Company Law
Question 1
All business organizations in Singapore with the intent of profit generation are categorized under two main types of corporations, either unincorporated or incorporated. The law treats each entity differently.
Unincorporated Entities
Unlike the incorporated entities, an unincorporated entity business does not have separate legal personality. The law does not separate the people who establish the business and the business itself. In other words, the rights and liabilities of the unincorporated entity are treated as thou the rights and liabilities of the owner. In Singapore, the three most common types of unincorporated entities are: sole proprietorship, partnership and joint venture.
Incorporated Entities
Through incorporation, a business entity will becomes a separate legal body. Being a legal body, it has its own share of legal rights and obligations, the rights and obligation of a company is not equivalent of that to its members. This is to say, if the founder of a company retired or leave the corporation, it will still continue to exist. Traditionally, the law only recognizes nature persons in the position of enjoying rights and owing obligations. However by the process of incorporation, the law recognizes an artificial entity to be capable of having legal rights and obligations.
Difference in Legal Entities: Unincorporated and Incorporated Entities
Unincorporated Entities
Sole proprietorship
A sole proprietorship is basically a business entity owned by a single person. In accordance to s 5(1) BRA, a sole proprietor only need to register the business name with Registrar of Business (BRA), which is part of Accounting and Corporate Regulatory Authority); in return receive a certificate of registration of a business.
Sole proprietorship is an unincorporated business entity with unlimited liability and full business responsibilities, rights and obligations borne to the sole proprietor. Hence, if a sole proprietor business fails, it would
All business organizations in Singapore with the intent of profit generation are categorized under two main types of corporations, either unincorporated or incorporated. The law treats each entity differently.
Unincorporated Entities
Unlike the incorporated entities, an unincorporated entity business does not have separate legal personality. The law does not separate the people who establish the business and the business itself. In other words, the rights and liabilities of the unincorporated entity are treated as thou the rights and liabilities of the owner. In Singapore, the three most common types of unincorporated entities are: sole proprietorship, partnership and joint venture.
Incorporated Entities
Through incorporation, a business entity will becomes a separate legal body. Being a legal body, it has its own share of legal rights and obligations, the rights and obligation of a company is not equivalent of that to its members. This is to say, if the founder of a company retired or leave the corporation, it will still continue to exist. Traditionally, the law only recognizes nature persons in the position of enjoying rights and owing obligations. However by the process of incorporation, the law recognizes an artificial entity to be capable of having legal rights and obligations.
Difference in Legal Entities: Unincorporated and Incorporated Entities
Unincorporated Entities
Sole proprietorship
A sole proprietorship is basically a business entity owned by a single person. In accordance to s 5(1) BRA, a sole proprietor only need to register the business name with Registrar of Business (BRA), which is part of Accounting and Corporate Regulatory Authority); in return receive a certificate of registration of a business.
Sole proprietorship is an unincorporated business entity with unlimited liability and full business responsibilities, rights and obligations borne to the sole proprietor. Hence, if a sole proprietor business fails, it would