Overview of business form in Singapore

Open a company in Singapore

There are five types of business entities in Singapore: Sole-proprietorship, Partnership, Limited Partnership, Limited Liability Partnership, and Company which differ with each other in legal status and registration requirements. For foreigners, The most common and most preferred type of entity among entrepreneurs in Singapore is the Private Limited Company. The shares of a Private Limited Company are not made available to the general public, all of its shares are held privately. The number of shareholders in a Private Limited Company must not be more than 50. In Singapore, the names of this type of entity have the suffix ‘Private Limited’ or ‘Pte Ltd’.

Types of business entities in Singapore

Global Link Asia Consulting lists these five types along with some factors to help you compare them effectively.

Types: Sole-proprietorship, Partnership, Limited Partnership, Limited Liability Partnership, and Company.

Factors to compare: owners, registration requirements, formalities, and expenses, along with notes from me.

Sole proprietorship Partnership Limited Partnership
(LP)		 Limited Liability Partnership (LLP)

Company
(Pte Ltd or Ltd)

Owned by 01 person

  • Singapore citizen/ Singapore permanent resident/ EntrePass holder.
  • If foreigners, you must appoint an authorized local representative.
 By 2 – 22 persons

  • Singapore citizen/ Singapore permanent resident/ EntrePass holder.
  • If foreigners, you must appoint an authorized local representative.
 At least 2 persons, no maximum limit.

  • One manager ordinarily resides in Singapore.
  • If foreigners, you must appoint an authorized local representative.
 At least 2 persons, no maximum limit.

  • One manager ordinarily resides in Singapore.
 At least 2 persons, no maximum limit. 

  • One director ordinarily resides in Singapore.
  •  If foreigners wish to act as a local director, they must apply for an EntrePass and Employment Pass.
The owner is personally liable for the debts and losses of the business. Partners individually liable for the partnership’s debts and losses incurred by others. General partner individually liable for debts and losses of the LP. Limited partners are not. Partners not individually liable for debts and losses of LLP incurred by others. Members are not individually liable for debts and losses of the company.
Easy to set up Easy to set up  Easy to set up Easy to set up

Easy to set up

The best kind for foreigners

There is a fuller version of the comparison from ACRA, in case you wish to learn more details.

How to choose the right business type

When we have a directly consulting conversation, based on the information you share, we will advise you about the most appropriate structure that meets your business needs.

But first, please ask yourself the following questions:

  • How much money/ cash you are going to invest in?
  • How many owners/ partners will be in the business?
  • If you are a foreigner, do you plan to relocate to Singapore?
  • What liabilities, responsibilities, and risks are you prepared to take?
  • What are your advantages and disadvantages compared to your competitors?

Read here to find out more about how to start to set up a company in Singapore or just contact us immediately for direct advice!

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