The different type of Singapore Company incorporation .pdf
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The different type of Singapore
Company incorporation and
which suits you best?
Once you are convinced that you want to
register company in Singapore, it is important
that you know the type of company or business
entity that you want to incorporate, such as Sole
Proprietorship, Partnership, Limited Liability
Partnership, or Limited Partnership.
The decision about the type of company you need
to incorporate is critical as the type of entity you
choose will ultimately determine the key issues such
as the liability of owners, transfer ability of
business, financing and expansion potential of the
business and most importantly the tax and
compliance cost of maintaining the entity.
Here are all the important details about types of
companies in Singapore so that you can choose the
best option that’s applicable in your specific
A Company is a company limited by shares i.e.
its liabilities are limited to the amount of share
capital. A company is incorporated by
registering with Accounting and Corporate
Regulatory Authority (ACRA) of Singapore
under the Companies Act. It is a separate legal
entity, meaning there is a legal veil that
separates owners from the entity. A company
can enter into contracts and own assets. It can
sue and be sued in its own name.
There are 3 types of Company in
Private Limited Company (Pte. Ltd.)
Private limited company incorporation in
Singapore is the choice of many small and
medium size business entities due to several
benefits that it offers.
shareholders are not
responsible for company debt
surpasses share capital contributed.
The company’s shares belong to limited
people, usually, a few individuals or
corporate entities and are not available to
the public at large.
Shares can easily be transferred
it has easier means to raise capital
it commands a better credit image than a
sole proprietorship or a partnership firm,
and investors would usually show more
interest in being the part of the company.
Public Limited Company
Different from a private limited company, the
shares of a public limited company are often
available to the general public. These companies
will be found in the stock exchange. The number
of shareholders is at a minimum of least 50
people. Given that these types of companies
involve the public at large, there are more rules
and regulations that avoid exploitation and the
misuse of public funds. This option is best for large
Public Company Limited by Guarantee
Unlike private and public limited companies, this
type of company is mainly setup for a nonprofitable purpose. It is conceptually a public
company formed along the principle of limiting
the liability to the amount that members
contribute to the assets of the company.
This set up is common with non-profit
This is the simplest type of company and it’s
easiest to incorporate company in Singapore as
It is however, the riskiest considering that likes of
LLC, the owner of a Sole Proprietorship company
is seen as part and parcel of the company. They
are thus, more liable to suffer risks that arise from
Personal assets and those of the company are
under the owner’s name, meaning they are not