The types of business organisation which may be registered in Singapore are:

• Registered under the Business Registration Act (Business Firm):

  • Sole Proprietorships

  • Partnerships

• Registered under the Companies Act (Private/Public Limited Company):

  • Incorporated companies

  • Foreign companies

Business Firm

A business firm can be registered with the Registrar as sole-proprietorship or partnership. Compare to other type of setup, business firm is subjected to less statutory regulations and it is economical in the business registration and administration. The disadvantage is that the members of the business firm are jointly and serverly responsible for all the debts of the firm and their liability are unlimited. In case the proprietor or all the partners are foreigner, the firm has to appoint a resident in Singapore as manager of the firm

• Business firm is not a legal entity, the legal liabilities fall on the business owners and managers

• Sole-proprietor, partners and appointed managers have unlimited liability

Limited Company

A company is an incorporated entity and once registered under the Companies Act, it has legal personality. The number of shareholders of a Privete Limited Company is restricted to 50 or less. Public Limited Company may has more than 50 members and the company may raise capital by offering shares to the public. A Limited Company must has 2 directors and at least one shall be resident in Singapore. For limited company, the liability of its member is often limited by share, the liability of its members is limited to any amount unpaid on their shares. When shares are fully paid up, shareholders have no further liability to contribute towards the debts of the company

• A company is a legal entity.

• Shareholders of a limited company are protected from legal suits. They cannot be named as defendants in suits against the company

Foreign Company

A foreign company is one that is incorporated outside Singapore. A foreign company has to register its branch in Singapore before it can commence business. The foreign company has to appoint two or more person resident in Singapore as local agents to accept on its behalf service of process and any notices required to be served on the company

Representative Office

A foreign company may establish a representative office in Singapore. The Representative Office must confine its activities strictly to promotion and liaison carried out on behalf of its parant company. They must not engage in any trading or business acitivities, whether carried out directly or on behalf of its parent company. or enter into business contract on behalf of the parant company or provide services for a fee. An Representative Office is not a legal entities and is not a permanent establishment

Registration of Business Firm And Incorporation of Company

The decision on the type of business organisation to be used for your business in Singapore depend on the nature and the risk of your business.

We specialised in handling the Incorporation of Private Limited and the registration of branch office for foreign company, representative office and business firm