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Introduction to the Types of Companies that can be Locally Incorporated in Singapore

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in-SingaporeSingapore has a pro-business atmosphere for entrepreneurs. To make things even more attractive for incorporation in Singapore, the political framework is kept conducive. The tax rates are also very competitive here. In Singapore, a company can be incorporated in three ways. These are as a private limited company, a limited liability partnership, and a sole proprietorship.

All these have different working parameters and Singapore company setup. They differ in their legal structure, as well as their ability to hire people. The decision taken by you now will have its effects on the operational aspects at a later stage. To state an example, the taxation regime, the compliances that need to be followed, and even the paperwork, all differs with the type of company you incorporate.

In the meantime, given below is a little information of the three types of companies that can be incorporated in Singapore by a local Singapore resident person. This information can serve as a worthwhile reference to get the ball rolling initially.

1)       Private Limited Company – This is the first type in which company formation in Singapore can be done. It is also known as an LLC (Limited Liability Company). This type of company is the most viable option for entrepreneurs to incorporate in Singapore. An LLC cannot have more than 50 shareholders; however, the shareholders can be individuals as well as corporate entities or both. In addition, an LLC stands as a separate legal entity. One more added advantage of an LLC is that, the shareholders carry limited liability towards the debts incurred by the LLC. Even raising funds is an easy task for such LLCs. Lastly; the customers look at these companies as the most credible of all three.     

2)       Limited Liability Partnership – An LLPis the second type of business structure that can be setup in Singapore by a local resident. It gives the owners the advantages of a partnership and the plusses of a legally setup company. An LLP is the most viable option for people who want to start a business and provide services by the way of their profession, and get paid for the same.  

3)       Sole Proprietorship – This is the last and the simplest type of company incorporation in Singapore. However, a sole proprietorship does not have the standing of legal entity. Moreover, the owner has to be responsible for the liabilities incurred by his company. If the owner fails to pay the debts, Singapore law permits the court to have his personal assets dissolved for the compensation of the debts. Every entrepreneur should take the effort to become fully aware of all the rules and regulations, before he takes a plunge to incorporate a sole proprietorship.

For all your Singapore company incorporation needs, you can get in touch with Singapore Accounts. Call +65 6536 0036 or you can drop an email at info@accountingservice.com.sg