Company Formation Services
We provide a comprehensive range of professional services related to business formation. Our full line of company formation services is listed below.
- Incorporating of a private company limited by shares or guarantee in Singapore
- Registration of sole proprietorship in Singapore
- Registration of partnership in Singapore
- Foreign Company Setup
Different types of business entities
Private Limited Companies
A company is a business entity registered under the Companies Act, Chapter 50. It has a legal personality i.e. it has rights to own properties, has perpetual succession and can use
Sole Proprietorship
A sole-proprietorship is a business owned by one person or one company. There are no partners. The sole-proprietor has absolute say in the running of the business.
Limited Liability Partnership
A Limited Liability Partnership (LLP) is a vehicle for doing business in Singapore. An LLP gives owners the flexibility of operating as a partnership while having a separate legal identity
Foreign Company Setup
Foreign companies wishing to setup a presence in Singapore can choose to register a Branch Office, Subsidiary Company, or a Representative Office.
| Companies | Sole Proprietorship | Partnership | Limited Liability Partnerships | |
|---|---|---|---|---|
| Legal Status | A legal person (can enter into contracts, hold property, sue and be sued and exist irrespective of change of shareholders) | Not a legal person | Not a legal person | A legal person (can enter into contracts, hold property, sue and be sued and exist irrespective of change of partners) |
| Number of owners/ shareholders | Minimum – 1 director and 1 shareholder | 1 | Minimum – 2 Maximum – 20 (except for professional firm) | Minimum – 2 Maximum – no maximum number of partners |
| Liability of owner/ shareholder | Limited – the shareholder is not liable for the debts of the company | Sole proprietor has unlimited liabilities | Partners have unlimited liabilities | Not personally liable for the conduct of other partners or transactions or liabilities of the LLP unless is for his own wrongful acts or negligence |
| Suitable For | Businesses with projected growth, which may require additional funding for expansion | Individual with low risk | Professional firms such as accountancy, law and architecture | Professional firms such as accountancy, law and architecture |
| Advantages | Tax exemptions – first S$100,000 of net profit each year is tax-free and the next S$200,000 taxed at 8.5 percent for the first three years | Low cost | Low cost | Low cost setup with limited liability protection |
| Disadvantages | Compliance obligations such as financial reports, AGMs, etc | Personal assets not protected | Taxed at the individual level and requires paying a personal income tax rate that is higher than the corporate tax rate | Taxed at the individual level and requires paying a personal income tax rate that is higher than the corporate tax rate |