Private Limited Company
A Private Limited Company is the most popular form of business structure in Singapore for both foreign and local companies. This is largely due to the flexibility offered to business owners. Foreigners can operate a Private Limited Company as a 100% foreign owned entity and also enjoy relaxed tax responsibilities.
What is a Private Limited Company in Singapore?
Private Limited Companies in Singapore are limited by shares and are therefore considered separate legal and taxable entities. This means that the shareholders are not liable for any debts and losses incurred by the company (beyond the value of any share capital they each own).
Private Limited Companies in Singapore are usually required to have one of the following, “Private Limited”, “Pte Ltd” or “Ltd” as part of their company name.
All companies in Singapore are required to be registered with the Accounting and Corporate Regulatory Authority (ACRA). Failure to register with ACRA means that you cannot operate in Singapore.
The key features of a Private Limited Company are:
- Private Limited companies require a minimum of 1 and a maximum of 50 shareholders.
- The liability of each of the shareholders is limited to the value of their shares.
- Profits are taxed at corporate tax rates and dividends are tax-free for shareholders. Additionally, the tax rate for the first S$300,000 of annual profit is set at 8.5% and 17% thereafter. Additionally, all newly incorporated companies are entitled to tax incentives and exemptions regardless of the type of ownership.
- A popular choice for establishing a presence before expanding/investing in the rest of Asia.
• Foreign ownership
100% foreign ownership is possible.
• Transferable shares
Ownership of the company’s shares can easily be transferred. It is also possible for additional shareholders to be appointed. This ease of transfer offers the company a safeguard in the event of resignation, death or insolvency of shareholders or directors.
• Limited liability
This type of company structure is a standalone legal identity, therefore, shareholders are not liable for the debts and losses incurred by the company.
• Minimum Capital Requirements
Paid-up capital can be as little as S$1
• Business Restrictions
There are some business activities that require a special license:
- Financial services
- Travel agencies
- Educational institutes
- Import & export of goods
- Recruitment agency
• Hiring of Foreign employees
Foreignn employees must obtain an Employment Pass
USD 800 *
5 business days
(Average time from the moment
we receive complete information from you)
* + Government Fees: USD 315
Scope of work
- Assistance in the pre-registration procedures. This includes drafting and filing the Memorandum of Association and registering the company name.
- Prepare and file all registration documents with ACRA. This includes collecting and collating the required documents.
- Compiling the company business profile and relevant post registration compliance.
- Answering questions in relation to the process for setting up a Private Limited Company.
- Advising you on the post registration duties to ensure a smooth business operation.
Additional services that you may need as well
- Corporate secretary
- Registered address
- Bank account opening
- GST registration
- Bookkeeping & tax filings
What is the process for registering a Private Limited Company?
Be prepared for registering your Private Limited Company with our comprehensive and free registration checklist.
Be prepared for registering your Private Limited Company
with our comprehensive and free registration checklist.
Our experts can assist you with the initial steps for registering your Private Limited Company. This includes:
- Identifying the correct company structure that best fits your needs.
- Preparing the company constitution e.g. Articles of Associations
1 to 5 business days
Collecting documents and filing the application
Our team of experts will collect, collate and fill in all the required documents, ready for your signature.
A few days to collect documents from the parties and prepare the application
Registration of the Private Limited Company
Our team of experts will file all the documents and application forms with ACRA.
One day for filing the application
Our experts can assist with you the next necessary steps to start your business:
- Bank account opening
- Setting up the accounting and tax filing system
- Obtaining any relevant business licenses
- Employment pass for the foreign employees
Frequently asked questions
What is the minimum capital to register a company?
Private Limited Companies in Singapore only require 1 SGD of capital for registration purposes. However, if you plan on applying for an Employment Pass, it is highly recommended to have a registered capital in excess of 12x your monthly salary.
How many directors are required in a Private Limited Company?
A Private Limited Company is required to have at least 1 Director. At least one Director must be a citizen or permanent resident of Singapore.
How many shareholders are required in a Private Limited Company?
A Private Limited Company is required to have a minimum of 1 shareholder and a maximum of 50.
How many shareholders are required in a Limited Company?
A Thai Limited company is required to have a minimum of 3 shareholders.
Do I need a Singaporean partner to register a Private Limited Company?
No, Private Limited Companies in Singapore can be 100% foreign owned.
Can I open a corporate bank account and are there any restrictions?
Any registered company in Singapore may open a corporate bank account with internet banking.
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Question Before You Begin? *
(*) This Conversation is intended to provide basic answers to questions you may have about the Private Limited Company. But it is not a Lawyer’s Consultation. Learn more.
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