Maximum number of shareholders is limited to 50 and the memorandum and articles of association restricts the right of its members to transfer their shares in the company. A private company limited by shares can be classified as a exempt private company.
The key characteristics of an exempt private company is:
a. no more than 20 shareholders; and
b. all the shareholders are individuals.
Exempt private companies with an annual revenue of less than S$5 Million are exempted from audit requirements and are not required to file financial statements with the ACRA.
It is also exempted from prohibitions against loans to its directors or to companies related to its directors.