Take A Note Of The Different Types Of Companies In Singapore: What Are The Different Kinds Of Companies In Singapore?
Starting a company in Singapore, you should be very specific about the type of business entity you want to register.
While registering a company in Singapore, you will need to announce what type of company will represent your business, and it will be dependent on many factors. Well, whatever may be your reason; whether you are opening a business, or you are just curious, here are the types of company in Singapore.
Sole Proprietorship
Sole proprietorship means a specific person running the business. He/She will have complete rights over the profit and will be responsible for everything else including debts, losses and obligations. You will need to be a Singapore citizen or a PR holder to be able to open a sole proprietorship in Singapore. A sole proprietorship business doesn’t stand as a corporate body, and filing annual accounts is not needed.
Partnership
Another one among the types of companies in Singapore is a partnership. It is almost similar to the sole proprietorship, as we may say, only that multiple partners are running the business. There can be a maximum of 20 people running the company as partners. As in the sole proprietorship, you a partnership isn’t a corporate body, and you will not need to file annual accounts.
There are three types of partnership companies in Singapore.
General Partnership
In a general partnership, the rights of each individual partner towards the company is decided by an agreement and is dependent on the contributions made. Everyone is entitled to his/her own investment and profit/loss and every partner pays their own tax.
Limited Partnership
A limited partnership is one where a partner(s) doesn’t have the entire rights to the business. For example, as a ‘limited partner’, you could invest in the company, but can’t take part in any managerial process.
Limited Liability Partnership (LLC)
A limited liability partnership is being increasingly popular in recent days. In an LLC, partners from different fields of expertise come together to form a company. Everyone has their own responsibility depending on the type of knowledge they have, and for an LLC to be successful, great teamwork is needed.
Limited Liability Company (LLC)
Among the types of business entities in Singapore, a Limited Liability Company will let your company stand as a separate legal entity. These are the types of Limited Liability Companies in Singapore.
Private Limited Company
There can be at most 50 shareholders in a private limited company in Singapore. The shareholders can be people or, other corporate entities, and will not be personally liable for the company debts. A private limited company must have at least one director and a secretary and is operated by an office management team. The annual tax rate is up to 9% for profit less than S$300,000, and a flat 17% after that.
Public Limited Company
In general understanding, the shares of a public limited company are made open to the general public. A public limited company is suitable for bigger businesses, and there should be a minimum of 50 shareholders. If you are willing to invest in one, you can find them in the stock exchange.
Public Company Limited by Guarantee
A public company limited by guarantee Singapore is used to non-profit organizations in the city-state. A public company limited by guarantee is run by donations and is owned by a person willing to pay the debts.
Interested in opening a company in Singapore? Contact us; we will help you register any types of companies in Singapore. Take a look at our other services here. Also, you can hit us up if you are still confused about Singapore company types, we will answer all your specific questions.
