Company Type Formation Process
A corporation is registered through a process known as a company registration procedure. This procedure is easy to follow and doesn’t require much time. To ensure a smooth process, however, all requirements under the Company Registration Procedure must be met. Therefore, a business owner must first decide what kind of company will be incorporated. Based on this, the business owner must proceed with the Company’s registration. Various advantages are provided as part of the company registration process. Under the company registration process, foreign businesses may also open branch offices in Singapore.
Singapore company registration by type
company registration in Singapore can be categorized as follows:
Limited Liability Company
A firm limited by shares is known as a private limited company registration. Private limited companies do not have their shares listed on a public stock exchange. In a private business, 50 shareholders are the maximum number permitted. A private firm is entitled to certain tax advantages. A private firm, however, can become a public company. Beside, a private limited corporation must have a minimum number of directors and shareholders in order to register. Therefore , a private limited company’s shareholders might also be corporations.
Private Exempt Company
A business that is also a private company is called an Exempted Private Company (EPC). However, the maximum number of stockholders for an EPC is 20. An EPC cannot be said to have any shareholders that are corporations. Therefore, an EPC is only considered to have individual members. An EPC is someone who serves as a minister.
Private Corporation Limited by Shares
An organization whose shares are listed on the Singapore Public Stock Exchange is known as a public limited corporation. Shareholders in a public limited firm number beyond 50. The minimum number of shareholders for a public limited company registration is this number. A public limited business can raise money by selling shares and debt obligations. According to the Monetary Authority of Singapore, a public limited company must prepare its prospectus before selling shares to the general public (MAS). The MAS and ACRA are met by this.
Public Limited Company with a Guarantee
Similar to a non-profit organization, this type of company. Typically, this type of company is founded by the members to conduct non-profit operations. There are no shareholders in this type of corporation. Instead, there is a set number of people who belong to this group.
What Benefits Come with Registration?
The following are some important advantages for a company registration for business:
an improved reputation
An entity gains immediate reputational advantages when it registers with the ACRA as a corporation. A corporation that complies with land rules will have greater favor with investors.
Companies that are registered follow the law. As a result, intellectual property rules would automatically protect them. The Company’s goodwill and reputation are safeguarded in accordance with intellectual property rights legislation. In cases of infringement, the Company may potentially bring legal action against other companies.
Limited liability denotes that the directors and shareholders’ liability is restricted to the number of shares outstanding. This indicates that the members’ culpability is constrained. In this case, creditors will not pursue the members’ personal assets.
A company that is registered in accordance with the Singapore Companies Act benefits from perpetual succession. This indicates that the Company is capable of existing without the oversight and control of the directors and shareholders. The Company can continue operating even if its directors and shareholders disappear. The Company has the authority to sign agreements and even buy its own property. However, only the gents of the Company are authorized to sell the land. The Company’s agents are the directors.
Who oversees Singapore’s company registration process?
The Accounting and Corporate Regulatory Authority is Singapore’s primary regulatory body for company registration (ACRA). Chapter 50 of the Singapore Companies Act contains the legislation that governs the business registration process. Moreover, for Singapore’s company registration process, the ACRA serves as a registrar. A prospectus must be created when a public firm needs to sell shares to the general public. The prospectus must follow the MAS’s guidelines for format.
Source: types of companies in singapore