Exempted private limited company means a private limited company incorporated in Singapore and:

1. The company has no direct or indirect institutional shareholders. (All shareholders of the company are natural persons)
2. The company has less than or equal to 20 shareholders.
3. The company is considered a qualified exempt company.

Qualified exempted companies in Singapore can enjoy many things to do:

1. Government compliance requirements for companies are relatively simple.
2. Companies can submit XBRL filings differently.
3. The annual audit of the company is not required to submit the company’s financial statements.
4. More lending and financial flexibility: According to the Singapore Companies Act, if a director of the first company has any interest or equity in a second company, the company must pass a resolution to provide a loan to another (affiliated) company, or for The loan obtained by another company was secured. The Companies Act also prohibits companies from providing loans to their directors, unless there are specific reasons. Exempting private companies can circumvent these restrictions.