The formation of a private limited company requires certain compliances with the legal requirements in accordance with the Singapore Companies Act.
Benefits
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Protection of personal assets and limited the company and personal liabilities
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Substantial tax savings as new company may be entitled to first 3 years full tax exemption for first S$100,000.00 taxable profit or partial tax exemption up to first S$300,000.00 taxable profit. Effective tax rate is less than 9%
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Exemption of audit requirement for private exempt company and company with turnover of les than S$5 million
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Easier access to capital funding through the sale of shares to investors and borrowing from banks
In order to form a private limited company, the following requirements must be adhered to:-
- The minimum number of members of ONE and a maximum of FIFTY
- The minimum issued share capital of ONE share (usually S$1.00 each)
- The company must have at least ONE local Director who is * ordinarily resident in Singapore
- There must be at least ONE Company Secretary qualified under Section 171(1B) of the Companies Act
- The company will be subject to Income Tax at the prevailing rate
“Ordinarily resident” means the usual place of residence. As a guide, indication of permanent residency in Singapore are as follows:-
- Singapore citizens;
- Non-Singapore citizens who posses the following:-
- Singapore Permanent Resident status;
- Employment Pass or Approval-In-Principle Employment Pass; or
- Dependent’s Pass
Our professional fee for the formation of a new company is S$1,500.00, excluding disbursements.