What are the Different Types of Companies in Singapore?
- Published: 23 October 2025
- 12 min read
- Starting a Company
Ruth Dsouza
Author
Ruth Dsouza Prabhu is a content developer with a passion for turning ideas into clear, engaging narratives. With a strong background in marketing communications and lifestyle writing, she simplifies complex business topics for entrepreneurs. Her work spans strategy, storytelling, and thought leadership, always focused on clarity, credibility, and impact.
Nisah Rahim
Reviewer
Nisah Rahim is our go-to expert reviewer for all things Corporate Secretary-related in Singapore. As the Corporate Secretary Team Lead and content reviewer, Nisah meticulously examines our blog posts to ensure we provide comprehensive information on Corporate Secretary services such as local regulatory compliance, managing board meetings, maintaining company records, and providing expert advice on corporate governance matters.
Imran Marican
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Imran Marican, ATA SCTP member, is our Corporate Tax Assistant Manager based in Singapore, with almost a decade of experience in Singapore corporate tax. With in-depth knowledge of Singapore corporate tax law and regulations, he can help with corporate tax compliance that matters to every company. While our business writers transform complicated tax jargon into easy-to-understand concepts, as a reviewer for the Osome blog, Imran ensures our content is accurate and relevant, helping our readers boost their businesses with helpful tips and insights.
When starting your business in Singapore, choosing the right business structure is an essential start. This article breaks down the types of business entities in Singapore, including Private Limited Companies, Public Companies, Partnerships, and Sole Proprietorships, helping you decide which structure best fits your needs.
Key Takeaways
- Private Limited Companies (Pte Ltd) are the most common business structure in Singapore, offering limited liability and potential tax incentives for growth.
- Public Companies can raise capital through public share offerings, but they face stricter requirements from the corporate regulatory authority as well as higher administrative burdens.
- Partnerships provide shared resources and responsibilities but come with unlimited liability risks, except in structures like Limited Liability Partnerships (LLP).
Overview of Business Structures in Singapore
Singapore offers different kinds of business entities. Here is a comparative table to help you understand the various options you have.
Category | Sub-Type | Key Features | Ownership / Liability | Tax & Compliance | Best Suited For |
|---|---|---|---|---|---|
| Private Limited Companies | Private Limited Company (Pte Ltd) | Separate legal entity; up to 50 shareholders; continuity despite changes in ownership | Min. 1 shareholder & 1 director; liability limited to shareholding | 17% corporate tax; tax relief (75% on first S$ 100,000 for 3 yrs); must appoint director, company secretary, auditors | Growing and scalable businesses; can be fully foreign-owned |
| Exempt Private Limited Company | Subset of Pte Ltd; max. 20 shareholders (individuals only) | Limited liability | Similar compliance to Pte Ltd | Smaller firms wanting tighter shareholder structure | |
| Public Companies | Public Company | More than 50 shareholders; can raise funds from public | Limited liability | Higher transparency & governance requirements | Large corporations seeking capital expansion |
| Public Company Limited by Shares | Shares can be listed and traded; can issue shares/debentures | Shareholder liability limited to investment | IPO prospectus must be filed with MAS | Companies aiming for stock exchange listing | |
| Public Company Limited by Guarantee | No share capital; non-profit focus (charities, education, NGOs) | Members’ liability limited to guaranteed sum | No dividend distribution; strict compliance | Non-profits and public-interest organisations | |
| Partnerships | General Partnership | 2–20 partners; simple to set up; not a separate legal entity | Unlimited liability for all partners | Partners taxed at personal income rates | Small businesses with trusted partners |
| Limited Partnership (LP) | At least 1 general partner (unlimited liability) + 1 limited partner (liability capped) | Split liability model | Must reclassify if no limited partner remains | Investors wanting passive role | |
| Limited Liability Partnership (LLP) | Separate legal entity + partnership flexibility | Partners have limited liability (except misconduct) | Perpetual succession; annual filings required | Professional firms and consultancies | |
| Sole Proprietorships | — | Single-owner business; easiest to start; limited continuity | Owner personally liable for debts | Profits taxed as personal income | Freelancers, consultants, solo traders |
Main Types of Company Structures in Singapore
You can choose from four main types of business entities in Singapore: Private Limited Companies, Public Companies, General or Limited Partnerships and Sole Proprietorships, each with categories within them:
1 Private Limited Companies (Pte Ltd)
Private Limited Companies, commonly referred to as Pte Ltd, are the most prevalent business entities in Singapore. A Pte Ltd is a private company limited by shares. They are a separate legal entity functioning as a limited liability company and raising capital via shares.
