Closing the Business:

• Winding Up – Voluntarily by members or creditors, compulsorily by the High Court
• Striking off

Taxes:

• Profits taxed at corporate tax rates

Formalities and Expenses:

• More costly to set up and maintain
• More formalities and procedures to comply with
• Must appoint a company secretary within six months of incorporation
• Must appoint an auditor within three months after incorporation unless the company is exempt from audit requirements
• Annual Returns must be filed. Statutory requirements for general meetings, directors, company secretary, share allotments, etc. must be complied with.

Registration Requirements:

• At least one shareholder
• At least one director ordinarily resident in Singapore, at least 18 years old
• If a foreigner wishes to act as a local director of the company, he can apply for an EntrePass from the Ministry of Manpower
• Undischarged bankrupts cannot be a director and cannot manage a company without approval from the Court or the Official Assignee.

Legal Status:

• A separate legal entity from its members and directors
• Members have limited liability
• Can sue or be sued in company’s name
• Can own property in company’s name
• Members not personally liable for debts and losses of company

Owned by:

• Exempt Private Company –20 members or less and no corporation holds beneficial interest in the company’s shares
• Private Company – 50 members or less

Definition: A business form which is a legal entity separate and distinct from its shareholders and directors