Expand Your Business: Incorporate a Singapore Private Limited Company

Jul 10, 2014
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Incorporate-Singapore“Hit the iron when it is hot,” is a sound advice for anyone who wants to start a Singapore private limited company. The saying is good enough to emphasize taking advantage of favorable conditions in Singapore. The investors, entrepreneurs and corporate eyeing Singapore market and debating with themselves whether or not to setup a Singapore Company, must pay heed to the saying.

Who can Form a Singapore Company as a Private Limited Company?

Singapore citizens, permanent residents as well as foreigners can form a private limited company in Singapore. In fact, it is the most used business structure for Singapore company registrations.

Private Limited Company or an Exempt Private Limited Company

Singaporeans have two options for starting a company in Singapore; they can incorporate a private limited company or an exempt private limited company. The truth is that after opening of Singapore economy many Singaporean businesses converted themselves to the latter form.

A Private Limited Company as a Subsidiary Company

A foreign entity can incorporate a private limited company as a subsidiary company in Singapore to get established in this market. A subsidiary company with a foreign parent company is separate entity from its parent. It is responsible for its own losses and debts and is taxed according to Singapore rules and regulations.

Requirements for Registering a Private Limited Company in Singapore

  • Minimum paid-up share capital required is 1S$
  • The number of shareholders is in range of 1 – 50
  • At least one company secretary
  • At least one local nominee director
  • A permanent business address for the office
  • In case of Exempt Private Limited Company, the number of shareholders is in range of 1 – 20

Advantage of a Singapore Private Limited Company

Singapore private limited company is one of the powerful business structures to conduct business activities.

  1. This business structure is pro-business in the sense that it offers limited liability to its shareholders and directors.
  2. As this company is limited by shares, its debts and losses are its own. Personal properties of shareholders and directors are not pledged for it.
  3. Raising capital for its expansion is relatively easy.
  4. A private limited company has independent legal identity.
  5. It has the rights of a natural person and has perpetual succession.
  6. A foreign corporate entity can own 100% percent of its shares. All these factors make it a favorable company for investors.

The government of Singapore is offering incentives and tax benefits to the new business incorporations in Singapore. So this is the right time to form a private limited company in Singapore and start making profit.