Business Incorporation – Types of Business Entities in Singapore

Setting up your new company in Singapore? Awesome choice! Singapore has been one of the most preferred destinations for emerging businesses aiming to deduct running costs and generate profits. A major aspect that should never be overlooked is choosing the right business entity during company incorporation in Singapore. Here’s a simple guide explaining the types of business entity existent in the Singaporean business world:

1. Limited Liability Company (LLC):

Limited liability company is that one of which its liabilities are limited to the share capital of the company. LLC business entity has to be registered under the Singapore Companies Act and exists as a separate entity from the members. There are 3 subdivisions such as Private Limited Company, Public Limited Company and Public Limited Company Limited by Guarantee.

2. Sole Proprietorship:

One of the simplest forms of business is sole proprietorship. Here, the business owner owns all the liabilities and assets. If the business is unable to meet its expenses, the owner will be responsible for the same. Having said that, it isn’t a recommended type of business entity for budding entrepreneurs.

3. Partnership:

Partnership form of business is used to address the limitations regarding sole proprietorship, by formulating a company owned by two or more people at the same time. Such entity will not have legal existence separate from the partners. Partnership business can be of three forms: general partnership, limited partnership and limited liability partnership.

If you’re perplexed about choosing the right business entity, hire the experts from a company formation service in Singapore. With enough experience, they can help figure out what is best for your business.