How to determine a holding company type

How to determine a holding company type
  • Written by
  • Huan Koh
  • Published on
  • Jul 16, 2023
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By default, the holding company type is pre-determined as a Pte Ltd (Private company limited by shares). 

In Singapore we have 2 types of Pte Ltd, namely;

  1. Exempt private company limited by shares
    • Most common company type in Singapore
    • Name ends with “Pte Ltd”
    • Can have a maximum of 20 shareholders
    • No shareholder is a corporation
    • Has a share capital
    • No requirement to audit unless it has over SGD 5mil in revenue and/or assets
    • Easy financial reporting, no requirement to upload financial statements when filing annual return
  2. Private company limited by shares
    • Second most common company type in Singapore
    • Name ends with “Pte Ltd”
    • Can have a maximum of 50 shareholders
    • Shareholders can be individuals or corporations
    • Has a share capital
    • No requirement to audit unless it has over SGD 5mil in revenue and/or assets

Therefore, since your holding company is a Pte Ltd, it  is a legal body corporate. That means it can only be sued under its own name (Pte Ltd name), and not individually (directors or shareholders), unless there is a fraud or criminal investigation. It is the safest form of ownership since liabilities are limited. 

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