To start , it is very important to decide what is the type of business structure required for the business . This has direct impact how taxes are being paid , the image and perception of both suppliers and customers about your business , personal liability and loans required for future expansion . Following are the few various types of business entities in Singapore with different regulatory and tax requirements and ownership
Limited Liability Company
A limited liability company (LLC) is a company whose liabilities are limited to the amount of share capital . This means that the liabilities of the owners are limited by the assets in the company and their personal assets are protected from business liabilities . In Singapore , Limited Liability Company can be a Private Limited Company , Public Limited Company or Public Company Limited by Guarantee
Private Limited Company
This is an LLC whose shares are held by less than 50 person and is not available to the general public . Such LLC normally ends with a typical PTE LTD . In Singapore , this is the most preferred type of business entity for entrepreneurs as it is flexible and allow scalability
Public Limited Company
This is a LLC which offers shares to the general public . A public listed company must have at least or more shareholders and is subjected to stringent rules and regulation since they have the ability to raise funds from the general public . Usually such companies are listed on the stock exchange
Public Company limited by Guarantee
This type is normally a business entity meant for non-profit purposes
Sole Proprietorship
This is the simplest and riskiest type of business entity in Singapore. The business owner owns all assets and liabilities . Therefore there is no protection of personal asset from business risks and liabilities .
Partnership
This type of business entity is similar to sole proprietorship except it allows 2 or more person to co-own a business , The partnership comes to an end with death , insolvency , incapacity or retirement of a partner . Furthermore , through a given notice at any one time , a partnership can cease . Not all businesses can be a partnership
