The formation of a private limited company requires certain compliances with the legal requirements in accordance with the Singapore Companies Act.

Benefits

  • Protection of personal assets and limited the company and personal liabilities

  • 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%

  • Exemption of audit requirement for private exempt company and company with turnover of les than S$5 million

  • 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:-

  1. The minimum number of members of ONE and a maximum of FIFTY
     
  2. The minimum issued share capital of ONE share (usually S$1.00 each)
     
  3. The company must have at least ONE local Director who is * ordinarily resident in Singapore
     
  4. There must be at least ONE Company Secretary qualified under Section 171(1B) of the Companies Act
     
  5. 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.