Types of Business Structure

Business Structure Type
  • Recommended For
  • Ownership
  • Registration Requirements
  • Setup / Registration Cost
  • Cost of ongoing maintenance
  • Statutory Compliances ( ACRA & IRAS )
  • Tax Treatments & Benefits
  • Separate Legal Entity
  • Limitation of Liability
  • Personal Assets Protection
  • Continuation of Business upon death of member
Sole Proprietorship / Partnership
  • Business with low risk or individuals who has no prior experience to running business
    Recommended For
  • 1 owner (Sole Proprietor)
    / 2 – 20 Partners (Partnership)
    Ownership
  • • Age 18 and above

    • Singapore citizens / Singapore Permanent Residents / EntrePass holder

    • Owners residing in overseas must appoint an authorized representative who is resident in Singapore
    Registration Requirements
  • Low
    Setup / Registration Cost
  • Low
    Cost of ongoing maintenance
  • Simple
    Statutory Compliances ( ACRA & IRAS )
  • Personal Income Tax Rate (Capped at 22% from YA 2017 to YA 2023, Capped at 24% From YA 2024 onwards)
    Tax Treatments & Benefits
  • No
    Separate Legal Entity
  • Unlimited
    Limitation of Liability
  • No
    Personal Assets Protection
  • No
    Continuation of Business upon death of member
  • Set Up Now
Limited Liability Partnership
  • Professionals such as accountants, lawyers and engineers etc.
    Recommended For
  • Minimum of 2 and no limit on the maximum number of partners
    Ownership
  • • At least 2 partners who are age 18 and above (Individuals) / body corporate

    • Must appoint at least 1 manager who is an individual ordinarily resident in Singapore (Age 18 and above and not disqualified under the Companies Act)
    Registration Requirements
  • Medium
    Setup / Registration Cost
  • Medium
    Cost of ongoing maintenance
  • Moderate
    Statutory Compliances ( ACRA & IRAS )
  • Personal Income Tax Rate (Capped at 22% from YA 2017 to YA 2023, Capped at 24% From YA 2024 onwards)
    Tax Treatments & Benefits
  • Yes
    Separate Legal Entity
  • *Limited
    (However, Partners can be personally liable for debts and losses resulting from own wrongful actions but not from other partners)
    Limitation of Liability
  • Yes
    (refer to Limitation of Liability)
    Personal Assets Protection
  • No
    Continuation of Business upon death of member
  • Set Up Now
Private Limited Company
Popular
  • Business with higher risk or projected growth and requires additional capital for expansion.
    Recommended For
  • Maximum of 20 for Exempt Private Company with no corporation holding any beneficial interest in shares

    Maximum of 50 members who can be individuals or corporation
    Ownership
  • • At least 1 shareholder

    • At least 1 Director who is an individual ordinarily resident in Singapore (Age 18 and above and not disqualified under the Companies Act)

    • Foreigners can apply for EntrePass from Ministry of Manpower should he wish to act as local director of the Company
    Registration Requirements
  • High
    Setup / Registration Cost
  • High
    Cost of ongoing maintenance
  • Complex
    Statutory Compliances ( ACRA & IRAS )
  • Corporate Tax Rate @17%

    First 3 YAs falls in YA 2010 to YA 2019
    100% Tax Exemption for First S$100,000 & 50% on the next S$200,000

    First 3 YAs falls in or after YA 2020
    75% Tax Exemption for First S$100,000 & 50% on the next S$100,000

    Tax Treatments & Benefits
  • Yes
    Separate Legal Entity
  • Limited
    Limitation of Liability
  • Yes
    Personal Assets Protection
  • Yes
    Continuation of Business upon death of member
  • Incorporate Now