Setting up a company in Singapore but unsure which structure is best for you?
In the progress and eventual success of your company, choosing the right business structure is important. When choosing a business structure, one thing to consider is its tax and liability structure.
Below, we simply explain how the 6 types of common business structures in Singapore work.
What are the types of companies in Singapore?
1. Private Limited Company
A Private Limited Company allows up to 50 shareholders and offers special tax exemptions and incentives, making it the most popular choice among entrepreneurs.
2. Limited Liability Company
An LLP is a versatile choice for business owners wanting a partnership while retaining a separate legal identity.
3. Subsidiary Company
A Singapore subsidiary company is a private limited company with its own legal identity, which separates it from the parent company. The majority shareholder can be based overseas or locally.
4. Sole Proprietorship
A sole proprietorship only requires one owner to be responsible for all of the business' assets and liabilities.
5. Branch Office
Foreign companies are able to operate in Singapore as non-residents upon registering a branch office. It is an extension of the parent company and is part of the same legal entity. However, branch offices are not eligible for any tax incentives or exemptions.
6. Representative Office
A representative office has a maximum limit of up to 3 years, make it a short-term arrangement. In this set-up, foreign companies are only allowed to explore the Singapore market and are not permitted to engage in selling products/services to generate revenue.
*7. Variable Capital Company
Launched in early 2020, the VCC is an investment vehicle that is set to be a game-changer for Singapore. Providing high flexibility, the VCC is definitely an upcoming popular vehicle to register.
Head over here to check out all the requirements for each type of structure.
Keen to incorporate a Singapore company?
Incorporating a Singapore company is a simple process. Through our partnership with InCorp - Asia’s leading corporate service provider - we can assist you in selecting the right business structure and getting your company started seamlessly.
InCorp goes beyond company incorporation. Dedicated to supporting businesses at every stage and ensuring that compliance requirements are met, InCorp also provides many more services such as corporate secretarial, accounting, taxation, hr & payroll, and business advisory.
Get started on your 2021 entrepreneurship journey here today.
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