Most companies in Singapore are registered as non-public restricted liability corporations (commonly referred to as non-public limited companies.) A private limited company in Singapore is considered a separate legal entity. This guide supplies a detailed assessment of the requirements, procedure and timeline for registering a private limited company in Singapore. Singapore has a set of initial and ongoing regulatory compliance requirements for starting and operating a company.
Features
- A legal entity separate and distinct from its shareholders and directors
- Partners have limited liability
- It can sue or be sued in its own name
- It can own property
- A minimum of 1 and a maximum of 50 shareholders
- A newly startup Private Limited Company is eligible for local tax exemptions and incentives
Advantages
- Shareholders not personally liable for debts and losses of company.
- Profits taxed at corporate tax rates.
- Newly incorporated companies are entitled to tax incentives and exemptions.
- The company, as a separate legal entity, does not cease to exist if one or more of its shareholders die.
- Ownership of a company can be transferred and additional shareholders can be appointed.
- Shareholders’ personal assets are protected since they are not personally liable for debts and losses of company.
- Ownership is transferable and additional shareholders can be appointed thus enabling additional capital injection for expansion purposes.
- Conveys a professional commitment and vision hence maximizes the potential of loans from banks and other fi nancial instituions and also establishes a credible image among the business community.
- Company is perpetual and business operations are undisturbed by changes in shareholders or the holding pattern.
Disadvantages
- It is governed by rules and regulations stipulated in the Singapore Companies Act. Violation of rules and regulation will result in penalties.
- Annual returns filing and Directors’ Report are required; must have at least one director and one company secretary.
- Greater disclosure and administration requirements, and therefore operation costs are generally higher.
- Directors must disclose to the company information about their interests in the company’s shares, contracts and debentures.
- Companies can be more expensive to set up.
- Companies must maintain ongoing compliance with ACRA/IRAS
Summary of Setup Requirements for Singapore Private Limited Company
- Minimum 1 Shareholder + 1 Resident Director + 1 Company Secretary
- Minimum initial paid-up capital is S$1
- A Singapore registered office address
Approval and Renewal Information
Rikvin can help you register a Singapore company with ACRA within one hour provided all required documents are in place. Once approved, ACRA sends out a confirmation of registration via email. The registration is valid for one year and subject to an annual renewal.
Notes
If you are a Singapore resident and you want to set up a company, you will need to do the following:
- Engage Rikvin to incorporate a Singapore Private Limited Company.
- Engage a Company Secretary through Rikvin’s Company Secretary Service. A Company Secretary is required in accordance with the Singapore Companies Act.
Related Topics
Singapore Private Limited Company Guide
Singapore Personal Income Tax
Post Incorporation Consideration
