Choosing the type of business structure in which to incorporate your business is an important decision that should not be taken lightly.
This seemingly small decision will impact how you pay taxes, the level of risk you take, and how others perceive your business. The right setup gives you a solid foundation to grow with confidence.
In Singapore, there are a few main ways to register a business. Each comes with its own rules, advantages, and trade-offs. This guide explains the main types of business entities recognised by the ACRA, how they differ, and how to choose the one that fits your goals best.
Note: This guide is based on ACRA’s official information on business registration in Singapore. Always check the latest updates on Bizfile before you start.
Comparing Common Types of Companies in Singapore
Singapore offers a few main ways to set up a business. Each structure differs in how ownership, liability, and compliance work under the Accounting and Corporate Regulatory Authority (ACRA).
| Business Structure | Legal Entity | Liability | Best For |
|---|---|---|---|
| Sole Proprietorship | No | Unlimited personal liability | Freelancers and small business owners who want full control |
| Partnership | No | Unlimited, shared among partners | Two or more individuals starting a small business together |
| Limited Liability Partnership (LLP) | Yes | Limited to each partner’s own actions | Professional firms or partners seeking flexibility with protection |
| Private Limited Company (Pte Ltd) | Yes | Limited to share capital | Startups and SMEs planning long-term growth or investment |
The next section provides a detailed explanation of each company type, allowing you to understand how they operate before making a choice.
Main Types of Companies in Singapore
Under Singapore’s Companies Act, ACRA recognises several types of companies, each with its own rules on ownership, liability, and compliance. It can own property, sign contracts, and continue operating even if ownership changes. It also separates your personal assets from your business, reducing risk and improving credibility.
Here’s how each one works.
Private Limited Company
A Private Limited Company is the most common company type in Singapore. It’s a separate legal entity, so your personal assets are protected if the business runs into debt. This structure suits entrepreneurs, startups, and SMEs planning to grow over time.
Smaller firms with up to 20 shareholders and no corporate owners are usually registered as Exempt Private Companies (EPCs), which are a simpler version of a Pte Ltd but offer the same legal protection.
Key Features
- Legal status: Separate legal entity from its owners
- Ownership: Up to 50 shareholders
- Liability: Limited to each shareholder’s share capital
- Tax: 17% corporate tax rate, with startup exemptions available
- Compliance: Must file annual returns and follow the Companies Act
Tip: Want to start your own Pte Ltd? Here’s a step-by-step guide to registering a Private Limited Company in Singapore.
Public Limited Company by Shares
A Public Company Limited by Shares is for larger businesses that want to raise capital from the public.
It has more than 50 shareholders and can issue shares to investors, though it must meet stricter governance and disclosure standards.
Key Features
- Legal status: Separate legal entity under the Companies Act
- Ownership: More than 50 shareholders
- Liability: Limited to each shareholder’s investment
- Tax: 17% corporate tax rate
- Compliance: Must register a prospectus with the Monetary Authority of Singapore (MAS) before offering shares, and submit audited financial statements each year
Public Company Limited by Guarantee
A Public Company Limited by Guarantee is often set up for non-profit purposes, such as charities, trade associations, or professional bodies.
Instead of shareholders, it has members who agree to contribute a fixed amount if the company closes. It’s best suited for organisations focused on public benefit rather than profit.
Key Features
- Legal status: Separate legal entity
- Ownership: No shareholders, only members
- Liability: Limited to the amount stated in the company’s constitution
- Compliance: Must follow its stated non-profit purpose and comply with the Companies Act
Unlimited Companies (Private or Public)
An Unlimited Company is rare in Singapore. In this setup, owners are personally responsible for all debts and liabilities, so it’s generally used for specialised or professional purposes.
Key features
- Ownership: Can be private or public
- Liability: No limit on members’ liability
- Compliance: Must follow the Companies Act like any other company
Other Types of Business Entities in Singapore
If setting up a company feels a bit too formal for your plans, there are simpler ways to run a business in Singapore. Although these aren’t companies under the Companies Act, ACRA recognises them as valid business structures that suit smaller or more flexible operations.
These options are easy to register and manage, but come with higher personal risk since you and your business are legally the same.
Sole Proprietorship
A Sole Proprietorship is the simplest way to run a business in Singapore. It can be owned by one person, a company, or a limited liability partnership (LLP, which is explained later in this guide).
