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What are the Pros and Cons of Singapore Pte Ltd (Private Limited Company)?
What are the advantages and disadvantages of a Pte Ltd (Private Limited Company) in Singapore?
What are the plus and minus of a Pte Ltd (Private Limited Company) in Singapore?
What are the Pros and Cons of Singapore Pte Ltd (Private Limited Company)?
What are the advantages and disadvantages of a Singapore Pte Ltd (Private Limited Company)?
What are the plus and minus of a Singapore Pte Ltd (Private Limited Company)?
Advantages / Pros of Pte Ltd (Private Limited Company) in Singapore:
- 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 of Pte Ltd (Private Limited Company) in Singapore:
- 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
