Register company with us now!
Click here
Types Of Company Available
Sole Proprietorships
Owned by | One person |
Legal Status |
|
Registration Requirements |
|
Formalities and Expenses |
|
Set Up Fee | $115 ($15 name application fee and $100 registration fee) for 1-year registration
$175 ($15 name application fee and $160 registration fee) for 3-year registration |
Taxes | Profits taxed at owner’s personal income tax rates |
Continuity & Transferability | Exists as long as the owner is alive and desires to continue the business |
Closing the Business |
|
Partnerships
*Note: Sole proprietorships and partnerships are not corporate bodies. There is no requirement for filing annual accounts but they must renew their registrations annually and report to the IRAS for annual returns.
Owned by | Generally between two and 20 partners. A partnership of more than 20 partners must incorporate as a company under the Companies Act, Chapter 50 (except for professional partnerships). |
Legal Status |
|
Registration Requirements |
|
Formalities and Expenses |
|
Set Up Fee | $115 ($15 name application fee and $100 registration fee) for 1-year registration $175 ($15 name application fee and $160 registration fee) for 3-year registration |
Taxes | Profits taxed at owner’s personal income tax rates |
Continuity & Transferability | Exists as long as the partners agree it will |
Closing the Business |
|
Limited Partnerships (LP)
A general partner who may be either a corporation or an individual, will be personally liable for all the debts and liabilities while he/she/it remains a general partner. Meanwhile, a limited partner will not be liable for the debts and other liabilities of the partnership beyond the amount of his/her agreed contribution.
Owned by | At least two partners; one general partner and one limited partner. No maximum limit |
Legal Status |
|
Registration Requirements |
|
Formalities and Expenses |
|
Set Up Fee | $115 ($15 name application fee and $100 registration fee) for 1-year registration $175 ($15 name application fee and $160 registration fee) for 3-year registration |
Taxes | Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation) |
Continuity & Transferability |
|
Closing the Business |
|
Limited Liability Partnerships (LLPs)
However this comes with safeguards in law to minimize abuse and provide protection to parties who deal with the LLP. The LLP is a body corporate and has legal personality separate from its partners. The LLP has perpetual succession. Any change in the partners of a LLP does not affect its existence, rights or liabilities.
Definition
Owned by |
|
Legal Status |
|
Registration Requirements |
|
Formalities and Expenses |
|
Set Up Fee | $115 ($15 name application fee and $100 registration fee) |
Taxes | Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation) |
Continuity & Transferability |
|
Closing the Business |
|
Local Private Companies
- Private Limited Companies – Companies limited by shares pursuant to, and governed by the Singapore Companies Act. The share holders cannot be held personally liable for the debts of Limited Companies, with their liability limited to the amount of shares that have been issued to them which they have not fully paid for. The number of shareholders is limited to fifty or less.
- Exempt/Deemed Exempt Private Limited Companies – A subtype of a private company, an exempt Private_Limited_Company has less than 20 members, none of them being corporate entities. Should the companies turnover exceed S$5million it will no longer be deemed exempt. The status is not specially conferred, it is simply a status by operation of law.For more information about tax exemption of Private Limited companies, please check our Singapore Tax FAQ page.
- Gazetted Exempt Private Companies – Government-owned companies which have been declared Exempt Private Company by the Minister Gazette.
Local Public Companies
- Company Limited by Share – The number of shareholders can be more than fifty members and the company may raise capital by offering shares and debentures to the public. A public company must register a prospectus with ACRA before making any public offer of shares and debentures.
- Company Limited by Guarantee – Companies limited by guarantee are usually formed for non-profit making purpose. This type of company is more commonly used for trade associations, charitable bodies, clubs, proffesional and learned societies, some religious bodies and the like, rather than commercial undertakings.
Comparison: Singapore LLC vs LLP vs Sole Proprietorship
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 |

Our Services
Guides
Contact Us
Total Accounting Solutions Knowledge
Golden Mile Complex
#08-11
Singapore 199588
Tel : 93556401
Opening Hours :
8.30am – 6.30pm ( Mon – Fri)