Company VS Sole Proprietorship VS Limited Liability Partnership (LLP)

In a nutshell

Key differences between Company VS Sole Proprietorship VS Limited Liability Partnership (LLP) in Singapore

Characteristic
Pte Ltd Company
Partnership (LLP)
Sole Proprietorship
Legal Status
Separate legal identity
Separate legal identity
Not a separate legal identity
Maintenance Requirements
Complex structure with annual compliance obligations and paperwork. Let us help!
Less complicated structure with annual compliance obligations and paperwork. Let us help!
Minimal compliance and paperwork.
Debt & Liabilities Ownership
Limited Liability. Limited to shareholder’s investment in the company.
Limited Liability. Limited to shareholder’s investment in the company.
Unlimited Liability. The owner is personally accountable for debts and losses.
Succession Abilities
Continues even in death or retirement of the members.
Continues even in death or retirement of the members.
No enduring structure and no perpetual succession.
Ease of Raising Capital
Easier to raise capital due to credibility of a registered Company
Difficult to raise capital. Have to remain limited to private finances and partners’ contributions.
Difficult to raise capital. Have to remain limited to private finances and partners’ contributions.
Registration Timeline
1 – 2 day(s)
1 – 2 day(s)
1 – 2 day(s)
Advantages
Low cost setup with limited liability protection.
Simplest and lowest cost to setup.
Disadvantages
Annual Regulatory Compliance obligations such as Annual Filings, AGMs, etc.
Taxed as an individual and requires paying a personal income tax rate which is higher than corporate tax.
Individual Tax, and unlimited liability.
Suitable for
Businesses with projected growth and planned longevity.
Professional fields – accountancy, law practise and architecture.
Individual with low risk.

Setting up a business for a Singapore resident is relatively straight-forward. There are 3 most common business entities available in Singapore –– sole proprietorship, limited liability partnership and private limited company.

Looking to start a business?

Our company incorporation and registration services allow you to easily and reliably register your business.

If would like to convert your Sole Proprietorship to a Private Limited Company, contact us!

Starting a business doesn't need to be complicated.

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