An incorporated Private Limited Company in Singapore is the most popular business entity available through ACRA.
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 2 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
- A company’s life is usually perpetual
- Ownership of a company can be transferred and additional shareholders can be appointed
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.
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 your 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 your 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 Personal Income Tax
Post Incorporation Consideration
Singapore Compliance Matters
