Singapore Company Incorporation: Registering a Singapore Private Limited Company

The private limited company is the most common type of company that is incorporated

in Singapore as it provides countless of benefits to both local and foreign businessmen especially in terms of taxation, limited liability, and bankruptcy protection.

One of the most notable features of a Singapore private limited company is that it exists as a separate legal entity from its shareholders which means that they are not personally liable for the company's debts, losses, and liabilities.

Tax Benefits and Advantages

Newly incorporated companies, regardless if these are owned by local or foreign shareholders, enjoy zero tax on their first S$100,000 chargeable income and another 50 percent tax exemption on their next S$200,000 within three years of their registration.

Meanwhile foreign companies can also enjoy such tax benefits if they will register a subsidiary office which is essentially a private limited company which just happens to be owned by foreign shareholders.

(Note: Foreign parent company may be the sole shareholder of its own subsidiary company. However, this business structure is also allowed to have a maximum of 50 shareholders regardless if they are local residents or foreigners.)

Another advantage of a subsidiary company is that it enjoys all the local tax benefits being incorporated in Singapore.

Important Things Before Incorporating a Singapore Company

Company name. Businessmen should apply for the approval of their company name to the Accounting and Corporate Regulatory Authority (ACRA) before incorporating their business.

Shareholders. There should be at least one corporate or individual shareholder. Meanwhile, the Singapore Companies Act allows a maximum of 50 shareholders in a private limited company.

Resident directors. There should be at least one resident director who must have a residential address in the country. This individual may be a local resident or a foreigner who holds Employment Pass, EntrePass, or Dependant Pass. (Note: Directors can also be shareholders too.)

Company secretary. Within six months of incorporation, a company should appoint a qualified secretary who must be a resident in Singapore.

Paid-up capital. The minimum paid-up capital or share capital is S$1 which may be increased anytime after incorporating a company.

Registered address. A company should have a registered office address in Singapore which must be a "physical" address and not a PO Box.

Memorandum and articles of association. A company should apply for this which will state its nature of business and the rules governing its internal management.

Singapore Company Incorporation: Registering a Singapore Private Limited Company

By: Diane Paz

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