If you’re considering starting a business in Singapore, you’ll need to decide whether to register your company as a public or private limited company. In this article, we will focus on the Singapore public limited company, its characteristics, and how to register one. We’ll also explore the difference between public and private limited companies in Singapore.
Singapore Public Limited Company
A public limited company (PLC) is a type of business structure in Singapore that is owned by its shareholders. Unlike a private limited company, a public limited company can offer its shares to the public and may be listed on the Singapore Exchange (SGX).
Characteristics of the Singapore Public Limited Company
Here are some of the key characteristics of a Singapore public limited company:
- Shareholders: A public limited company can have an unlimited number of shareholders, who can be individuals or corporate entities.
- Limited liability: Like a private limited company, a public limited company provides limited liability protection to its shareholders. This means that the shareholders’ personal assets are protected in the event of the company being unable to pay its debts.
- Legal personality: A public limited company has its own legal personality, which means it can own property, enter into contracts, and sue or be sued in its own name.
- Share capital: A public limited company must have a minimum share capital of $50,000, with at least 25% of the shares paid up in cash or other valuable consideration.
- Directors: A public limited company must have at least two directors, with at least one of them being a Singapore resident. The directors are responsible for managing the company and making decisions on behalf of the shareholders.
- Company secretary: A public limited company must also have a company secretary, who is responsible for ensuring that the company complies with the relevant laws and regulations.
Difference Between Public and Private Limited Companies in Singapore
The main difference between public and private limited companies in Singapore lies in their ability to offer shares to the public. Private limited companies are not allowed to offer their shares to the public, while public limited companies can. Additionally, public limited companies are required to have a minimum share capital of $50,000, while private limited companies have a minimum share capital of only $1.
Another difference between public and private limited companies in Singapore is the number of shareholders they are allowed to have. Public limited companies can have an unlimited number of shareholders, while private limited companies are limited to a maximum of 50 shareholders.
How to Register a Singapore Public Limited Company
To register a Singapore public limited company, you will need to follow these steps:
- Choose a company name: You will need to choose a unique name for your company. You can check the availability of a name on the Accounting and Corporate Regulatory Authority (ACRA) website.
- Prepare the necessary documents: You will need to prepare the following documents:
- Memorandum and Articles of Association
- Identification documents for the directors, shareholders, and company secretary
- Proof of registered office address
- Register with ACRA: You can register your public limited company online through ACRA’s website. The registration process typically takes 1-2 days, and you will need to pay a registration fee.
- Obtain any necessary licenses or permits: Depending on the nature of your business, you may need to obtain certain licenses or permits before you can start operating.
- Issue shares: Once your company is registered, you can issue shares to your shareholders. If you plan to list your company on the SGX, you will need to comply with the relevant listing rules and regulations.
Conclusion
In conclusion, a Singapore public limited company is a type of business structure that is owned by its shareholders and can offer its shares to the public. It has its own legal personality and provides limited liability protection to its shareholders. To register a public limited company in Singapore, you will need to meet certain requirements and provide the necessary documents. If you’re unsure about the process, it’s recommended to engage the services of a professional firm to assist you with the registration.
