FAQs on Shareholders

A shareholder can be an individual or a company (commonly known as a corporate shareholder) who owns a share or multiple shares of the company. A company can be owned by multiple individuals or a single corporate shareholder. To be considered a shareholder, you must own at least one share of the company. Shareholders (often referred to as, “the members”) are the actual owners of the company. The minimum number of shareholders is one; the maximum number of shareholders is twenty in the case of an exempt private limited company.

Singapore Companies Act allows local and foreign Corporate and Individual shareholders to own 100% of Singapore companies.

Yes, Singapore companies Act allows a minimum of one individual or corporate shareholder. A Singapore Company may be registered with only one shareholder who can be an individual or a corporation.

Singapore has no restrictions on foreign individual or corporate shareholder owning 100% of the company.

No, shareholders are not the employees, but are the owners of the company.

The task of running the company is given to the Managing Director(s). Shareholders can also but not necessarily be the directors of the company.

When you set up a company, you will decide on the number of share capital and its value per share. This is then included in the company’s Memorandum of Association.

This sets out:

• the amount of share capital the company will have
• the division of the share capital
• the founders of the company who will need to sign on the memorandum and state the number of shares subscribed by them

The certificate constitutes proof of share ownership. Persons owning shares in a company are called “shareholders”.

A shareholder is not liable for the debts or other obligations of the company except to the extent of any commitment made to buy shares. The benefits of owning shares include a right to participate in profits (through dividends) and the right to share the residue of assets of the company, once liabilities have been paid off, if it is ever dissolved.

During the year, a company’s board decides whether the business has done well enough to pay the shareholders an interim dividend and at the end of the financial year, the shareholders can pay themselves a final dividend . Dividends can be paid from the company’s profits or reserves. Dividends are paid according to the number of shares held by the shareholders, so the more shares you own, the more money you get. Singapore practices one tier tax system which means shareholders are not taxed on the dividends they receive from Singapore companies.