What is Exempt Private Company (EPC)

A private limited company is defined in the Singapore's Companies Act as follows: 

	There are no corporate shareholders
	Shareholders are less than 20

Benefits 

1. If the company turnover is less than $5 million, it can be exempt from audit requirements
2. If it is solvent, an EPC need not file their accounts with ACRA, which translate to greater privacy for the shareholders of the company

A non-exempt private company or insolvent company has to file their financial statement in XBRL format. Furthermore, if an EPC has a turnover less than $5 million, the company can opt not to be exempted  from audit

A exempr private company therefore has a lower cost of compliance compared to a non-exempt private company.

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