Features of the private company

A company may be formed by filing prescribed documents, including the memorandum and articles of association, with ACRA (Singapore’s Accounting and Corporate Regulatory Authority) and paying a fee. The memorandum must set out basic details about the company: its name, the amount of its share capital and whether the liability of its members is to be limited or unlimited. A company can be private, meaning that it may not offer shares to the public, or public, meaning that it can.

The basic features of the private company are as follows.

  • It can be formed with a single member.
  • It has legal personality and can sue and be sued in its own name.
  • It has perpetual succession.
  • It must appoint directors to manage its affairs, at least one of whom must be ordinarily resident in Singapore.
  • Its members and directors are not, generally, personally liable for the debts of their company.
  • Its directors are subject to a duty to act honestly and to use reasonable diligence in the discharge of their duties.
  • It may grant charges over its assets as collateral for credit; where it does it must inform ACRA and keep an internal register of all charges granted.
  • It is taxed on the profits it makes as a corporate body.These features apply to all private companies, whether or not they are EPCs.
 
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