Private limited company advantages and disadvantages.

Advantages / Pros:

• Separate legal entityfrom members and directors, which means that members and directors are not personally liable for the losses and debts incurred
• Easier to obtain fundingduring start-up years and also eligible for government funded micro loans offered by local banks
• Succession of Company is perpetual, until they are struck off or wound up
• From the Year of Assessment 2020:Your company is required to pay the tax at 4.25% on the Net Profit for the first SGD100,000/-, whereas at 8.5% and 17% for the next SGD100,000/- and beyond first SGD200,000/- respectively effective from the Year of Assessment 2020.
• Singapore companies do not have to pay taxes on capital gains or dividends.
• And many more.

Disadvantages / Cons:

• Higher registration cost and also costly to maintain
• More compliance obligations (e.g., a company secretary has to be appointed within 6 months of the company’s incorporation)
• Annual General Meeting has to be conducted
• Annual Return filing with the Authority
• Estimated Chargeable Income and Corporate Tax to be filed
• Limitation in Fund Raising compare to Public Company

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