Incorporating a Company
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 with the Accounting & Corporate Regulatory Authority - ACRA.
Who Can 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.
- 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.
Types of 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.
- 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 - Companies can fund their business by selling shares to friends, family, employees, business associates and other companies.
- Better growth potential - A company can "go public" and raise funds by offering shares and debentures to the public. Private companies with more than 50 shareholders must be converted to public companies.