What type of business entity is owned by one individual?
Private Limited CompanyA Private Limited Company, a locally incorporated company, is the most flexible and advanced business structure in Singapore. It is also the most preferred business structure in Singapore as it protects its owner’s personal assets from liabilities incurred by the company as well as enjoys tax incentives and exemptions. Show A private limited company must include the suffix “Private Limited” (Pte Ltd) in its name. The number of shareholders is capped at 50. While 100% foreign ownership is allowed in this set up, the company must have a Singapore citizen/resident or Employment Pass (EP) holder as a local director. Private Limited Company, Exempt Private Limited Company, Public Limited Company by Shares, and Public Limited Company by Guarantee are all variations of this business structure. Features At-a-Glance
Learn more | Back to top Sole ProprietorshipA Sole Proprietorship is a type of business structure owned by one person. The Sole Proprietor (i.e. owner) exercises decisive authority and responsibility of all assets and liabilities belonging to the business. The Sole Proprietor is not a separate legal entity from the business and therefore has full liability for the losses and debts of the business. Sole Proprietorships do not enjoy tax incentives and exemptions given to Private Limited Companies. All Singapore citizens, Singapore Permanent Residents (PR), Employment Pass (EP) and Entrepreneur Pass (EntrePass) holders can register as a Sole Proprietor. Foreign individuals and companies can also register, as long as a local resident manager is appointed. Features At-a-Glance
Learn more | Back to top PartnershipsA partnership eases the limitations of a sole proprietorship by allowing two or more people to establish and co-own a business. With this business setup, you and your partner can acquire capital, talent and strategic assets based on mutual terms. However, partnerships do not enjoy tax incentives and exemptions given to Private Limited Companies. Under the Singapore Companies Act, the number of partners in a business is capped at 20, as all partnerships with partners above 20 are required to register as a Private Limited Company. General PartnershipA General Partnership acts very much like Sole Proprietorship because all partners are personally liable for all debts and liabilities incurred during the course of business. It is advisable for partners to approach a lawyer and draw up a Partnership Agreement that helps define the role, responsibilities, and profits due to each partner. Each partner can also be held responsible for the actions of another partner. Consequently, this setup is not a popular option among foreign individuals and Singaporeans looking to incorporate a company. Singapore citizens and Singapore Permanent Residents (PR), Employment Pass (EP) holders may register a Limited Partnership firm. Foreign individuals may incorporate a Limited Partnership but must appoint a local manager to run the firm. Features At-a-Glance
Learn more | Back to top Limited PartnershipA Limited Partnership requires a minimum of at least one active (general) partner and one dormant (limited) partner. The partners are responsible for all liability and the earnings are taxed according to the partners’ personal tax rate. Singapore citizens and Singapore Permanent Residents (PR), as well as Employment Pass (EP) holders may register a Limited Partnership firm. Foreign individuals may incorporate a Limited Partnership but must appoint a local manager to run the firm. The partners can be individuals, Singapore-registered companies or foreign companies. Features At-a-Glance
Learn more | Back to top Limited Liability PartnershipIntroduced in 2005 by the Singapore government, the LLP business structure is highly suitable for chartered professionals who decided to work together. This model combines a partnership entity that protects co-partners from liabilities that may arise from willful misconduct or gross negligence of one partner or a group of partners. While individual partners are liable for their own misconduct or gross negligence, the partner’s liability is not limited if such acts occur under the partner’s supervision or control. Furthermore, the partnership is not relieved from the liability of other partnership obligations. There are safeguards within the Singapore Limited Liability Partnership Act to minimise abuse and provide protection to all partners such as its legal independence and right perpetual succession. Features At-a-Glance
Learn more | Back to top Branch OfficeThe Branch Office is an extension of the foreign company without a distinct legal identity. According to the Singapore Companies Act, a foreign company registered outside of Singapore but have substantial operations within the country that generates income on a continual basis must register as a Branch Office in Singapore. Therefore, the Branch Office is an extension of the foreign company without a distinct legal identity. Features At-a-Glance
Learn more | Back to top Singapore Representative OfficeFor foreign companies, setting up a Singapore Representative Office is a good way to explore potential business opportunities before making a decision to set up a Branch Office in Singapore. Representative Offices are not allowed to engage in commercial revenue-generating activities. Features At-a-Glance
Learn more | Back to top Subsidiary CompanyThe subsidiary of a foreign company is considered a resident company, and therefore is entitled to tax exemptions and incentives as other locally incorporated companies in Singapore. The subsidiary company, with at least one individual shareholder holding a minimum of 10 percent shareholding, is given the same tax exemptions as a newly incorporated start-up company in Singapore. It is entitled to the tax exemption of paying no tax on the first S$100,000 of chargeable income for its first three consecutive years. A further 50% tax exemption is given on its next S$200,000 of chargeable income. Features At-a-Glance
Learn more | Back to top Which type of business is owned by one individual?Sole Proprietorship
This is a business run by one individual for their own benefit. It is the simplest form of business organization. Proprietorships have no existence apart from the owners.
What type of entity is an individual?An individual entity is a business type that's treated as a separate legal entity. This usually refers to corporations.
|