can be paid back in the form of equity. The investor or lender places monies in a company and receives discounted shares which are issued at a later date. This is a very popular instrument in which startups use to raise funds. The [...]
If you were to start a business, namely in Asia, you would inevitably factor in starting it in Singapore, among others. Here are some reasons which may compel you to eventually start your business, and company, in Singapore. 1) Singapore has one of the lowest corporate taxes in the world The corporate tax rate is [...]