Opening a Pte.Ltd Company in Singapore: A Detailed Guide (2025)

Setting up a Pte.Ltd company is a very popular choice among many local and foreign business owners in Singapore for many years. type of company,

In the following article, GLA will help businesses clarify:

• What is the business type Pte.Ltd.
• Why is this the most popular type in Singapore.
• How to register a Pte. Ltd. company
• Disadvantages to be aware of when choosing this type. 

1. Overview of Pte.Ltd in Singapore

1.1. What is the type of Pte.Ltd company in Singapore?

What is the type of company Pte.Ltd or Private Limited Company? Private Limited Liability Company (LLC) in Singapore. This is a popular choice for Small and Medium Enterprises (SMEs).

A limited liability company can have up to 50 shareholders and the liability of the shareholders is limited to the amount of capital they invest in the company.

To set up a private limited company in Singapore, a Business must register with the Accounting and Corporate Regulatory Authority (“ACRA”).

Like other types of companies, the company must comply with Singapore regulatory requirements, such as filing annual reports and keeping appropriate financial records.

1.2. What is the Exempt Private Limited company type?

Exempt Private Limited is an exempt private company, a case of Pte.Ltd, in which all shares held by individuals, not held directly or indirectly by any company (i.e. another limited liability company) and no more than 20 members (Pte.Ltd has maximum 50 members)

2. Why should businesses choose the Pte.Ltd type?

As the most popular type of company in Singapore, there are undeniable reasons why many Singapore citizens and international business owners choose to register this type of company.

Benefits of registering Pte.Ltd include.

2.1. Tax incentives for Start-ups

With proper registration planning and the right support from GLA, Businesses can benefit from the Startup Tax Exemption scheme, which provides a 75% tax exemption on the first SGD 100.000 of taxable income for the first three consecutive years.

Even after the initial start-up phase, companies can still benefit from the Partial Tax Exemption scheme, which provides a 75% tax exemption for the first 10.000 SGD of ordinary taxable income and a 50% tax exemption on the next S$190.000.

That is why many expats often seek the assistance of Global Links Asia to help them gain this competitive tax advantage, which is often overlooked by most other service providers.

2.2. Easy to raise capital

With this type, businesses can raise capital for the company by transferring shares, or issuing future shares to members of the board of directors.

In addition, as a global financial center with a strong presence of banks, venture capitalists and angel investment firms, Holding companies, Enterprises can also easily raise capital through loans, equity investments or private/public funding.

The Singapore government offers various grants and funding programmes to support startups and SMEs. Examples include the Startup SG programme and the Enterprise Development Grant (EDG).

2.3. Limited liability

A private limited liability company is a separate legal entity, meaning that the personal assets of shareholders are protected, separate from the company. Shareholders are only liable for the amount of money they have invested in the company.

This reduces governance risk and makes it safer for individuals to invest and participate in business activities.

2.4. Easy to manage

Pte.ltd’s clear governance structure helps clarify roles and responsibilities for directors and shareholders. This makes managing and operating the business easier, especially for foreign business owners. 

In particular, Singapore's legal framework provides clear guidelines on corporate governance, financial reporting and compliance requirements for this type of entity.

3. Successful and effective process of establishing a Pte.Ltd company in Singapore

To successfully open a Pte.Ltd company in Singapore, Global Links Asia would like to send businesses the following 5-step process:

4. Disadvantages of owning a Pte.Ltd company

Despite possessing many of the above advantages, the Pte.Ltd company type still has some shortcomings that make many business owners not choose this type at the time of company registration. 

Disadvantages include:

4.1. The cost of opening a company is higher than that of a private company or partnership.

Compared to other types of companies such as partnerships and sole proprietorships, Pte. Ltd. has to comply with more stringent legal regulations, which makes the cost of opening a company higher in the initial stages.

4.2. Complicated company closing process

Due to the separate legal entity nature, the process of winding up a Pte.Ltd company must strictly follow the procedure in the Companies Act. Otherwise, the company will have to go through the process of winding up the company which is more costly and complicated.

5. How does Global Links Asia support businesses in establishing Pte.Ltd?

At Global Links Asia, we have over XNUMX years of experience helping SMEs and entrepreneurs expand into international markets. We understand what you need and provide comprehensive support for a smooth, hassle-free share transfer process.

• Consulting and supporting the establishment of Pte.Ltd company in Singapore quickly, effectively and legally.
• Support with nominee director , secretary, and registered address services at a much reasonable price.
• Accounting, financial reporting, and tax optimization as per Singapore accounting standards
• Assistance in opening company bank accounts with licensed physical and digital banks in Singapore 
• Business operation support, including consular legalization, trademark registration, payment gateway setup, and more.

6. Frequently asked questions about Pte.Ltd company type 

Highlights

• Pte.Ltd company type is a type of private limited liability company (LLC) in Singapore. 
• Businesses enjoy tax incentives, limited liability advantages and easy capital mobilization with Pte.Ltd.
• Disadvantages of owning a Pte.Ltd include high initial company opening costs and complicated company closing procedures.
• GLA supports businesses to establish and operate companies in Singapore effectively, at optimal costs, in a complete package, and in compliance with the law.