Why Many First-Time Entrepreneurs Choose Private Limited Companies in Singapore
So, you’ve got a business idea—and you’re ready to make it official. The first step? Deciding what kind of business entity to register.
In Singapore, the most popular choice for first-time founders is the Private Limited Company (Pte Ltd)—and it’s not hard to see why. It’s flexible, professional, and built for scale.
Here’s what makes it such a go-to for entrepreneurs who mean business.
1. Limited Liability = Peace of Mind
With a Pte Ltd, your company is a separate legal entity from you. That means:
• If your company is sued, your personal assets are protected.
• If the company owes money, creditors can’t touch your savings or home.
In contrast, if you’re a sole proprietor, you and your business are one and the same—and that’s risky.
2. It Looks Legit (Because It Is)
Incorporating a company shows that you’re serious. You’ll find that:
• Partners and suppliers are more likely to trust you.
• Investors and banks may require a company structure.
• You can sign contracts and issue invoices as a business—not just an individual.
✅ Want to know more about what comes after incorporation? Here’s your checklist.
3. It’s Tax-Efficient
Singapore’s corporate tax rate is already one of the lowest in the world at 17%. But new companies enjoy even more perks:
• 75% exemption on the first $100,000 of chargeable income (for the first 3 years)
• Partial exemption beyond that
A Pte Ltd lets you tap into these schemes—plus you can pay yourself a salary or dividends, which creates even more tax flexibility.
4. You Can Bring in Co-Founders and Investors
Want to grow your team or raise money?
With a Pte Ltd, you can:
• Issue new shares to co-founders, early employees, or investors
• Easily transfer shares if someone leaves
• Formalize roles with proper shareholder agreements
Try doing that as a sole proprietor—good luck.
5. It’s Easier to Scale Up or Sell Down the Road
Planning for an exit? A Pte Ltd gives you options:
• Merge or be acquired
• List your company one day (hey, dream big)
• Sell your shares and walk away
Even if you’re not there yet, structuring it right from day one makes all the difference.
6. It’s Not That Complicated to Run
Yes, there’s a little more admin. You’ll need:
• A corporate secretary (we can help with that 😉)
• To file annual returns
• To keep basic financial records
But all of this is manageable—and we make it painless with fuss-free support.
Ready to Set Up Your Pte Ltd? We’ll Do It for Free
We get it. You’d rather focus on launching your product or closing your first sale—not on forms and filings.
That’s why Paperwork.sg offers:
✅ Free company incorporation (just pay the ACRA fee of S$315)
✅ Free corporate secretary service for the first year
✅ Support from real people, not robots