A company is a business entity registered under the Companies Act, Chapter 50. It has a legal personality, that is, it has rights to own properties, has perpetual succession and can sue or be sued in its own name. It usually has the words ‘Pte Ltd’ or ‘Ltd’ as part of its name. There are three main types of companies in Singapore:
1. Private Company – Has 50 or fewer shareholders and restricted rights in share transfers
2. Public Company – Has more than 50 shareholders and can offer shares and debentures to the public
3. Foreign Company – Is a branch of a foreign company registered in another country
The shareholders of a company are not personally accountable for the debts and losses of the company.