. What is an Exempt Private Limited Company (EPC)?
An Exempt Private Limited Company (EPC) is a type of company in Singapore that meets specific criteria, such as having fewer than 20 shareholders (all of whom must be individuals and not corporations) and not having more than 20 shareholders at any time during a financial year.
What are the advantages of setting up an EPC?
Setting up an EPC offers benefits such as limited liability for shareholders, tax advantages, and reduced regulatory requirements compared to larger companies.
How can I register an EPC in Singapore?
To register an EPC, you need to submit an application to the Accounting and Corporate Regulatory Authority (ACRA) in Singapore. You’ll need to provide company details, shareholder information, and comply with the necessary requirements.
Are there any restrictions on foreign ownership of an EPC?
No, there are no restrictions on foreign ownership of an EPC. Foreign individuals and entities can be shareholders in an EPC.
What is the minimum and maximum number of shareholders for an EPC?
An EPC must have a minimum of one shareholder and can have a maximum of 20 shareholders. All shareholders must be individuals and not corporations.
Can an EPC raise capital by issuing shares to the public?
No, an EPC cannot issue shares to the public as it is limited to a maximum of 20 shareholders who must be individuals.
What is the annual filing requirement for an EPC?
EPCs are required to file annual returns and financial statements with ACRA. These documents provide information about the company’s financial position and operations.
Does an EPC have to hold an annual general meeting (AGM)?
Yes, an EPC is required to hold an AGM unless it is exempted under certain conditions. The AGM is an opportunity for shareholders to receive updates on the company’s performance and financial status.
What are the tax benefits for an EPC?
EPCs can enjoy certain tax exemptions and incentives, including partial tax exemptions on chargeable income and exemptions on certain foreign-sourced income under the Singapore tax system.
Can an EPC convert to a non-exempt company in the future?
Yes, an EPC can convert to a non-exempt company if it no longer meets the criteria for exemption, such as having more than 20 shareholders.
Can an EPC engage in any business activities?
Generally, an EPC can engage in various business activities as long as they are legal. However, certain regulated activities might require additional licenses or permits.
Can I use the EPC structure for holding assets and investments?
Yes, an EPC structure can be used for holding assets, investments, and conducting business activities. However, it’s important to consider tax and legal implications based on your specific situation.
How can I maintain compliance with EPC regulations?
To maintain compliance, ensure timely filing of annual returns and financial statements, hold AGMs when required, and adhere to any changes in regulations or requirements.
Remember to customize these FAQs to accurately reflect the specifics of your Exempt Private Limited Company and its operations in Singapore.