Of all the choices you make when deciding on incorporating an entity in Singapore, one of the most important factors is the type of business structure (i.e. legal entity) you choose for your business. Your decision can affect the amount you pay in taxes, the image and perception of your business among your clients and suppliers, the amount of paperwork your business is required to do, the personal liability you face, the ability to borrow money, and the possibility to expand your business.
The following are the business entity types in Singapore:
- Sole Proprietorship
- Limited Liability Partnership
- Limited Partnership
|Type of entity||Information on business structure|
|Limited Liability Partnerships (LLP)|
|Local Private Companies||Private Limited Company|
Exempt Private Limited Company
|Local Public Companies||Companies limited by share|
Companies limited by guarantee
Who can Register?
- Individuals and companies may set up and own a sole-proprietorship or partnership.
- A sole-proprietorship or partnership, not being a separate legal entity, cannot register another sole-proprietorship or partnership.
- A foreign company also cannot register a sole-proprietorship or partnership unless it has registered itself under the Companies Act, Cap. 50.
It is relatively simple for a Singapore resident to set up a business in Singapore. The first consideration is to decide on the right entity that will meet your business needs. The most common three business entities available in Singapore are sole proprietorship, limited liability partnership and private limited company.
Contact us to learn more about the type of entity that suits your business the best.