Singapore Business Structures
Compare the eight ways to set up a business in Singapore. Each has different liability, ownership, and compliance implications.
Sole Proprietorship
Simplest structure for one-person businesses
A sole proprietorship is the simplest business structure in Singapore, owned by one individual. It is not a separate legal entity — the owner and the business are the same. Easy to set up and inexpensive to maintain, but the owner bears unlimited personal liability for all business debts.
Partnership
Two or more owners sharing responsibility
A partnership is a business owned by 2 to 20 partners. Like a sole proprietorship, it is not a separate legal entity — all partners bear unlimited personal liability. Profits are taxed as each partner's personal income.
Limited Partnership (LP)
Mix of general and limited partners
A Limited Partnership has at least one general partner (with unlimited liability and management control) and at least one limited partner (with liability capped at their contribution and no management role). It offers flexibility for investment structures.
Limited Liability Partnership (LLP)
Partnership structure with limited liability
An LLP combines the flexibility of a partnership with the limited liability of a company. Partners are not personally liable for the LLP's debts or for other partners' actions. It is a separate legal entity with perpetual succession.
Private Limited Company (Pte. Ltd.)
The mainstream choice for growth-focused businesses
A Private Limited Company is the most common business structure in Singapore. It is a separate legal entity with limited liability for shareholders, perpetual succession, and the ability to raise capital by issuing shares. Requires at least one resident director and a company secretary within 6 months. Minimum paid-up capital is S$1. 100% foreign shareholding is permitted.
Company Limited by Guarantee (CLG)
Structure for non-profits and associations
A CLG is a company structure typically used by non-profit organisations, professional bodies, and trade associations. Members guarantee a fixed contribution to the company's liabilities. Surpluses are not distributed to members but reinvested in the organisation's mission.
Branch Office
Extension of a foreign company in Singapore
A Branch Office is an extension of a foreign parent company, not a separate legal entity. It can conduct business and generate revenue in Singapore but the parent company bears full liability for the branch's actions. Must appoint a local authorised representative.
Representative Office
For market research and liaison only
A Representative Office is a temporary setup for foreign companies to conduct market research, feasibility studies, and liaison work. It cannot conduct commercial activities or generate revenue. Valid for up to 3 years, after which it must convert to a branch or subsidiary.
This is an independent guide — not a government website and not legal or tax advice. Official registration is done on ACRA Bizfile. Always verify current requirements on the relevant .gov.sg portal.