If you’re a freelancer, consultant, or running a small business, this setup keeps things simple and lets you stay fully in control.
Since it’s not a separate legal entity, the owner is personally responsible for all debts and obligations.
Key features
- Ownership: One owner only
- Legal status: Not a separate legal entity from the owner
- Liability: Unlimited personal liability for debts and losses
- Tax: Profits are taxed as the owner’s personal income
- Compliance: Must renew registration each year and stay compliant with local contribution rules
Thinking of starting small? Read our guide to registering a Sole Proprietorship in Singapore and see what you’ll need to get started.
Partnership
A Partnership works much like a Sole Proprietorship but has two or more owners. Each partner can be an individual, a company, or a limited liability partnership (LLP).
This setup works well when two or more people want to run a business together and share both the responsibilities and the rewards.
Because it is not a separate legal entity, each partner is personally liable for the debts and actions of the business.
Key features
- Ownership: Minimum of two and up to twenty partners
- Legal status: Not a separate legal entity
- Liability: Partners share unlimited personal liability
- Tax: Profits are taxed as the personal income of each partner
- Compliance: Must renew registration each year and stay compliant with local contribution rules
Limited Partnership (LP)
A Limited Partnership (LP) lets two or more people do business together while limiting the risk for some partners. It must have at least one general partner who manages the business and one limited partner who contributes capital but does not take part in management.
This setup suits investors who want to be involved financially but not operationally. Since it is not a separate legal entity, it cannot own property or enter contracts in its own name.
Key features
- Ownership: Minimum of two partners, at least one general and one limited partner
- Legal status: Not a separate legal entity
- Liability: General partners have unlimited liability, while limited partners are liable only up to their investment
- Tax: Partners are taxed based on their own legal status, either personal or corporate
- Compliance: Must appoint a locally resident manager if all general partners live outside Singapore
For Foreign Readers: When registering a Limited Partnership in Singapore, you’ll need to appoint a locally resident manager who is a Singapore citizen, permanent resident, or an EntrePass or Employment Pass holder. If you don’t have a SingPass account, a corporate service provider can help file the Bizfile application for you.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) combines the flexibility of a partnership with the protection of limited liability. It’s a separate legal entity, which means it can own property, enter contracts, and continue operating even if partners leave or join.
If you’re running a business with others and want to protect your personal assets, a Limited Liability Partnership gives you that balance. It lets you work together while limiting your liability for what your partners do.
Key features
- Ownership: At least two partners, who can be individuals or companies
- Legal status: Separate legal entity from its partners
- Liability: Partners are not personally liable for the LLP’s debts except for losses caused by their own wrongful acts
- Tax: Profits are taxed at the personal or corporate rate of each partner, not at the LLP level
- Compliance: Must file an annual declaration of solvency or insolvency and keep proper accounting records
Running a business with partners? See our full guide on setting up a Limited Liability Partnership in Singapore and understand what’s needed to register one.
Foreign Company Options in Singapore
Already running a business overseas and thinking about expanding to Singapore? There are a few ways to make that happen, depending on how much commitment you’re ready for and how closely you want to manage things from here.
Each option offers a different level of control, liability, and flexibility. Here’s how they work.
Transfer of Registration
If you want to move your entire company to Singapore and make it your new home base, you can transfer your registration through a process called re-domiciliation.
Once approved, your business becomes a Singapore-registered company and must follow the local Companies Act. You’ll keep your existing name and structure, but your company will now operate fully under Singapore’s laws.
This option suits established businesses that plan to relocate operations permanently and want to enjoy Singapore’s business-friendly environment.
Representative Office
A representative office (RO) is a way to explore the market before committing to a full setup. It lets a foreign company study the local environment, connect with potential partners, or run research, but it cannot trade, earn revenue, or sign contracts.
You’ll need to register your representative office with Enterprise Singapore, not ACRA. Each registration lasts one year and can be renewed annually. It’s ideal if you’re exploring opportunities or learning how your business might perform in Singapore.
Note: Enterprise Singapore charges a SGD 200 annual processing fee for each representative office application.
Subsidiary Company
A subsidiary company is a private limited company incorporated in Singapore, with your foreign business as its shareholder.
