Register a Pte Ltd Company in Singapore
Private Limited Company Definition
A private limited company (PLC) is a limited liability company (LLC) in which the shares are held by less than 50 persons and are not available to general public.
Most incorporated companies in Singapore prefers to be registered as private limited company by shares. A private limited company will be identified by the suffix of Private Limited or Pte Ltd.
The shareholders of a private limited company can either be individuals or corporate entities or even both. Also, this type of company is the most advanced and flexible, and type of business form in Singapore.
Features of a Private Limited Company
- They are an independent separate legal entity from the company owners. This means, the company can sue and be sued in its own capacity, which makes the company’s directors and shareholders not liable for the company’s debts
- Company directors and shareholders’ have limited liability to the company. If the company has sufficient paid up capital, then there are no obligations for the shareholders to the company’s creditors, and their personal assets are protected from these creditors
- Private limited company can be owners of properties
- Maximum of 50 shareholders inside the company
- A Singapore Private Limited Company is considered a tax resident; therefore it is eligible for local tax exemptions and incentives.
The Disadvantage of a Private Limited Company
In virtue of the rules and regulations stipulated in the Singapore Companies Act,
- a Private Limited company’s memorandum and articles of association (MAA) is supposed to restrict the right of its members to transfer their shares in the company by stipulating that any transfer has to be first approved by the company’s board of directors or that the shares be first offered to be transferred to existing shareholders. This move makes the shares of the company harder to be transferred out of the company.
- Annual Returns and Directors’ Reports are required and must be filed, and thus the company must have at least one director and one company secretary.
- Greater disclosure and administration requirements, therefore operation costs are generally higher.
- Directors must disclose to the company information about their interests in the company’s shares, contracts and debentures.
- Companies can be more expensive to set up.
- Companies must maintain on-going compliance with ACRA/IRAS
Advantage of a Private Limited Company
- By having Private Limited company Singapore company incorporation, it conveys a the voice of professionalism and commitment to investors. This will also increase the company’s chances of obtaining commercial loans from banks,
- Shareholders not liable for debts and losses of company,
- Profits taxed at corporate tax rates. Dividends are tax free in the hands of shareholders,
- Newly incorporated companies are entitled to tax incentives and exemptions,
- The company, as a separate legal entity, does not cease to exist if one or more of its shareholders die,
- Ownership of a company can be transferred, and additional shareholders can be appointed,
- Additional shareholders can be appointed, which enables additional capital injection for expansion purposes.
Before we proceed, please allow us to inform you that incorporation of companies in Singapore is not as easy as you think. Your application can be rejected if you don’t fulfill the minimum requirement or standards that has been set by the relevant government bodies.
Money Laundering in Singapore
There are many types of people who still believe that Singapore is an easy place to launder their money. However, Singapore adopts a strict approach to combat money laundering and terrorist financing (ML/TF). This is led by the Anti-Money Laundering and Countering the Financing of Terrorism Steering (AML/CFT) Committee. This comprises the Permanent Secretary of the Ministry of Home Affairs, Permanent Secretary of the Ministry of Finance and Managing Director of the Monetary Authority of Singapore.
We at Paul Hype Page & Co adhere to the regulation set by ACRA and Monetary Authority of Singapore (MAS). Before we incorporate your company, it is necessary for us to know who you are through the Know Your Customer (KYC) process. The regulations will assist the relevant authorities in knowing understanding all financial dealings better to monitor any transactions for identification and preventing suspicious transactions.
Under the MAS Act, any institution that fails or refuses to comply with their requirements is guilty and will be liable on conviction to a fine not exceeding $1 million.
What is KYC
Know your customer (KYC) refers to due diligence activities that all regulated companies must perform to ascertain relevant information from their clients for doing business with them. Everyone who is incorporating a company in Singapore are required to pass the KYC process. This is a necessary measure to ensure that everyone that has a company in Singapore are legitimate entities.
With our ibizfile system, together with the assistance of Dow Jones, the process of conducting a KYC search is easy, effective, and legitimate. These are all done in accordance with the Singapore Evidence Act.
The Process to a Successful Private Limited Company Registration
- Propose and reserve your company name in Singapore. However, Accounting & Corporate Regulatory Authority (ACRA) will reject a proposed company name if,
- It is identical to another existing Company Name
- It is undesirable
- It issimilar toan established name or trademark
- Prepare your Singapore company incorporation documents
- Register your company with ACRA
- Opening of corporate bank accounts
- Submit an electronic Certificate of Incorporation
- Obtain a company/branch office Business Profile extract from ACRA
- Create minutes of the first board meeting
- Create and keep in safe custody the company seal or company/branch office rubber stamp and pay the relevant government and professional fees.
Typically, the process to have your company up and running takes about 24 – 72 hours. However, that will depend on how fast we are given all the documents required. Company registration might take longer if,
- The company is a corporate entity
- Identity card/ passport / corporate ID failing the required risk assessment test
- Insufficient documents presented
- Expiring of documents in iBizfile after 72 hours
Minimum Requirements for a Singapore Company Registration
Shareholder (individual or corporate)
- At least one local/ permanent resident director
- Company secretary
- Initial paid-up share capital of at least $1
- A physical Singapore registered address (this can be an office or a residential address)
Opening a Corporate Bank Account in Singapore
Once the company has been incorporated, you may open a corporate bank account with any of the local or international banks based in Singapore.
The Added Value We Bring to You
As Singapore’s NO. 1 company incorporation service provider, our dedicated Corporate Specialists are here to guide you through the entire Singapore company incorporation process, to make sure you have your business in Singapore a smooth sailing process.
Paul Hype Page & co have 3 physical offices located in Malaysia, Indonesian and Singapore. We also have a virtual office in Korea.
That means, coming in with Paul Hype Page & Co, do not only open you to the Singaporean client base, but open a possibility of conquering the Association of Southeast Asian Nations (ASEAN) region.
With 3 other offices in the Association of Southeast Asian Nations (ASEAN) region, we can guide you to venture your business into that region.
In ASEAN, it all about personal relationship. Hence, our dedicated and friendly staffs at Paul Hype Page & Co will provide you with personalize and private consultation if you need help with matter such as,
- Banking within your jurisdiction
- Business liaising with the government department
- Business license applications
- Emailed documentation of your addresses matters on your residency, financial background from your country of origin
How our Physical Presence Will Help You to Save Tax and Consider Tax Evasion
A key consideration for setting up an offshore company in Singapore is the corporate tax rates but Paul Hype Page & Co has a distinct advantage because with our physical office and staffs. We offer the following services to ensure that you are TAX Compliance:
- Domiciliation Services
- Services Office with REAL staffs running your operation
- Registered Agent Services
Satisfied with the explanation. Incorporate now with us.