Singapore Private Limited Company
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The document outlines the advantages and disadvantages of forming a private limited company in Singapore, highlighting shareholder protection, easy ownership transfer, and a professional image as benefits, while noting setup costs and regulatory compliance as downsides. It differentiates between various types of companies such as private limited and public companies and details requirements for start-up tax exemption. Additionally, it provides a checklist for company incorporation, including necessary approvals, director and shareholder requirements, paid-up capital, registered address, and necessary documents.
Singapore Private Limited Company
- 1. SINGAPORE PRIVATE LIMITED COMPANY
- 2. Copyright © 2014 Rikvin Pte LtdLast updated on 5 November 2014 SINGAPORE PRIVATE LIMITED COMPANY Advantages: • The Shareholders’ personal assets are protected and they are not personally liable for any debts and losses of company. • Ownership is transferable and additional shareholders can be appointed at any time, thus, enabling additional capital injection easily. • Conveys a professional commitment and vision, hence maximizes the potential of loans from banks and other financial institutions and also establishes a credible image among the business community. • The Company is perpetual and business operations are undisturbed by changes in shareholders or the holding pattern. Disadvantages: • Companies can be more expensive to set up • Companies are governed by tighter rules and regulations • Liquidation or winding up can be more difficult and costly • Companies must maintain ongoing compliance with ACRA/IRAS There are four types of companies in Singapore: Private Limited Company - Not more than 50 corporate or individual shareholders. Exempt Private Company - Not more than 20 individual shareholders. Public Company Limited by Shares - It is locally incorporated where the number of shareholders can be more than 50. Public Company Limited by Guarantee - It is one that carries out non- profit making activities that have some basis of national or public interest, such as for promoting art, charity etc. To qualify for Start-up Tax Exemption (SUTE): • Must have no more than 20 individual shareholders • For corporate shareholders, one individual must hold at least 10% of the issued shares • Property and investment holding companies are not eligible
- 3. Copyright © 2014 Rikvin Pte LtdLast updated on 5 November 2014 CHECKLIST FOR SINGAPORE COMPANY INCORPORATION Once you have decided to incorporate a Singapore company, the following details will help you understand the key requirements and the overall incorporation process. Items Description Company Name Approval • The proposed company name of your Singapore company can be in any language with Roman characters. • Company name ending can only have permitted suffixes. Directors • Minimum of one director (directors can only be individuals) is required. There should be at least one local resident director. • Any further number of non-resident directors (of any nationality) can be appointed. • We also offer nominee resident director service at an additional fee. Shareholders • A minimum of one shareholder is required. • A director and shareholder can be the same or different person. • A shareholder can be an individual or corporate body. • There is no limit on number of shareholders for public companies. For private companies, a maximum of 50 shareholders is allowed (excluding employees or ex-employees). Company Secretary • Company secretary shall be an individual who is locally resident. • If the company has only one director, he can not act as the company secretary. • We can act as the company secretary for Singapore companies we incorporate. Paid-up Capital • Minimum capital: One share in any currency. • Maximum share capital: Unlimited. Registered Address • All Singapore companies must have a local registered office address. • We can provide you a registered office address in Singapore. Documents Required • Passport copies of proposed shareholders and directors. • Residential address proof of proposed shareholders and directors. • Details/documents of the parent company if the shareholder is a corporate entity. Bank Account Opening • We will assist you by introducing you to bank offices for bank account opening for your Singapore company.