Business Incorporation & Types of Companies
Different types of businesses necessitate different company setups. Before starting a business or incorporating a company, learn which type of company will work most efficiently for your business.
Private Company limited by shares
(i) Private Company
A private company has a maximum number of shareholders limited to 50.
(ii) Exempt Private Company
An Exempt Private Company (EPC) is a private company which has at most 20 shareholders and none of the shareholders is a corporation. It can also be a company the Minister has gazetted as an EPC (see section 4(1) of the Companies Act).
(i) Public Company limited by shares
A public company limited by shares can have more than 50 shareholders. The company may raise capital by offering shares and debentures to the public. A public company must register a prospectus with the Monetary Authority of Singapore before making any public offer of shares and debentures.
(ii) Public Company limited by guarantee
A public company limited by guarantee is one which its members contribute or undertake to contribute a fixed sum to the liabilities of the company by way of guarantee. It is commonly formed for carrying out non-profit making activities, such as for promoting art, charity etc.