Singapore has become a key economy in Asia and many finance houses and banks are coming to Singapore to take advantage of the growth in South East Asia. The underpinning of every financial centre is a good legal infrastructure and Singapore has been ranked very highly worldwide in terms of its legal standing and as a result Singapore Legal Services have become quite in demand worldwide.
Most people ask me why engage a lawyer in Asia? They frown on legal services as a cost of goods sold and wonder why they should spend on a cost item when they should be focused on revenue. If you intend that your business remains a small trading business, then your legal liability and risk would remain small. However, for larger companies in Asia and in Singapore, legal risk rises as your companies trading activities increase. Thus to ensure that you will be paid when you sign a contract, you need to examine Singapore legal services more seriously. Engaging a corporate lawyer to review and draft your distributorship contracts, franchise contracts and other commercial contracts early will save you much headache later if you want to be paid by your customers or have recourse not to pay your suppliers for shoddy work.
What are some types of Singapore legal services that you may need:
- If you are trading company, engage a Singapore law firm to review your distribution contracts and consultancy contracts and employment contracts with your existing employees. Many companies draft contracts which have an earn out structure, where for key employees, the more gross revenue/ profit that a company makes, the better the remuneration for those key employees.
- If you intend to enter into a franchising agreement, you should engage a proper corporate lawyer to review your agreement as this contract is intended to govern how your Singapore business operates for a number of years and you want to know the rules of the game so as to speak.
- If you are intending to enter into a joint venture or corporate co-operation type of arrangement, engaging a corporate lawyer to draft a proper joint venture agreement is key to minimize legal conflicts later. Having a proper exit mechanism in such agreements is key so that each party knows how he can exit and what valuation such exit would be based on.
A properly drafted corporate contract between the contracting parties can save you a lot of heart ache later and would be important if you intend to grow your company/business large.
Do contact us if you wish to engage us for Singapore legal services.