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Corporate vs Individual Shareholder (SG)

Corporate vs Individual Shareholder (SG)

The main difference between a corporate shareholder and an individual shareholder in Singapore lies in their identity:

  • Individual shareholder: A natural person, 18 years old or above, who owns shares in a company.

  • Corporate shareholder: A business entity, like another company, limited liability partnership, or even a non-profit organization, that owns shares in another limited company.

Interestingly, their rights as shareholders are quite similar:

  • Limited liability: Both are only liable for the amount they paid for their shares. The company's debts won't affect their personal assets (unless they provided a personal guarantee).

  • Shareholder rights: These are defined by the company's constitution and attached to the specific shares they hold. They might include voting rights, receiving dividends, and attending shareholder meetings.

Here's an additional point to consider:

  • Exempt Private Limited Company (EPC): This type of company can only have up to 20 shareholders, and all of them must be individual shareholders. No corporate entities are allowed.

For most situations, though, both individual and corporate shareholders can participate in Singapore's companies.

The difference between corporate and individual shareholders in Singapore:

  • Individual shareholder: A natural person who owns shares in a company.

  • Corporate shareholder: A business entity that owns shares in another company.

Both individual and corporate shareholders enjoy similar rights, such as limited liability and voting rights (depending on the share class they hold).

Corporate vs Individual Shareholder (SG)


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