Overview of company structures

What is a Private Limited Company?

The Singapore private limited company is subject to the Companies Act (Chapter 50).

A private limited company is a body corporate with separate legal personality, governed by its board of directors in accordance with its constitution.

An investor participates in a private limited company as a member, with the liability of such member limited to the amount (if any) unpaid on their shares in the private limited company. The register of members of a private limited company is available for public inspection. A private limited company must send a copy of its constitution to any member on request.

A private limited company may only pay dividends out of profits (not capital). A return of capital may be achieved through a capital reduction, a share buyback or redemption of redeemable preference shares (however, various requirements and restrictions apply to any such capital reduction exercises).