Private Limited Company (Pte Ltd)

Q: What are the main benefits of a Private Limited Company?

&lt;p&gt;&lt;span style=&quot;color: rgb(27, 28, 29)&quot;&gt;The key benefits are limited liability (protecting personal assets), a separate legal identity, enhanced credibility, perpetual succession, and easier access to funding and tax incentives.&lt;/span&gt;&lt;/p&gt;

Q: How many shareholders are allowed?

&lt;p&gt;&lt;span style=&quot;color: rgb(27, 28, 29)&quot;&gt;In Singapore, a Private Limited Company can have up to 50 shareholders.&lt;/span&gt;&lt;/p&gt;

Q: Do I need a local director?

&lt;p&gt;&lt;span style=&quot;color: rgb(27, 28, 29)&quot;&gt;Yes, in Singapore, a Private Limited Company must have at least one director who is a local resident (a Singapore Citizen, Permanent Resident, or EntrePass holder).&lt;/span&gt;&lt;/p&gt;

Last Updated 25 Jul 2025

A Private Limited Company (Pte. Ltd.) is a business structure that is a separate legal entity from its owners (shareholders). This means the company can own assets, enter contracts, and sue or be sued in its own name. Its shares are held privately and cannot be offered to the public, with the number of shareholders typically limited (e.g., to 50 in Singapore).

Why is Setting Up A Private Limited Company Important?

This is the most popular and recommended business structure in Singapore and Malaysia for serious entrepreneurs and SMEs. It provides limited liability protection for its owners, has perpetual succession (the business continues even if owners change), and offers greater credibility, making it easier to raise funds from investors and secure loans from banks.

Frequently Asked Questions

What are the main benefits of a Private Limited Company?

The key benefits are limited liability (protecting personal assets), a separate legal identity, enhanced credibility, perpetual succession, and easier access to funding and tax incentives.

How many shareholders are allowed?

In Singapore, a Private Limited Company can have up to 50 shareholders.

Do I need a local director?

Yes, in Singapore, a Private Limited Company must have at least one director who is a local resident (a Singapore Citizen, Permanent Resident, or EntrePass holder).