Types of Companies You Can Set Up in Singapore

Singapore offers various business structures to suit different needs, from startups to multinational corporations. Here’s a summary:

1. Sole Proprietorship

What It Is: A business owned and managed by one individual or a single corporate entity.

‍Who It’s For: Entrepreneurs starting small-scale businesses with minimal risk and investment, such as freelancers or home-based businesses.

‍Key Features:

• ‍‍Easy and low-cost setup.
• The owner is personally liable for all debts and obligations.
• Not a separate legal entity.

2. Partnership

What It Is: A business owned by 2 to 20 individuals or entities. There are three types: General Partnership, Limited Partnership (LP), and Limited Liability Partnership (LLP).

Who It’s For: Small teams or professionals combining resources and expertise to run a joint business.

Key Features:

• General Partnerships: Partners share unlimited liability.
• LPs: At least one partner has unlimited liability; others have limited liability.
• LLPs: A separate legal entity offering limited liability for partners.

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3. Private Limited Company (Pte. Ltd.)

What It Is: A separate legal entity with shareholders (up to 50) and limited liability.

Who It’s For: Startups, SMEs, and growing businesses looking for scalability, tax benefits, and access to funding.

Key Features:

• Profits taxed at corporate rates (lower than personal income tax rates).
• Liability limited to the company’s assets.
• Ability to raise capital through investors or share issuance.

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4. Public Company

What It Is: A company that can offer shares to the public. It can be a Public Company Limited by Shares or a Public Company Limited by Guarantee.

Who It’s For:

• Public Company Limited by Shares: Large businesses intending to list on a stock exchange.
• Public Company Limited by Guarantee: Non-profits, charities, or organizations focused on social, educational, or professional objectives.

Key Features:

• Stringent compliance requirements.
• Unlimited shareholder base for raising capital.

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5. Foreign Branch Office

What It Is: An extension of a parent company registered in another country.

Who It’s For: Established international businesses expanding operations to Singapore without creating a separate entity.

Key Features:

• Not a separate legal entity; the parent company bears full liability.
• Must comply with local regulations for operations in Singapore.

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6. Representative Office

What It Is: A temporary setup for market research or exploring business opportunities in Singapore.

Who It’s For: Foreign businesses evaluating the Singapore market before full-scale operations.

Key Features:

• Cannot engage in profit-making activities.
• Limited to a maximum of three years of operation.

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7. Variable Capital Company (VCC)

What It Is: A flexible corporate structure designed for fund management.

Who It’s For: Fund managers or asset managers seeking a more streamlined and cost-effective structure for investment funds.

Key Features:

• Separate sub-funds under a single entity.
• Enhanced confidentiality for investors.

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Choosing the Right Structure

The best business structure depends on your goals, risk tolerance, and growth plans. Whether you're a solo entrepreneur, a growing startup, or a multinational corporation, Singapore has a solution tailored to your needs. Let us help you make the right choice for your business!

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