Types Of Company Available
Comparison: Singapore LLC vs LLP vs Sole Proprietorship
Comparing Factors |
LLC (Pte. Ltd) |
LLP |
Sole Proprietor
|
Legal Status |
Separate legal identity |
Separate legal identity |
Not a separate legal identity |
Debt & Liabilities Ownership |
Limited Liability. Every shareholder’s extent of liability is limited to his investment in the company |
Limited Liability. Every partner’s liability is limited up till the extent of his investment in the LLP |
Unlimited Liability. The owner has to bear the responsibility and is personally accountable for debts and losses |
Succession Abilities |
Not limited to the death or retirement of the members, has an enduring structure |
Not limited to the death or retirement of the members, has an enduring structure |
Lack of enduring structure and perpetual succession |
Ease of Raising Capital |
Easy to raise capital, since banks and financial institutes view credibility in an LLC |
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 days |
1-2 days |
1-2 days |
Taxation Regime |
Profits are taxed at corporate tax rate, i.e. below 9% for profits up to SGD 300,000 and capped at 17% for profits above SGD 300,000 |
Profits are distributed amongst the partners, and they are taxed at the personal income tax rate, which is a tier-based regime |
Profits are distributed amongst the partners, and they are taxed at the personal income tax rate, which is a tier-based regime |
Transference of Ownership |
Easy to transfer partial or full ownership of the company, by simple transfer of shares |
Difficult to transfer the ownership of business. Cannot be sold as a whole, i.e. have to individually sell each of the assets, licenses and permits |
Difficult to transfer the ownership of business. Cannot be sold as a whole, i.e. have to individually sell each of the assets, licenses and permits |
Maintenance Requirements |
More complex structure, hence the need of major setup/compliance costs and paperwork |
Moderate setup, hence the compliance costs and paperwork are comparatively lesser than an LLC |
Minimum setup, hence the compliance costs and paperwork are a bare minimum |
Point of View of the Public |
Holds highest credibility and has a strong public perception |
Holds moderate public image, and comparatively lesser credibility |
Holds low public perception, and hence has a low image |
Dissolution Procedure |
Needs a strike off process, which is intricate, involves a lot of complexities, and legal compliances |
Needs a strike off process, which is comparatively less intricate and involves a less number of compliances, than an LLC |
Least complex, basically involves issuing of a notice of termination, followed by a notice of cessation to registration authorities |
Some Source quote from : https://www.acra.gov.sg

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