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Thanks to a unique infrastructure, flexible tax system and minimal bureaucracy, Singapore is a favourable and prestigious country, in which to establish a business.
When setting up a Singapore Business, the most common legal form for foreign investors is the private company limited by shares (Pte. Ltd.). A private limited company is defined as a local incorporated company with no more than 50 shareholders. Shareholders' liability is limited to the amount of their paid-up capital contribution.
There are many advantages of a private limited company for foreign investors. It protects the personal assets of individual investors, unlike proprietorship or partnership, and provides tax benefits under certain conditions. With private limited company, the dividends payable to shareholders are not taxable. Additionally, it allows shareholders and foreign directors to apply for an Employment Pass.
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