Benefits of Private Limited Company
Private limited company is the most preferred and common
business form in Singapore. The majority of companies in
Singapore are registered as companies limited by shares.
The reasons are:
- A private limited company is a legal entity on its own
separate from its owners. Therefore, company’s directors and
shareholders are not liable for company’s debts.
- The company’s share can be 100% owned by a foreign
individual or company.
- A private limited company enjoys special tax exemptions.
- No taxes on first S$ 100,000 taxable income for exempt
private limited company for first three years from
- Effective tax rate as low as 5.6% on taxable income of up to
S$ 300,000 .
- Low flat tax rate of 17% on taxable income above S$ 300,000.
- Zero taxes on capital gains and dividends income.
- No controls or restrictions on repatriation of profits to