All Business structures must be registered with the Accounting and Corporate Regulatory Authority (ACRA)
Company
- It is a legal entity
- Profits are taxed at corporate tax rates
- The owner of the Company are called shareholders. There must be a minimum of one share owned by on shareholder
- A shareholder is not liable for any debts and obligations beyond his agreed share capital invested in the Company
- Most companies in Singapore are Private Limited (“Pte Ltd”) – up to 50 owners
Sole-proprietorship and Partnership
- It is not a legal entity
- The owner / each partner is personnally accountable for all risks, debts and losses
- Profits form part of owner / each partner’s personal income and are taxed at personal income tax rates
Limited Liability Partnership (LLP)
- It is a legal entity
- The personal assets of the partners are protected and owners are not personally accountable for the wrongful acts of other owners
- An individual’s income from the LLP will be taxed at personal income
Limited Partnership (LP)
- It is not a legal entity
- It consists of at least one general partner and at least one limited partner
- A general partner has unlimited personal liability and can be appointed as the manager of th LP
- A limited partner is not liable for any debts and obligations beyond his agreed investment in the LP
- If the limited partner takes part in the management of the LP, he will have unlimited liability as if he were a geberal partner
- An individual’s income from the LP will be taxed at personal income tax rate