A company is a business entity registered under the Companies Act, Chapter 50. Most companies in Singapore are private companies limited by shares - "Pte Ltd". All companies must be registered/incorporated with the Accounting & Corporate Regulatory Authority (ACRA).
Characteristics
Who Can Register Or Incorporate?
Types Of Companies
Set Up Costs
Advantages
Disadvantages
Registering Or Incorporating Your Company
Characteristics
- A company is a legal entity (i.e. it can sue or be sued in its own name and can own or hold any property).
- The owners of the company are called shareholders. There must be a minimum of one share owned by one shareholder. The value of the share can be just S$1.
- Profits are taxed at corporate tax rates.
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Who Can Register Or Incorporate?
- Almost anyone or any company can incorporate a company.
- However, there must be at least one director of the company who is above 21 and be one of the following:
- Singapore Citizen
- Singapore Permanent Resident
- Employment Pass holder
- Approval-in-Principal Employment Pass holder
- Dependant Pass holder
- Directors cannot be bankrupts or persons convicted of dishonesty. Consult your lawyer for a full list of people who are disqualified from being directors.
- There must be at least one shareholder and one director. They can be the same person. However, most companies opt to have at least 2 directors as banks and other financial institutions usually require 2 signatories.
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Types Of Companies
- Companies can be private or public. When a company can offer shares, debentures and other interests to the public, it is known as a public company.
- There are 3 types of companies:
- Private/public companies limited by shares
- Public companies limited by guarantee
- Unlimited companies
- Most companies in Singapore are private companies limited by shares - "Pte Ltd". Private companies with more than 50 shareholders must be converted to public companies limited by shares.
- Not-for-profit, religious and charitable organisations usually set up public companies limited by guarantee. There is no share capital. When the company is wound up, each member pays a nominal fee that could be as little as S$1.
- Unlimited companies are very rare. Basically, they are companies with no restriction on membership or liability.
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Set Up Costs
- Fees for approval of company name: S$15 per name.
- Registration fees: S$300 for companies limited by shares. S$600 for companies limited by guarantee.
- Yearly renewal fees: Not applicable.
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Advantages
- Limited liability
Liability for debts and losses are limited to the value of the shares. The personal assets of shareholders are protected.
- More attractive to investors
Compan