The most common type and the most popular business entity in Singapore, as well as around the world, is a Private Limited Company. Such companies have a separate legal status from their directors and shareholders, who have limited liabilities for the debts and losses of the company. A Private Limited Company is also known as 'Pte Ltd' or 'Ltd' and has a different set of rights. Such companies can own or sell properties and can sue or be sued in its own name.

In many European countries and the United States, it is commonly known as a corporation. It can have a minimum of 1 and a maximum of 50 shareholders. All partners of a Private Limited Company have limited liability. When you are newly incorporated and own a Pte. Ltd. company, then you are eligible for local tax exemption and incentives. However, if you have a subsidiary company with at least one individual shareholder having the shareholding capacity of 10% or more is entitled to all taxes.