Private Limited Company (Pte. Ltd.)
- LLCs require a legal address, one shareholder, a resident director, and a corporate secretary. There is no requirement to have a minimum share capital. It’s a great choice for foreign investors. This entity can carry out any commercial or industrial activity. Also, there are no restrictions on foreign investment.
- Private limited companies can have up to 50 shareholders. The directors of the company must be a resident.
- These entities can carry out business operations as defined by the scope of the parent company. A branch based in Singapore can invoice local customers, sign contracts for sales and receive customer revenue.
- The parent company of the branch office bears all the liabilities of such a business entity and, in the event of losses, the parent company will have unlimited liability.
- Only foreign companies can set up a branch office. The branch offices in the country are not eligible for tax incentives and can not benefit from double taxation avoidance treaties.
- This entity is the best choice if the foreign entity does not wish to make any direct revenue from commercial activities in the country and they do not need to file for taxes.
- Representative offices are not allowed to make direct sales. These entities can carry out promotional activities for the goods and services of the parent company. Research and development operations can also be carried out.
- The staff of a representative office can only have a maximum of five members. The limited scope of the representative offices has a limited life span, they can operate only up to 3 years before they are required to be converted into a branch.
- The parent company of the representative office must be more than three years old. In addition, the annual sales of a parent company must be more than US$ 250,000.
Free Zone Company
- Our clients in Singapore can set up a free zone company. Several free zones are available in Singapore.
- Benefits include storage facilities for both local and foreign companies. Also, no authorization is required for the transshipment of goods which are not controlled. Furthermore, no customs duty and GST must apply to imported products in the free zone.
- This entity is a great option if the goods have to be imported for further processing into Singapore and the finished goods have to be exported to other countries.
Limited Liability Partnerships
- Its required a minimum of two partners at least US $1 is required as the minimum share capital for the incorporation. One manager must be appointed, this individual must be a resident in Singapore.
- This business entity is not required to pay yearly corporate tax. However, the revenue of the partners will be taxed. In the event partners are natural individuals, they must also pay personal income taxes.
- This type of business entity is best suited for the provision of professional services such as tax, accounting, consulting and legal services.