The most preferred and flexible structure for incorporating a business entity in Singapore is to register as a private limited company.
Customers and vendors, especially those from medium to large-scale businesses including government bodies, prefer to deal with a Private Limited/Limited company as the business is deemed more trustworthy and credible.
A private limited company is limited by shares and has its own legal identity separate from its shareholders. It is recognized as a taxable entity in its own right where there is a separation between personal and business assets. Therefore shareholders will not be held accountable for the company’s debts and losses beyond their amount of share capital.
Hence this translates to more business opportunities as compared to other setup options. In addition a private limited company enjoy local tax exemptions, applicable only to newly registered and qualified companies in Singapore.