In private companies, the maximum number of shareholders is limited to 50 and the memorandum and constitution restricts the right of its members to transfer their shares in the company. A private company limited by shares can be classified as an exempt private company.
The key characteristics of an exempt private company are:
a) no more than 20 shareholders; and
b) all the shareholders are individuals.
Exempt private companies with annual revenue of less than S$10 Million are exempted from audit requirements and are not required to file financial statements with the ACRA.