When deciding to incorporate company Singapore, one of the most critical decisions you’ll ever make is the type of structure you’ll form for the business. This decision can affect your business operations, taxes, business perception, liability and of course, the paperwork required for registration.

Here are the types of businesses in Singapore that you can consider when setting up a business here:

Types of Business Entities in Singapore: 3 Structures to Consider

In this guide, you’ll learn about different ways you can structure your business by learning to draw differences in each one of them.

1. Private Limited Company

A private limited company is a type of business entity where less than 50 members hold shares in the company. In general, these types of businesses are not open to the public. The majority of privately incorporated companies in Singapore are private limited companies. A private limited company’s business name ends with Pte Ltd or Private Limited such as Provisor Corporate Services Pte Ltd.

This type of business structure is callable, advanced and flexible due to limited liability, separate legal identity, perpetual succession, credible reputation and ease of capital expansion.

2. Public Limited Company

A public limited company offers shares to open to the general public so they can purchase its shares. They have at least 50 or more 50 shareholders. These business entities are subject to more rigid rules as they’re listed on the stock exchange and can raise capital from the public.

3. Public Limited Company by Guarantee

These types of companies are limited by a guarantee due to their nonprofit purposes. These businesses are legally constituted to engage or support in activities of private or public interest without monetary or commercial profits.

Options for Foreign Companies

Foreign investors looking to set up business Singapore have the following choices to start a business:

Branch Office: Foreigners can register their branch office in Singapore as an extension of their parent company; not as a separate entity. Its liabilities will also extend to the parent company.

Subsidiary Company: It’s a private limited company registered in Singapore with its parent company owning shares. SMEs can opt for a subsidiary company structure in Singapore.

Representative Office: It’s a registered office that serves as a temporary arrangement to undertake marketing activities in Singapore. A representative office isn’t a legal entity so it can’t engage in profit-making activities.

Another type of business entity includes sole proprietor which is the riskiest way to structure a business because it doesn’t have a separate legal status. So you’ll have unlimited liability. You can also form a partnership where you co-own a business with two or more partners. However, partnerships can dissolve due to discontent or problems.

Need more information? Provisor Corporate Services Pte Ltd can help! We offer corporate services, and Company Incorporation Services in Singapore and also offer assistance in helping you decide which business structure is right for you. Contact us now!