Types of Business Structures in Singapore

Staff Writer

February 21, 2022

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If you have made your mind for starting a business in Singapore, it is essential to choose the right business structure, catering to your needs. This write-up provides an overview of the different business entity structures in the country of Singapore. Take a look at the different business Structure Types in Singapore:

Business Structure Types in Singapore

LLC or Limited Liability Company

In Singapore, LLC contributes to being a legal construct which provides a limitation on the liabilities of the shareholders of the business to the capital, which is invested in the shared. Some of the instances of LLC companies are a subsidiary, public limited company by guarantee, public limited company. Here are few of the types of LLCs in Singapore:

Private Limited Company

Private Limited Company is recognized to be the best structure for the formation of business in Singapore. The total count of shareholders may be within the range of 1-50. One of the directors should be a native of Singapore. The credibility of private limited companies is higher than a partnership or sole proprietorship in the eyes of suppliers, financial organizers, banks, and investors. The private limited company in Singapore can reap the tax benefits in addition to different incentive schemes for local entities which help in the reduction of operating costs and tax.

Public Company Limited by Guarantee

Such type of LLCs is mostly started for the promotion of the non-profit causes. Some of the companies that choose such type of business structure are inclusive of religious and charitable bodies, trade organizations, professional societies, non-profit organizations.

Public Limited Company

Public Limited Company contributes to being a kind of LLC that is enlisted on the stock exchanges. Thus, the general public is allowed to purchase the debentures and shares of the company.


In accordance with the Singapore Company Law, it is possible for two or more entities to register for a single partnership. In this business structure, the owners of the business are allowed to conduct the different business activities together for enhancing the revenue. Such type of businesses has almost 2 to 20 partner. The members of this partnership require paying income tax personally on the income that is procured from the business. There are primarily three kinds of partnership which are enlisted below:

General Partnership

It has a closer resemblance to sole proprietorship business. Similar handicap is shared in terms of liability and personal risk. Such type of partnership is known for holding all of the partners liable for the debts and losses, regardless of the involvement.


LLP is recognized to be the most favorite form of the partnership by business owners. In this partnership, the features of a company and partnership are combined. If two or more people possess complementing skills, it is recommended for them to form such type of partnership. It is known for determining the liability of the owners on the basis of inactions and actions.

Limited partnership

It distinguishes the members as the Limited partners and general partners. No limit is there on the count of the partners, a business can have. However, it is mandatory to have at least one limited partner and one general partner. The liability of limited partners is mentioned in the partnership agreement. However, general partners may have unlimited liabilities.

Options available for foreign companies

In case a foreign organization is willing to establish the organization in the country, they can choose from the below-mentioned entities:

Subsidiary company

Foreign companies are allowed to establish the local limited liability company in the country, that is referred to as the subsidiary company. They can set up representative or branch offices. The subsidiary is known for acting as a unique legal identity from the parent entity.

Branch office

The branch office is considered to be the extension of the foreign parent company, indicating that the liabilities are extended to the parent company. Foreign businesses cannot reap any benefits while setting the branch office over the subsidiary company. Owing to this, foreign entities prefer setting the subsidiary companies in Singapore.

Representative office

A representative office is recognized to be the short-term arrangement and has a limited objective. It does not have any legal status. It is designed for the conduction of market research or for the engagement in different promotional activities. Such offices are not allowed to engage in business, moving goods, opening the line of credit, offering services, entering into the contracts. Setting the representative office is considered to be good in specific situations, especially if the foreign organization does not have enough capital for the establishment of the permanent office.

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