Limited Liability Company (LLC) is a business form with a separate legal entity from its owners and directors. It is incorporated by registering with ACRA under the Singapore Companies Act. The liability of the shareholders is limited to the percentage of share capital paid up by them. An LLC is a separate legal entity that can enter into contracts, own assets, sue, or get sued in its own name. The company has a perpetual succession until wound up or struck off.
Types of Limited Liability Company (LLC)
Private Limited Company
A private limited company has 50 or fewer members, and its shares are not traded publicly. The shareholders can either be individuals or corporates. The company name is suffixed with ‘Private Limited’ or ‘Pte Ltd’ to denote it’s a private limited company.
Exempt Private Limited Company (EPC)
An exempted private limited company (EPC) is a private limited company with less than 20 shareholders. The company can not have any corporate shareholders. EPC is exempted from statutory annual audit and corporate tax for the first three consecutive Years of Assessment (YA).
There are two types of public companies:
Public Company Limited by Shares
A public company limited by shares is a form of business where there are more than 50 shareholders. The shares are transferable and traded publicly on a stock exchange. The name is suffixed by “Ltd” to denote it’s a public company limited by shares.
Public Company Limited by Guarantee
A public company limited by guarantee is generally incorporated by entities involved in non-profit and non-commercial activities like charitable bodies, religious trusts, trade associations, and professional societies. There are no shareholders in the company but only members. In the event of winding up of the company, the members are only liable to pay the amount stated in the Memorandum of Association. The amount is equivalent to the contribution undertaken to the assets of the company.