Entrepreneurship seems to be the buzz word in Singapore nowadays, with many people rushing to create new companies. If you’re getting ready to make that first step and create your own start up, you might be confused by the many different types of business structures available to you.

Here’s all you need to know about being your own boss and setting up a company in Singapore:

Things You Need To Consider to Set Up A New Company

  1. Are you alone in this venture, or do you have partners?
  2. Are you willing to risk unlimited liability, or do you want to limit liability?
  3. Are you willing to be taxed at a personal level? Or would you like the venture to carry the tax burden?

Things You Need To Set Up A New Company

  1. Singapore Citizens/PR

    Singpass
    If you’re a Singapore citizen who has forgotten your Singpass password, it can be reset most Community Centres and locations here or reset it online.

    An online payment method

    Details of all the partners in the new venture (I/C Number., Address, Name, Contact No.)

  2. Foreigner
    An Entrepass which you must apply for
    An online payment method

Different Business Structures

  1. Sole Proprietorship

One of the most common forms of business in Singapore, a Sole Proprietorship is a business run by a single person. The business and the owner are considered the same legal entity. The owner is personally liable for all debts and losses of the business. Profits are taxed at the owner’s personal income tax rates. Sole proprietorships need to be renewed every year.

Set-up Fee: $65

  1. Partnership

A business that has between 2 – 20 partners. The business and its owners are considered the same legal entity and the partners are each personally liable for the partnership’s debts and losses. Profits are taxed at each partner’s person income tax rates. Partnerships need to be renewed every year.

Set-up Fee: $65

  1. Company

A business that is a separate legal entity from its shareholder and directors. The business is considered a separate legal entity from its shareholders. Shareholders are not personally liable for debts and losses of the companies, though they may lose as much as they had invested. The rules on companies are set out in the Companies Act. Profits from a company are taxed at the corporate tax level. It should be noted as well that the annual filing procedures for a company are probably the most sophisticated among all the business structures mentioned.

Set-up Fee: $315

  1. Limited Liability Partnership (LLP)

A structure that was not available in Singapore till just a few years back, an LLP provides the partners with some rights of a partnership and some rights of a company. LLP’s do not have unlimited liability, like a company their partners are not responsible for any debts or losses that the business incurs on a personal level unless the partner is personally responsible.

LLP profits are also taxed on a personal level instead of the corporate level, thus combing the best elements of a partnership and a company.

Set-up Fee: $165

  1. Limited Partnership

Limited Partnerships is the newest business structure available in Singapore. With a minimum of two partners, a minimum of one as a general partner and a minimum of 1 as a limited partner. General partners are liable for all debts and obligations while limited partners have their obligation limited to the amount they contribute to the business. In most other aspects, though, this is similar to a partnership.

Set-up Fee: $65

How To Set Up Your Company

Go to ACRA website and click under the appropriate tabs and follow the instructions.

For more articles on how to avoid startup mistakes and entrepreneurship, read more here!

Recommend0 recommendationsPublished in Entrepreneurship

RELATED ARTICLESMORE FROM AUTHOR

41 COMMENTS

  2. Good day! This post could not be written any better! Reading this post reminds me of my previous room mate! He always kept talking about this. I will forward this post to him. Pretty sure he will have a good read. Thank you for sharing!

  4. Pretty section of content. I simply stumbled upon your site and in accession capital to say that I acquire actually enjoyed account your weblog posts. Anyway I will be subscribing in your augment or even I achievement you access persistently fast.

  5. Your style is unique in comparison to other folks I’ve read stuff from. Thanks for posting when you’ve got the opportunity, Guess I will just bookmark this page.

  7. Someone essentially assist to make significantly articles I might state. That is the first time I frequented your website page and thus far? I surprised with the analysis you made to create this particular submit extraordinary. Excellent task!

  12. Having read this I thought it was extremely informative. I appreciate you spending some time and effort to put this short article together. I once again find myself personally spending a significant amount of time both reading and posting comments. But so what, it was still worth it!

  16. Very nice post. I simply stumbled upon your blog and wished to say that I’ve really loved browsing your blog posts. After all I will be subscribing for your feed and I’m hoping you write once more very soon!

  20. Can I just say what a comfort to find someone who truly knows what they are discussing over the internet. You definitely know how to bring a problem to light and make it important. More people ought to look at this and understand this side of your story. I can’t believe you are not more popular because you certainly have the gift.

  24. I’m extremely pleased to uncover this web site. I want to to thank you for your time just for this fantastic read!! I definitely savored every little bit of it and i also have you book-marked to see new information on your website.

  28. I’m really impressed with your writing skills and also with the layout on your blog. Is this a paid theme or did you modify it yourself? Either way keep up the nice quality writing, it is rare to see a great blog like this one today.

  32. I’m not certain where you’re getting your info, but great topic. I must spend a while learning much more or understanding more. Thanks for great info I was searching for this information for my mission.

  34. I have to thank you for the efforts you’ve put in penning this site. I really hope to check out the same high-grade content by you in the future as well. In fact, your creative writing abilities has inspired me to get my own, personal blog now 😉

  36. Hey I am so excited I found your webpage, I really found you by error, while I was browsing on Yahoo for something else, Anyhow I am here now and would just like to say many thanks for a marvelous post and a all round enjoyable blog (I also love the theme/design), I don’t have time to look over it all at the moment but I have saved it and also added your RSS feeds, so when I have time I will be back to read more, Please do keep up the superb work.

  38. Hello! I could have sworn I’ve been to this website before but after checking through some of the post I realized it’s new to me. Anyways, I’m definitely delighted I found it and I’ll be book-marking and checking back often!

  39. Excellent post. I was checking constantly this blog and I am impressed! Extremely helpful info specifically the last part 🙂 I care for such information much. I was looking for this particular info for a very long time. Thank you and best of luck.

  40. Having read this I believed it was very informative. I appreciate you taking the time and effort to put this informative article together. I once again find myself personally spending way too much time both reading and posting comments. But so what, it was still worthwhile!

  41. I do not even know how I ended up here, but I thought this post was good. I do not know who you are but definitely you’re going to a famous blogger if you aren’t already 😉 Cheers!

LEAVE A REPLY

Please enter your comment!
Please enter your name here