If you’re a business owner in Singapore, you’ve likely heard the term exempted private company (EPC)— but what does it actually mean? And why does it matter when it comes to financial reporting and compliance?
In this article, we explain what qualifies as an exempted private company in Singapore, the key advantages it offers, and whether your business should consider voluntarily filing financial statements even when not required.
What Is an Exempted Private Company?
An exempted private company in Singapore is a private limited company that meets the following criteria:
- Has 20 or fewer shareholders
- Has no corporate shareholder (i.e., no company holds its shares)
This structure is especially common among SMEs, family-run companies, and startups and enjoys streamlined compliance requirements compared to other private limited companies.
Key Benefits of Being an Exempted Private Company
An EPC enjoys several compliance and cost-saving advantages:
Filing Exemptions with ACRA
If the company also qualifies as a small company (defined as having annual revenue, total assets under S$10 million, and fewer than 50 employees), it is:
- Exempted from submitting detailed financial statements to ACRA
- Required to prepare them internally but not disclose them publicly
Greater Privacy
Because an EPC doesn’t need to file financials with ACRA, your revenue, profit, and business performance remain private.
Lower Compliance Costs
Reduced audit and filing requirements mean lower professional fees, fewer document submissions, and simplified reporting.
Should You Voluntarily File Financials since exempted?
While you’re not required to file financial statements, some EPCs still choose to submit them voluntarily. Here’s why:
Lender and Investor Confidence
Having your financials officially filed with ACRA adds credibility — which can speed up loan approvals or due diligence.
Business Tenders and Government Grants
Many government agencies and corporate clients request financials before awarding grants or contracts. A company that voluntarily files shows transparency.
Future-Proofing for Expansion
If your company intends to raise funds, expand internationally, or attract partners, having a public filing history helps smoothen the process.
Risks of Voluntary Filing
While voluntary filing offers credibility, it comes with trade-offs:
- Loss of privacy — Financials become accessible on BizFile
- Extra admin — Requires formatting, sign-offs, and may increase professional service fees
Final Thoughts
Being classified as an exempted private company in Singapore offers real advantages — from reduced filing obligations to greater confidentiality. But depending on your future plans, voluntarily filing your financials may be worth considering.
At CapitalGuru, we help SMEs assess their compliance status, funding readiness, and strategic growth path. Whether you’re preparing for your first loan or planning to scale, knowing your obligations as an exempted private company is a smart first step.