Guide on Setting Up a Pte Ltd Company

Private Limited Company (Pte Ltd) is a favourite legal structure in Singapore. Many business owners prefer private limited company registration in Singapore. It limits the liabilities of the shareholders who are allowed to own 100% shareholding in it. For those who are new to Singapore, there are many Singapore company incorporation services to help them with the task.

Main Features of a Singapore Pte Ltd

• Minimum initial paid-up capital of S$1
• At least 1 shareholder (maximum 50)
• At least 1 local director
• At least 1 company secretary
• Registered local office address

Business Details Requirements for a Singapore Company

ACRA approved company name: The company name needs to be unique and easy to remember. It should meaningfully describe your company.

#1.

Minimum Initial Paid-up Capital

In Singapore, you need only S$1 in minimum initial paid-up capital for private limited company registration. If you are going to apply for an EntrePass and then register a company, you will need to arrange S$50,000 in minimum capital.

#2.

Company Shareholders

You need 1-50 shareholder. They can be local or foreign individuals or corporations. Foreign entities are allowed to own 100% shareholding in a company.

#3.

Shareholders' Agreement

When there are more than one shareholders, you need to prepare a shareholders' agreement. It describes their rights, obligations, and relationships and helps avoid disputes and disagreements.

#4.

Business Activities in Brief

Give a brief description of your company's business activities. Use proper SSIC codes.

#5.

Registered Local Office Address

You need a physical address in Singapore for your company office. You need to put it on the application for forming a company. ACRA uses it for official communication. P. O. Box address is not accepted.

#6.

Company Constitution (M&AA)

Company constitution or M&AA describes how you intend to govern your company and carry out its business activities.

Private Limited Company Registration Process

The process for registering Pte Ltd in Singapore is simple and online. Your provider of Singapore company incorporation services can help you with it. They usually assign a dedicated manager to you who assists you at every turn of the process. The process has only 2 steps in it.

Step 1: Get ACRA's Approval for Company Name

You need to send us a list of 3-5 names. Our experts will visit BizFile+ portal and check if any of these is available. Send us names that are:

• Unique and describes your business activities
• Not vulgar or obscene
• Free of copyright or trademark issues
• Not black-listed

ACRA charges S$15 for name registration. We register the available name for your use for 60 days. If your application gets referred to higher authorities, the approval may take up to 2 months.

Step 2: Register a Company with ACRA

After registering a company name, we apply to ACRA to set up your company in Singapore. ACRA needs 1-3 days to process the application.

Compliance for Singapore Private Limited Companies

The Companies Act stipulates various requirements for the company director.

• Convey and hold annual general meetings regularly
• File the annual return within due dates
• Maintain and update the register of registrable controllers regularly
• Maintain the register of shareholders
• Maintain registers of secretaries, auditors and chief executive officers
• Notify ACRA of any change in the company

Singapore Taxation

The business owners and investors prefer Singapore for its low tax regime. A Pte Ltd pays corporate income tax on its taxable income. It ranges from 0%-17%.

Singapore offers tax exemptions for startup companies. Their first S$100,000 of normal chargeable income gets 75% tax exemption and next S$200,000, gets 50%, for the first 3 consecutive YA.

Singapore applies no capital gain tax. After paying their corporate tax, Singapore Companies can distribute tax-free dividends. The personal tax rates are in the range of 0%-22%, which are affordable.