Every private limited company which is based in Singapore is required to have between one and 50 shareholders. These shareholders may either be corporations or humans and may either be based inside or outside Singapore.

Private Limited Company

Every private limited company in Singapore is legally required to have shareholders. Through the ownership of their shares, the shareholders of the company collectively serve as the owners of the company. Some of these shareholders will hold more shares than others. This therefore means that the shareholders who hold more shares own a larger portion of the company. Such shareholders therefore have more of a say in the affairs of the company than do shareholders who do not hold as many shares due to their increased level of influence upon the company.

On that note, if you happen to be interested in starting a private limited company of your own in Singapore, we at Paul Hype Page & Co will be willing to serve your needs. We will ensure that your new company will be incorporated in a manner which is compliant with the legal regulations and requirements which are in force in Singapore so that you will not encounter any serious problems while running your company.

 

Rights of Shareholders in Singapore

Every shareholder of a Singapore private limited company is endowed with certain rights. Among these is the right to vote regarding all matters which directly affect the company. They use this right when voting during a time when there is a requirement for an ordinary resolution to be passed. Shareholders are also permitted to receive dividends. The value of the dividends to be received by shareholders is commensurate to the value of the shares which are owned by the shareholders. Should the company ever have to be liquidated, all shareholders may also use their

assets during a time of liquidation. However, ordinary shareholders may only make such a claim after any debt holders and preference shareholders have done so. Shareholders are also among the people who are allowed to call and attend meetings. Such meetings include annual general meetings (AGMs) and extraordinary general meetings (EGMs).

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Ownership of Shares of a Singapore Private Limited Company

Most people believe that the lowest number of shares which could be owned by any shareholder in Singapore is one. However, such a belief is incorrect. It is possible to own less than one share of a Singapore private limited company. Such may be done through the use of a method of share ownership known as fractional shares. A fractional share is defined as a share of an amount which is less than one complete share. In Singapore, a fractional share may amount to as few as 0.0001 shares of the company. This therefore means that any shareholder of a Singapore-based private limited company is not restricted to purchasing a complete share. The company and any associated authorities will also work with the owner of fractional shares by maintaining accurate records of the amount of shares owned by each shareholder.

The current company laws of Singapore specify the limits on the number of shareholders of every private limited company in the country. All Singapore private limited companies are to have a number of shareholders which is between one and 50. However, these same laws make no specific mention about how many shares each shareholder must own. Such is the case whether a minimum or maximum number of shares is in use. Therefore, since the lowest number of shareholders which is permissible is one, it is therefore possible for one shareholder to own every share of a private limited company in Singapore. Although such a situation is relatively rare, it is nevertheless allowed.

It is also legally permissible for every share of a Singapore private limited company to be owned by foreigners. In fact, the government of Singapore encourages foreigners to do so because it welcomes the input of foreigners in order to stimulate the country’s economic activity. Singapore has always been open to the corporate and economic contributions of foreigners.