Companies

There are several types of Limited Liability Companies (LLCs) available for businesses. The main types of LLCs are Private Limited Companies (Pte Ltd), Public Limited Companies (PLC), and Exempt Private Companies (EPC).

Private Limited Company (Pte Ltd):

Characteristics: The most common and popular type of company in Singapore.

Shareholders: Limited to a maximum of 50 shareholders.

Share Transfer: Shares are not freely transferable without the consent of existing shareholders.

Compliance Requirements: Subject to less stringent regulatory requirements compared to public companies.

Financial Statements: Required to file audited financial statements with ACRA.

Public Limited Company (PLC):

Characteristics: A company that offers its shares to the general public.

Shareholders: Can have an unlimited number of shareholders.

Share Transfer: Shares are freely transferable in the stock market.

Compliance Requirements: Subject to more stringent regulatory requirements, including financial reporting and disclosure obligations.

Financial Statements: Required to file audited financial statements with ACRA.

Exempt Private Company (EPC):

Characteristics: A type of Private Limited Company with certain eligibility criteria.

Shareholders: Limited to a maximum of 20 shareholders.

Share Transfer: Shares are not freely transferable without the consent of existing shareholders.

Compliance Requirements: Subject to certain exemptions, such as not having to file annual financial statements if specific conditions are met.

Financial Statements: May be exempted from filing audited financial statements with ACRA.

Differences:

Shareholder Limits: Private Limited Companies and Exempt Private Companies have a maximum limit on the number of shareholders (50 for Private Limited Companies and 20 for Exempt Private Companies), while Public Limited Companies can have an unlimited number of shareholders.

Share Transferability: Shares in Public Limited Companies are freely transferable in the stock market, while Private Limited Companies and Exempt Private Companies generally require the consent of existing shareholders for share transfers.

Compliance Requirements: Public Limited Companies are subject to more stringent regulatory requirements, including financial reporting and disclosure obligations. Private Limited Companies have relatively less onerous compliance requirements. Exempt Private Companies may enjoy certain exemptions from filing annual financial statements if specific criteria are met.

Financial Statements: Public Limited Companies and Private Limited Companies are required to file audited financial statements with ACRA. Exempt Private Companies may be exempted from filing audited financial statements, subject to meeting certain conditions.