If the number of shareholders is 20 or less, with no corporation holding any beneficial interest in the company’s shares, the company is known as an EPC
Singapore (PRWEB) September 09, 2014
Singaporecompanyincorporation.sg, a website for company registration services, has published a comprehensive guide on how to set up a Singapore exempt private company (EPC). It is currently the most preferred type of business entity in the country because of reduced compliance requirements, more freedom in financial loan activities, and tax-exemptions granted in the start-up stage.
Notably, while the incorporating procedure for an EPC is the same as any other company in Singapore, the difference lies in the number of shareholders and the shareholding structure.
“If the number of shareholders is 20 or less, with no corporation holding any beneficial interest in the company’s shares, the company is known as an EPC,” explained Ms. Cheryl Lee, manager at Singaporecompanyincorporation.sg.
As regards to the statutory compliance requirements, the current legislation exempts solvent EPCs, with an annual turnover of less than S$5 million, from annual audit and accounts submission requirements. Instead, such EPCs just have to submit a solvency declaration signed by the company directors and company secretary in the prescribed form.
But EPCs are still required to maintain proper accounting records, prepare and present financial statements in compliance with the Singapore Companies Act and the Singapore Financial Reporting Standards (FRS), the guide notes.
“An EPC also enjoys greater degree of independence as compared to other types of companies. Our guide explains how an EPC is exempted from a specific requirement under the Companies Act, by which companies are prohibited from giving loans to another (related) company, or to provide guarantees and/or security for loans obtained by another company, if the director of the first company has a 20 percent or more interest or shareholdings in the second company,” added Ms. Lee.
The final section of the guide details the higher tax exemptions enjoyed by an EPC under the Start-up Tax Exemption (SUTE) scheme. Under the scheme, tax exemption is given to an EPC on normal chargeable income of up to S$300,000 for each of the first three consecutive years of its operation.
To view the full guide, please visit http://www.singaporecompanyincorporation.sg/how-to/incorporate/exempt-private-company/
SingaporeCompanyIncorporation.sg is a portal for entrepreneurs and professionals who want to have a presence in Singapore. It is also a provider of company incorporation, as well as the related taxation and relocation services in Singapore.
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