An Exempt Private Company (EPC) is a private company in Singapore that is exempt from the requirement to prepare and file financial statements with the Accounting and Corporate Regulatory Authority (ACRA). This means that an EPC need not comply with the financial reporting requirements under the Companies Act. To set up an EPC in Singapore, the company must meet certain criteria stipulated by the Registrar of Companies.
What is an Exempt Private Company?
An Exempt Private Company (EPC) is a private company in Singapore that is exempt from certain requirements under the Companies Act. For example, an EPC is not required to have its financial statements audited.
To qualify as an EPC, a company must meet all of the following criteria:
- The company must be a private company
- The company must have no more than 20 shareholders
- All shareholders must be individuals who are citizens or permanent residents of Singapore
- The company cannot be a subsidiary of another corporation
- The total share capital held by non-residents must not exceed 30%
- The shares in the company cannot be listed on any stock exchange.
An EPC can enjoy certain benefits, such as reduced compliance costs and greater flexibility in corporate governance.
Advantages of setting up an Exempt Private Company
An Exempt Private Company (EPC) is a company that is not required to hold an annual general meeting (AGM), prepare audited financial statements or appoint auditors. This type of company is suitable for businesses with no more than 20 shareholders.
The main advantages of setting up an EPC are:
- There is less compliance burden and paperwork involved in running the company.
- Shareholders have greater control over the affairs of the company as they do not need to comply with certain statutory requirements.
- An EPC can be set up quickly and easily.
However, there are some disadvantages to setting up an EPC which include:
The affairs of the company are less transparent as there is no requirement to prepare audited financial statements or hold AGMs.
How to set up an Exempt Private Company
An Exempt Private Company (EPC) is a private company in Singapore that is exempt from the requirement to prepare and file annual financial statements with the Accounting and Corporate Regulatory Authority (ACRA).
EPCs are required to comply with certain conditions set out by the Singapore Companies Act. For example, an EPC must have no more than 20 shareholders, its shares must not be listed on any stock exchange, and it cannot offer its shares to the public.
To set up an EPC in Singapore, you will need to incorporate your company with ACRA and submit the necessary paperwork. You will also need to appoint at least two directors, one of whom must be a resident of Singapore. Once your company is incorporated, you can apply for EPC status by submitting the relevant form to ACRA.
In conclusion, setting up an Exempt Private Company is a simple process that can be completed in a few steps. First, decide on the company’s structure and what type of business it will be. Next, file the necessary paperwork with the state or territory government. Once the company is registered, you will need to obtain an Australian Business Number from the Australian Taxation Office. Finally, open a bank account in the company’s name and you’re ready to start business!