Register Private Limited Company Singapore
Setting up a local company and incorporating a Private Limited corporation is a one of the most popular entity type used in many Singapore businesses. They can be easily identified by its suffix (E.g. Pte. Ltd., Private Limited, Private Ltd etc), that is part of their business name.
During the process to register private limited company in Singapore, there are a few things to take note of. Namely a private limited company, unlike a public company, can’t sell its shares or raise capital publicly. Despite this, there are many advantages such as limited liability to the owner to register private limited company Singapore.
Therefore, the most common entity adopted by Singapore SMEs are private limited companies. To find out more, contact us for a free Singapore company registration consultation.
What is a Singapore Private Limited Company?
- A Singapore private limited company is an independent legal entity, separate from the directors/ shareholders – it can sue and be sued in its own name. However, the company’s officers are not personally liable for the company’s debts.
- By registering a private limited company in Singapore, your company can purchase and own property.
- According to Singapore’s laws and regulations, a private limited company must have between 1 and 50 shareholders.
- The private limited company in Singapore is eligible for local tax exemptions and incentives regardless of the nationality of the directors or shareholders.
Advantages of Registering a Private Limited Company in Singapore!
- Status alone, registering a private limited company in Singapore displays a higher public perception, therefore giving your newly incorporated company a higher chances of investment / loan from a bank.
- Singapore private limited companies enjoy special corporate tax exemption and schemes.
- When setting up and registering a private limited company in Singapore, one of the primary concerns is limited liability. Through our register private limited company Singapore services, incorporating a private limited company is easy and provides the directors protection of personal assets from the uncertainty of the business operations and economic events.
- In the unlike case of death or serious injury, registering a private limited company in Singapore provides the option of continuing business activities by a newly selected directed, appointed by the shareholders.
Disadvantages of Registering a Private Limited Company in Singapore
- A Singapore private limited company has to follow strict rules and regulations stipulated in the Singapore Companies Act. Violation of rules and regulation will result in penalties and severe consequences.
- All owners who choose to incorporate and register a private limited company in Singapore will have to oblige with additional administrative work according to the Companies Act, such as filing of Annual General Meeting, Annual Returns and Financial Reporting.
- Due to obliging to the requirements under Singapore Companies Act, the newly incorporated private limited company would have to incur higher operation costs.
- During the process to register private limited company Singapore, the registration and setting-up cost with a Singapore company registration services provider such as WLP Group will be higher.
What to Prepare Before Registering a Singapore Private Limited Company
- Business Name:
In Singapore, prior to finding a company incorporation services producer such as WLP Group, you should have an idea of a business name. To register private limited company Singapore, the business name has to be approved by ACRA (Accounting and Corporate Regulatory Authority) before the Company can be registered. The requirements of the name are that:
- It is not identical or similar to another existing Business Entity’s Name
- It must not be vulgar, obscene or offensive
- It must not be banned by order of the Minister for Finance
Should the name does not meet any of the requirements stated above; ACRA will reject the proposed business name.
- Director/ Shareholder’s Details – Singaporean/ Singapore Permanent Resident
For Singaporeans or Singapore Permanent Residents registering as Director/ Shareholder, Singpass is required for the registration. The Individual must not be an undischarged bankruptcy and also not previously disqualified as a Director by ACRA.
- Director/ Shareholder’s Details – Foreigners:
For foreigners, regardless of their residency, all foreigners are required to appoint at least one local Director in order to register for a Company in Singapore. The same applies for Foreign Entities. It is important to note that the Director to be appointed must be an resident in Singapore which meant that he/she has to be a Singapore citizen, a Singapore permanent resident, a person who holds an Employment Pass, EntrePass or a Dependants’ Pass. Foreigners are required to produce also a proof of residency in their home country.
- Shareholder’s Details – Corporate Entity:
Corporate Entities looking to register as a shareholder of a Company in Singapore must provide the business profile.
All Companies are required to appoint a secretary within 6 months of company incorporation in Singapore.
- Registered Address:
All business entities, including Singapore private limited companies, are required to have a registered business address. It must be a physical address in Singapore and do note that a P.O. Box address is not allowed to be used as the registered business address.
- Singapore Standard Industrial Classification (SSIC Code):
The Singapore Standard Industrial Classification (SSIC) is the national standard taken by Singapore for classification of economic activities undertaken by Singapore Registered Business Entities. In brief, the SSIC code describes the nature of your business activities. A Singapore Registered Entitiy must have at least one SSIC code and a maximum of 2 SSIC codes that best match the nature of their business.
Tools: SSIC Code Search (ACRA)
- Paid Up Capital / Number of Issued Shares
The Company is required to state the amount of paid up capital and number of issued shares during the registration. This information will be reflected in the Business Profile.