The Exempt Private Limited Company (EPC), one of the business entity type, is one of the most registered entity types in Singapore.
It offers a broad range of possibilities for both local and foreign type businesses.
The EPC as the entity type stands for has an advantage for business owners in that the EPC is exempt from statutory annual audits.
This exemption enables the protection of the shareholders.
In the case of the EPC, the shareholders are also the directors of the company which removes the necessity of a statutory audit.
Becoming an EPC is relatively easy.
It is important to have all the necessary information to become an EPC successfully.
The Singapore Companies Act Chapter 50 governs all EPCs.
Below is a list of the necessary information you need to establish an EPC in Singapore.
What You Need For an EPC
1. Singapore Registered Office Address
All EPC requires a Singapore registered office address before registration.
Registration cannot be issued with a P.O. Box. The EPC must have a physical office in Singapore with a local address.
2. Appointed Company Secretary
Within six months of establishing an EPC, the business must appoint a company secretary.
A company is not allowed to be in place of the individual.
The secretary needs to be a local person.
Some companies can help you find a local company secretarial service provider if you need one.
3. 1st Shareholders’ Meeting
Within 18 months from the day of incorporation of an EPC in Singapore, the EPC has to have its first shareholder’s meeting.
The second annual shareholders meeting has to be held within 15 months after the very first one.
It is possible for shareholders to vote from outside of Singapore as well as have a shareholder’s meeting somewhere other than Singapore.
4. No Minimum Capital Requirement
The capital can be in any currency, foreign or local for the share capital.
For an EPC there is no minimum capital requirement.
5. Appointment of Directors
A local director is required for proper filing for the registration of an EPC.
Beyond the one local director, the EPC can have foreign directors as well.
It is possible that a person can be a shareholder and a director.
6. Annual Returns to ACRA
Filing financial statements are of the utmost importance to keep everything running smoothly for an EPC in Singapore.
EPC’s annual return must be filed within one month after the annual meeting.
Accounts do not have to be filed only returns.
The returns will be filed with the registrar of companies. The annual tax return needs to be filed by 30 November of the following tax year.
An Estimated Chargeable Income and the EPC’s revenue amount has to be declared with the IRAS.
These reporting’s have to be filed within three months of the end of the annual financial cycle.
An EPC can file a declaration of solvency. This document must be signed by both EPC’s director and secretary.
The annual turnover for EPC’s is usually five million dollars and below.
Even though EPC’s do not have to turn over their account records, they are required to keep strict accounting records, up to date and balanced.
There are many great benefits to registering an EPC in Singapore.
Below are some of the significant advantages you and your shareholders can enjoy as a registered EPC in Singapore.
The Singapore Companies Act (SCA) has special provisions in its rules and regulations about parameters for shareholders and the security of their investment.
The SCA brings a lot of advantages for companies and their shareholders by creating an environment for cost-efficient benefits and security for shareholders and their investment.
If a shareholder owns more than five percent of an Exempt Private Limited Company’s share, then they can ask for an audit of the EPC to ensure that their investment is being used in the wisest possible way.
Whatever reason the shareholder or the registrar have they can ask for an audit.
This provides the greatest quality in business practices for everyone involved.
Advantages of an EPC
1. As an EPC the shares or business itself can be transferred to different ownership.
2. It is possible for administrative persons of an EPC to take loans out from the company to leverage their earnings and capital.
3. As a result of not having to be subject to audits, the company as a whole benefit from not undergoing audit fees.
4. As an EPC you are both a legal entity and hold business credibility around the world.
5. EPC’s in Singapore hold asset protection for shareholders and can have full tax exemptions up to three hundred thousand dollars for the first three years of being registered as an EPC.
6. An EPC in Singapore is very attractive because it safeguards the interest of the shareholders.
There are so many great advantages legally, financially, and professionally to registering your company as an Exempt Private Limited Company in Singapore.
7. An Exempt Private Limited Company in Singapore allows a lot of privacy to owners and shareholders which can be very attractive to certain businesses.
Owners and shareholders can ensure that Singapore has their interests of activities in mind.
8. Singapore registrar has done their best to create laws and regulations to help professional companies feel comfortable and protected in the Singapore Business environment.
When looking for a foreign country to do business with, Singapore is a very desirable city for many international and local business to conduct professionally profitable companies that thrive and benefits from the Singapore business laws.
9. In the heart of Asia Singapore is an excellent choice for businesses wanting to start or expand with an Exempt Private Limited Company.
The advantages are off the charts and professionals who have already begun Exempt Private Limited Companies in Singapore have benefited from all the advantages outlined above.
If you are a foreign company in search of expanding your business and widening your consumer base, then you will do yourself justice by investigating Singapore and our work community.
The registrar offers the Exempt Private Limited Company for your convenience and the greatest profitability you can afford.
Should you need assistance or would like to find out more about Company Secretarial services in Singapore, please send an email to Contact@AccountingSolutionsSingapore.com, and our business advisor will contact you.