The most common type of entity to be incorporated in Singapore and requires only one-time registration fees. It is a legal separate entity, distinct structure with directors managing the business operations and shareholders for the contribution of capital. Shareholders have limited liability. This entity can legally be sued as a separate entity, thus reducing the risks of personal liabilities of the individuals. As it requires more statutory filings and compliance, hence the maintenance cost of this entity is higher compared to the rest of the types of entities. Companies are being classified into different categories as stated below:-
An entity which has at most 20 shareholders and none of the shareholders is a corporation.
It can also be a company the Minister has gazetted as an EPC (see section 4(1) of the Companies Act)
An entity that has a maximum number of shareholders limited to 50
An entity which its members contribute or undertake to contribute a fixed sum to the liabilities of the company by way of guarantee. It is commonly formed for carrying out non-profit making activities, such as for promoting art, charity etc.
A public company limited by shares can have more than 50 shareholders. The company may raise capital by offering shares and debentures to the public. A public company must register a prospectus with the Monetary Authority of Singapore before making any public offer of shares and debentures.
