Definition of a Public Company Limited by Guarantee
It is a separate legal entity, separate and distinct from the individuals who are involved in it and enjoys the same rights that a private limited company may have in accordance with the Companies Act, Cap 50.
It does not have a share capital.
It has members who will undertake to contribute a minimum amount of S$1.00 to the liabilities of the Company in the event the Company is wound up.
Pros and Cons
Exempt from income tax if surplus funds are from members’ contributions.
Can apply to be registered as a charitable organisation or institute of public character.
Subject to more annual disclosure obligations and reporting requirements.
Professional assistance required for incorporation and ongoing statutory compliance
Must have at least 1 local resident director, 1 member, and qualified Company Secretary.
Must have a customised Memorandum & Articles of Association setting out the objects and by-laws.
Must submit audited financial statements annually unless it is dormant.
Must hold annual general meetings and subsequently lodge annual returns with the Accounting and Corporate Regulatory Authority of Singapore.