The majority of all companies which are incorporated in Singapore today are private limited companies. This is because private limited companies possess inherent advantages which are not granted by any other business entity which could be established in Singapore. Among the many advantages enjoyed by Singapore’s private limited companies relate to taxation. All of the profits of a private limited company are taxed at Singapore’s extremely low corporate tax rate of just 17%. Furthermore, all private limited companies in Singapore which have been newly incorporated are able to receive certain tax exemptions and incentives offered by the government. A private limited company also remains in existence until its shareholders make the decision to terminate the business operations of the company. Even if one or more of the company’s shareholders die, the company’s business operations will nevertheless be sustained. The personal assets of all of a private limited company’s shareholders are also fully protected because the shareholders of a private limited company are excused from any personal liability for any financial losses or debts which have been incurred by a company.
When one considers the many advantages which are inherent to the establishment of a private limited company in Singapore, it should not come as any surprise that many people all over the country have become interested in starting one. If it is the case that such is also true of you, we at Paul Hype Page & Co are more than willing to be of assistance with the establishment of a private limited company of your own. We will even assist you with the selection of people whom we deem to be suitable to serve as the company secretary and the director of your company. In this way, we ensure that all of your new company’s compliance requirements are completely fulfilled.
Identity and Roles of the Shareholders of a Singapore Private Limited Company
There are no restrictions which pertain to the nationality of the shareholders of any private limited company based in Singapore. It is even possible for every share of the company to be held by foreigners. The shareholders of a company are not necessarily required to be people. In many cases, other companies take the role of shareholder of a different company. The companies which hold shares may either be local companies or foreign ones.
All of a company’s shareholders combine to serve as the owners of the company. For this reason, the company’s shareholders have certain roles which they must fulfill in their capacity as the company owners. Shareholders are to vote whenever they may be required to do so. Such instances in which shareholders may have to vote include the firing or hiring of a director, the change of the company’s name or share capital, or the selection of a new director. They also have the right to attend meetings as well as that to call for them. Such meetings include extraordinary general meetings (EGMs) as well as annual general meetings (AGMs). In EGMs and AGMs alike, shareholders have the opportunity to state any concerns which they may have regarding the operation of the company.