Singapore: Types of Company
Private Company Limited by Shares
Also known as a Pte Ltd company, the Private Company Limited by Shares is the most common business structure used in Singapore. The company is a separate legal entity in its own right, and so shareholders are not liable for its debts. The maximum number of shareholders allowed is 50. Although 100% foreign ownership is allowed, at least one director must be a Singapore citizen, resident or employment pass holder. Newly set-up companies can benefit from a reduced corporate income tax rate of 0% to 8.5% on chargeable income of up to SGD300,000 in their first three years.
A Pte Ltd company must register with the Accounting and Corporate Regulatory Authority (ACRA). The registration fee is SGD300, plus SGD15 for company name approval. Accounts must be audited annually and filed with ACRA. An annual tax return must be filed with both ACRA and the Inland Revenue Service of Singapore (IRAS) within one month of the company's annual general meeting.