How does Singapore tax a Pte Ltd?

Profits are taxed at 17 percent corporate tax. Newly incorporated qualifying companies receive a tax exemption on the first 100,000 SGD of normal chargeable income at 75 percent, and a further 50 percent exemption on the next 100,000 SGD, for the first three years of assessment. There is no capital gains tax, no dividend withholding tax, and a wide tax treaty network of over 90 jurisdictions.

Can a non-resident own 100 percent of a Pte Ltd?

Yes. Foreign individuals or companies can hold all shares in a Singapore Pte Ltd. The only local requirement is the resident director and a Singapore registered office. Banking has tightened: opening a corporate account at DBS, OCBC, or UOB increasingly requires the foreign UBO to visit Singapore, while fintech alternatives such as Aspire and Wise often onboard remotely.

Glossary/Entity Types/Private Limited Company (Singapore)

Entity Types

Private Limited Company (Singapore)

Pte Ltd

Private Limited Company (Singapore) is the Singapore private limited company, the dominant entity form for both local SMEs and regional headquarters in Southeast Asia.

What Pte Ltd is

A Private Limited Company (Pte Ltd) is a Singapore company incorporated under the Companies Act 1967 and registered with the Accounting and Corporate Regulatory Authority (ACRA). The company is a separate legal person, members enjoy limited liability, and there is no minimum paid-up capital (1 SGD is enough at incorporation). Membership is capped at 50 shareholders.

Incorporation is fully online via the BizFile portal and usually approved within hours. The company must have at least one ordinarily-resident director (Singapore citizen, permanent resident, or EntrePass holder), a company secretary appointed within six months, and a registered office in Singapore.

Annual filing of audited or unaudited financial statements depends on small-company exemptions defined by revenue, assets, and headcount thresholds.

A Pte Ltd is taxed under the Singapore corporate tax system at a headline rate of 17 percent, with partial exemptions and start-up tax exemption for the first three years of assessment that significantly reduce effective rates on initial profits.

There is no capital gains tax and no tax on most foreign-source income remitted under the resident-company exemption regime, making Singapore a popular regional holding location.

When you will meet Pte Ltd

You will meet the Pte Ltd when launching a Southeast Asia regional HQ, expanding from a US Delaware C-corp into Asian markets, or partnering with Singapore-based startups and family offices. Founders raising from Singapore-based VCs (Sequoia SEA, Vertex, East Ventures, etc.) often hold the operating business under a Singapore Pte Ltd.

The form is also widely used for group treasury, IP holding, and trade companies covering Asia.

Where this comes up in our guides