A Limited (LTD) company is a business form which is a legal entity separate and distinct from its shareholders and directors. It can sue or be sued in its own name, can own property in the company’s name and the members not personally liable for the debts and losses of the company.
There’re three types of Limited Companies in Singapore:
- Private Limited Company
This is a Singapore-incorporated company where the maximum number of shareholders is limited to 50. A private company is one whose memorandum or articles of association (MAA) restricts the right of its members to transfer their shares in the company.
- Public Company Limited by Shares
This is a Singapore-incorporated company where the number of shareholders can be more than 50. Public companies may/may not be listed on a stock exchange. Where they are listed, they are usually referred to as “listed companies”. The company may raise capital by offering shares and debentures to the public. A public company must register a prospectus with Monetary Authority of Singapore (MAS) before making any public offering of shares and debentures.
- Public Company Limited by Guarantee
This is a Singapore-incorporated company which carries out non-profit activities with national or public interest, such as promotion of art/charity. The Minister may approve the registration of the company without the addition of the word “Limited” or “Berhad” to its name.
To learn more about Limited companies in Singapore, please refer to our Singapore Private Limited Company Registration Guide.