Private Limited Company (Pte Ltd)
Private Limited Company (Pte Ltd)
Company formation in Singapore
The Pte Ltd is best suited for: Foreign entrepreneurs entering the Asian market, Tech startups seeking venture capital, SMEs that want a credible, tax-efficient base, Holding company structures across Asia-Pacific. Taxed at a flat rate of 17% on chargeable income. New companies benefit from a partial tax exemption scheme: 75% exemption on the first SGD 100,000 and 50% exemption on the next SGD 100,000 for the first three consecutive years of assessment. Singapore operates a one-tier corporate tax system — dividends paid to shareholders are tax-free. There is no capital gains tax. Foreign-sourced income is taxed only when remitted into Singapore, subject to certain exemptions under the Foreign-Sourced Income Exemption (FSIE) scheme.
- Foreign entrepreneurs entering the Asian market
- Tech startups seeking venture capital
- SMEs that want a credible, tax-efficient base
- Holding company structures across Asia-Pacific
Key Facts
Step-by-Step Formation Process
Reserve a company name
Submit a name application through BizFile+, the Accounting and Corporate Regulatory Authority (ACRA) portal. The name must be unique and not infringe on existing trademarks. Approval is usually instant for straightforward names, though names referencing regulated industries (e.g., finance, education) may require additional clearance.
Prepare incorporation documents
Draft the company constitution (formerly Memorandum & Articles of Association), gather KYC documents for all directors and shareholders — including passport copies, proof of residential address, and a brief description of business activities.
File incorporation with ACRA
Submit the incorporation application via BizFile+ with the constitution, director and shareholder details, registered office address, and the SGD 315 government filing fee. A locally resident director (Singapore citizen, permanent resident, or EntrePass / Employment Pass holder) is mandatory.
Receive Certificate of Incorporation
ACRA issues a unique entity number (UEN) which serves as both the company registration number and tax reference number. The Certificate of Incorporation is generated electronically via BizFile+.
Post-incorporation compliance
Appoint a company secretary within six months, register for GST if projected annual revenue exceeds SGD 1 million, open a corporate bank account, and set up accounting records. An annual return must be filed with ACRA, and a company tax return (Form C-S or Form C) must be submitted to the Inland Revenue Authority of Singapore (IRAS).
Required Documents
- Passport copies of all directors and shareholders
- Proof of residential address (utility bill or bank statement, not older than 3 months)
- Company constitution
- Registered office address in Singapore
- Consent-to-act forms for directors and company secretary
- Description of intended business activities (SSIC code)
Cost Overview
Tax Treatment
Taxed at a flat rate of 17% on chargeable income. New companies benefit from a partial tax exemption scheme: 75% exemption on the first SGD 100,000 and 50% exemption on the next SGD 100,000 for the first three consecutive years of assessment. Singapore operates a one-tier corporate tax system — dividends paid to shareholders are tax-free. There is no capital gains tax. Foreign-sourced income is taxed only when remitted into Singapore, subject to certain exemptions under the Foreign-Sourced Income Exemption (FSIE) scheme.
Pros & Cons
- Separate legal entity with perpetual succession — the company exists independently of its owners
- Flat 17% corporate tax rate with generous exemptions for new startups (up to 75% exemption on the first SGD 200,000 for the first three years)
- No capital gains tax, no tax on dividends paid to shareholders
- Strong intellectual property protection under common law and dedicated IP legislation
- Access to Singapore's extensive double tax treaty network of 90+ agreements
- Highly regarded jurisdiction with AAA credit rating, lending credibility with international partners and banks
- Must appoint at least one locally resident director — foreign founders without a Singapore pass need a nominee or must relocate
- Annual compliance obligations include filing annual returns, holding AGMs, and submitting audited accounts (if above thresholds)
- Company secretary must be appointed within 6 months and must be a Singapore resident
- Striking off an unused Pte Ltd requires a formal process with ACRA and can take 4–6 months
Other Structures in Singapore
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.