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Things You Need to Know About a Limited Company in Singapore


A limited company stands as a separate legal entity. It isn’t anyone’s ownership, but there are shares. A Limited Company protects the investor’s personal funds from their investment. Furthermore, most of the government incentives in Singapore are targeted at a limited company. Thus, it is the most preferred, popular, and recommended business entity in Singapore.

What are the Types of Limited Companies in Singapore?

In terms of how they are limited, there are two types of limited companies in Singapore:

Company Limited by Shares

The company has shares that can be bought by various parties, which can be people or other companies.

Again, regarding how the shares are available, there are two types of Limited Companies:

Private Limited Company

In a private limited company, the shares can be transferred to other shareholders, but cannot be sold to the public. They are the most suited for Startups and SMEs that are still growing.

Public Limited Company

A public limited company is one that has been listed in the stock market. The shares can be transferred between the shareholders and can be sold to the public. Private Limited companies will convert to public limited companies when they grow to become big brands.

Company Limited by Guarantee

In a company limited by guarantee, guarantors agree to take responsibility of the company’s liabilities. In other words, if the company goes down, the guarantors contribute the finance to bring it back up. A company limited by guarantee is best suited for Non-Profit Organizations.

What are the Requirements for Opening a Limited Liability Company in Singapore?

From the above information, you may have inferred that when we mention ‘Limited Liability Company’, we generally mean a Private Limited Company in Singapore. To open one, you need a company name, a resident director, resident secretary, between 1 to 50 shareholders, and a registered address. If you are confused about the requirements and registration, you can seek help through business advisory services.

How to Open a Limited Company in Singapore:

You can contact a Singapore accounting firm that offers company registration services. Tell them your requirements, and they will register your company for you.

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