Private Limited Company

Private Limited Company

A company is a business entity registered under the Company Act. Chapter 50.¬†¬†Most privately incorporated businesses in Singapore are registered as private limited companies. A private limited company name in Singapore usually has the word ‘Pte Ltd’. The shareholders of a private limited company can either be individuals or corporate entities or both.

A private limited company is the most advanced, flexible, and scalable type of business incorporation in Singapore. Its also the most preferred type of Singapore business entity for serious entrepreneurs.

For more detailed information about private limited companies, refer to Singapore company registration guide.

Why entrepreneurs prefer Private Limited Company

Separate Legal Entity : A private limited company has its own legal identity, separate from its members and its directors. It can acquire assets, go into debt, enter into contracts, can sue or be sued in company name. Members have limited liability.
Perpetual Succession: The companys existence does not depend on the continued membership of any of its members. Ease of transfer of shares or changes in shareholders ensures that company continues to exist even in the event of death, resignation, or insolvency of shareholders or directors.
Ease of raising capital: You can raise capital for expansion or other purposes by bringing in new shareholders or issuing more shares to existing shareholders. Investors are more likely to purchase shares in a company where there usually is a separation between personal and business assets.
Credible Image: As an incorporated business entity, investors will be more willing to become part of the company as it demonstrates a vision to grow and expand. As a Pte Ltd company, your business will be taken more seriously by your potential clients, suppliers, bankers, and other professionals you will be dealing with.
Easier transfer of Ownership: Ownership of a company may be transferred, either wholly or partially, without disrupting operations or the need for complex legal documentation. This can be done through the selling of all or part of its total shares, or through the issue of new shares to additional investors.