It’s the most common option for small to mid-sized foreign companies. You’ll get a separate legal entity with limited liability protection, meaning your parent company’s assets are safe from local business risks. A subsidiary can be 100% foreign-owned and enjoys the same tax benefits as local Singapore companies.
This setup is best for foreign businesses that want a long-term base in Singapore and prefer operating independently while still being connected to their parent company.
Branch Office
A branch office works as an extension of your existing company. It’s registered in Singapore under the same name and managed under your head office’s control.
Because it’s not a separate legal entity, the parent company remains liable for everything the branch does in Singapore. You’ll also need to appoint at least one locally resident authorised representative to manage local compliance.
This option fits foreign companies that want to operate directly under their global brand without forming a new entity.
Tip: If you don’t have a local team, you can appoint a corporate service provider to register your branch office and act as your authorised representative in Singapore.
How to Decide Which Business Structure Fits You
You’ve seen what each type of business entity in Singapore looks like, and now it’s time to figure out which one fits your plans. The structure you choose affects how you run your business, manage risk, and grow, so it’s important to get it right early on.
ACRA recommends thinking through a few key factors before you decide. Let’s go through them together so you can choose with confidence.
1
Base It on Your Capital
Start with how you’ll fund your business.
If you’re using your own savings or starting small, a Sole Proprietorship might be enough to begin with.
But if you plan to raise funds, attract investors, or grow quickly, a Private Limited Company gives you flexibility. It lets you issue shares, bring in shareholders, and scale faster.
2
Align It with Ownership
Think about who’s building the business with you.
- If you’re running it alone, a Sole Proprietorship keeps things simple.
- If you’re teaming up, a Partnership or Limited Liability Partnership (LLP) lets you share ownership and responsibilities.
- And if you want a share-based structure that’s easy for investors or partners to join later, choose a Company.
2
Protect Yourself from Liability
Consider how much personal risk you’re prepared to take.
In a Sole Proprietorship or Partnership, you’re personally liable for all debts and obligations.
A Limited Liability Partnership (LLP) or Company limits your liability to what you’ve invested, which means your personal assets are safe even if the business runs into trouble.
Tip: If your business involves contracts, employees, or clients, it’s usually safer to choose a structure that offers limited liability.
4
Match It to Business Risk
Not all businesses carry the same level of risk.
If you’re offering freelance, consulting, or small-scale services, a simple setup might do.
But if you’re handling larger projects, hiring staff, or signing big contracts, a Private Limited Company or Limited Liability Partnership (LLP) offers stronger legal protection and credibility.
5
Balance Pros and Cons
Every structure has trade-offs:
- A Sole Proprietorship is simple and cheap to run, but offers no liability protection.
- A Limited Liability Partnership (LLP) gives flexibility and protection but requires clear partner agreements.
- A Company takes more effort to maintain but unlocks tax advantages, funding options, and investor trust.
If you’re starting out, you might find that a Private Limited Company gives you the balance of credibility, flexibility, and room to grow that you’re looking for.
6
Plan for the Long Term
Finally, think ahead to where you want your business to be in a few years.
If you’re testing an idea or side venture, a Sole Proprietorship can be a quick start.
But if you aim to scale, hire, or eventually sell, setting up a Company from day one gives you stability and more options down the road.
You can always switch structures later, but starting with the right one saves time, cost, and paperwork.
If you’re still unsure, try the ACRA e-Adviser for Business Structure. It only takes a few minutes and suggests the most suitable option based on your goals, funding plans, and risk level.
Next Steps: After you’ve chosen your structure, you’ll need a business account to keep things running smoothly. Statrys is launching a Singapore multi-currency business account designed for startups and SMEs that deal with multiple currencies. You can join the waitlist for early access.
Conclusion
Understanding the different types of companies in Singapore is the first step toward building something lasting. Once you’ve chosen the structure that fits your goals, everything else, from opening a business account to getting your operations running, starts falling into place.
No matter which type of company you choose, make sure it supports how you want to grow. The right setup gives your business the credibility, flexibility, and protection it needs to scale with confidence.
FAQs
How many types of companies are there in Singapore?
ACRA recognises several types of companies under the Companies Act, including Private Limited Companies, Public Companies Limited by Shares, Public Companies Limited by Guarantee, and Unlimited Companies. The most common type for most entrepreneurs is the Private Limited Company (Pte Ltd).
