One of the most common questions we get is “Can I incorporate a company in Singapore without any shareholders?”, and we hope to bring some clarity to this question. The answer is quite straightforward – a private limited company must have a minimum of one shareholder, according to Singapore company laws.
However, if you plan to operate a business in Singapore which does not have any shareholders has the options of starting either a sole proprietorship or a partnership.
Shareholders play extremely important roles in such companies. As the collective owners of a Singapore-based company, shareholders are granted certain rights and decision-making powers. Shareholders of a company based in Singapore may either be local or foreign with private companies can be 100% owned by foreigners.
Many chose to incorporate a sole proprietorship because it is the easiest and least costly of all business structures to set up, unlike the set up of other forms of business where there will be so many formalities and compliance requirements. With this structure, you can incorporate a company in Singapore without any shareholders.
One major advantage of a sole proprietorship all profits generated will go directly to the sole proprietor.
The downside to this is that in a sole proprietorship, the business and its owner are considered a single legal entity. This means that the business owner is personally liable for the debts of the business and any other legal action taken against it. You can also be sued in a personal capacity and the worst of it all, it will deem you to have an unlimited liability. Therefore, if anything of such happens, it will put your personal assets at risk.
Learn more about the requirements to set up a sole proprietorship.
Let’s dive into the 3 common types of partnerships:
In deciding the type of partnership to set up, consider the following factors:
If you’re at crossroads on what kinds of entity to select, approach Paul Hype Page & Co. We help clients understand the most suitable business entity for the business activities which are to be performed.
“ Integrity and professionalism is what they’re all about, and Paul Hype Page & Co. helped me do everything I didn’t know how to do and what I didn’t have time to do especially with their one of the kind online ibizfile portal, which allows me to get the setup of my company all done before i am even in Singapore physically! Cheers to that! ”
One of the most important rights possessed by a Singapore company’s shareholders is that of the right to receive a portion of the company’s profits. They receive this portion of the profits in the form of dividends. The details about how shareholders are to receive dividends are usually detailed in a shareholders’ agreement.
However, companies which do not have a shareholders’ agreement may nevertheless provide their shareholders with dividends according to the proportion of the company’s shares which they hold. Shareholders also have the right to approve auditors for the company. Should the shareholders deem such a move necessary, they may even choose to remove one or more of the company’s current directors.
Another right of shareholders of a Singapore company is that of attending the company’s general meetings as well as voting during these meetings. Such meetings include annual general meetings (AGMs) and extraordinary general meetings (EGMs). These meetings play important roles in charting the future business path of the company; therefore, shareholders have much of a say in the future of the company’s business prospects.
Before deciding on the type of vehicle your business is embarking on, you should consider the pros and cons of each carefully. While it may seem complicated, Paul Hype Page is here to help you find the best option in setting up your business. Hope we managed to give you clarity on the question – “Can I incorporate a company in Singapore without any shareholders”.
Nope, you must register a company to run your online business.
Yes, you can.
Yes, to incorporate a company in Singapore, you need at least one local resident. As a foreigner, you can appoint a nominee director or get an employment pass.
Some of the popular businesses in Singapore are laundry, online marketing, e-commerce, financial services, cleaning service, content writing and consulting.