Guide on Setting up a Pte Ltd in Singapore
Updated on Tuesday 16th July 2019
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The Pte Ltd or the private limited company is among the most popular business forms in Singapore. It is a type of legal entity that can have a limited number of shareholders, and its shares are not available to the public. However, it has a set of clear advantages to investors and it is subject to a simple incorporation procedure.
We present essential information about the Pte Ltd in Singapore, the requirements for investors and details about the post-registration phase. For more comprehensive information, we invite investors to contact our experts in the registration of a private limited company in Singapore.
What are the requirements for shareholders and directors in Singapore?
Company shareholders and directors in Singapore must be at least 18 years of age. The company has a minimum of one shareholder who can be a natural or legal person and at least one director. A company secretary is also required. The sole director cannot act as a company secretary.
These requirements for the Pte Ltd in Singapore are only briefly discussed in this guide. You can reach out to one of our company formation agents for complete details.
What are the requirements for a minimum share capital for the Pte Ltd?
The Pte Ltd Singapore is a type of company that does not require a large minimum capital. In fact, investors can start this type of business with one 1 SGD. The conditions for the minimum share capital do change however if the company is a regulated business, such as a financial services agency or a recruitment agency or even a travel agency. In these cases, the minimum paid-up requirements will change. Another situation in which the minimum capital has a minimum value of 50,000 SGD is when the investor is also applying tor a relocation visa, the Entrepreneur Pass.
One of our agents who specialize in setting up a private limited liability in Singapore can give you complete details on these requirements.
What are the taxation and accounting compliance principles for the Pte Ltd Singapore?
Singapore is a preferred location for company formation because of the low tax regime. The Pte Ltd Singapore is subject to a corporate income tax rate of 17%. New companies can also qualify for an exemption where the first 100,000 SGD of the normal chargeable income and 50% of the next 200,000 SGD of chargeable income are exempt from tax, for the first three consecutive years of assessment.
The tax year is usually the same as the calendar year and companies must submit the estimated chargeable income with the IRAS. As far as accounting is concerned, any relevant documents are to be kept for at least three years after the completion of the transaction.
One of our agents can provide you with more details on taxation, other than the ones highlighted in this guide on setting up a Pte Ltd in Singapore.
Choosing an available company name, preparing the Articles of Association and filing in the registration form are essential when opening a company in Singapore. The name of the company needs to be a unique one, thus the first step for company registration is to reserve the chosen name. The registration process cannot advance unless the company has its name approved.
Our team of agents can guide you on setting up a Pte Ltd in Singapore and can give you more details on each of the steps for opening this type of company.
Investing in Singapore
Many foreign investors seek a personalized guide on setting up a Pte Ltd in Singapore when they decide to incorporate in the city-state.
The development of the corporate sector in Singapore is highlighted in the statistics below:
- - the main industrial sector is finance and insurance, with approximately 5,804.1 billion SGD or 69.7% of the total assets;
- - the second sector is wholesale and retail trade, with 10.3% of the assets or approximately 850.9 billion SGD;
- - the third sector by total assets value is the manufacturing sector, with 4.8% or 400.6 billion SGD.
The data mentioned in this article is issued for the year 2017 by the Department of Statistics Singapore.
Local and foreign investors may find that the Ptr Ltd is a suitable business entity choice for investing in any of these mentioned sectors, provided that the company will have a small or medium-size and that it will not be listed on the stock exchange. When needed, a private limited liability company can be converted into a public limited liability company with the help of our experts.
Contact us if you have any further questions or if you need complete specialized assistance for the registration of a private limited company in Singapore.