Highlights
- Separate legal entity; up to 50 shareholders
- Minimum 1 shareholder and 1 director
- Can be wholly foreign-owned; continuity despite ownership changes
Key points
- Liability: Limited to shareholding
- Tax: Corporate tax 17%; 75% exemption on first S$ 100,000 of taxable income for first 3 years (where eligible)
- Compliance: Appoint director, company secretary; auditors as required
- Best for: Growing businesses seeking investment or scale
Private Limited Companies are the most common business structure in Singapore, offering limited liability and tax benefits. They are suitable for businesses aiming for growth and seeking external investment.
1.1 Exempt Private Limited Company
An Exempt Private Limited Company is a Pte Ltd variant with a capped, individual-only shareholder base for smaller, closely held firms. This structure is a type of exempt private company with capped shareholders. Even exempt firms must appoint a qualified company secretary within six months of incorporation. An Employment Pass holder can serve as a director, provided one director is ordinarily resident.
Highlights
- Max 20 shareholders; shareholders must be individuals (no corporates)
- Retains Pte Ltd benefits with a leaner ownership structure
Key points
- Liability: Limited to shareholding
- Tax & compliance: Same tax rules as Pte Ltd; similar filings
- Best for: Small/family-owned firms wanting a simple shareholder base
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2 Public Companies
Public Companies are business entities that can have more than 50 shareholders and have the ability to raise funds by selling shares to the public, as outlined in the Singapore Companies Act.
2.1 Public Company Limited by Shares
A Public Company Limited by Shares is a broad public entity that can have 50+ shareholders and raise capital publicly, also according to the Singapore Companies Act.
Highlights
- Shares tradable on a stock exchange; unlimited members beyond 50
- Can issue shares or debentures to the public
Key points
- Liability: Limited to investment
- Compliance: Must register IPO prospectus with MAS before public offering
- Best for: Companies planning IPO / public fundraising
2.2 Public Company Limited by Guarantee
A Public Company Limited by Guarantee is a non-profit organisation that performs public interest activities. These entities do not issue shares and are focused on non-profit objectives, commonly serving as charities and educational institutions. Public Companies Limited by Guarantee are typically non-profit organisations; they have no share capital and limit members' personal liability to their contributions.
Highlights
- No shares; members guarantee a contribution amount if called upon
- Common for charities, educational and public-interest organisations
Key points
- Liability: Limited to guaranteed sum agreed by members
- Tax & compliance: Non-profit regime; no dividends
- Best for: NGOs, charities, societies and similar bodies
ACRA also separately tracks Public Accounting Firms, which are regulated entities providing audit and assurance services. While not PLCs, they are listed distinctly in the registry statistics, highlighting the diversity of entity types in Singapore.
3 Partnerships
Partnerships in Singapore are collaborative business arrangements between two or more parties aiming for profit sharing. This model suits business owners who want collaborative management but accept liability risks.
Highlights
- Relatively simple to establish
- Attractive for professionals and small businesses
- Require a minimum of 2 partners
- Can have up to 20 partners (unless professional, which may allow more)
- If partners exceed 20, must register as a company
Key Points
- Liability: Unlimited for partners unless structured as Limited Partnership or Limited Liability Partnership
- Tax: Partners taxed at personal income tax rates
- Best for: Professionals and small enterprises seeking shared ownership
3.1 General Partnership
A General Partnership is formed when two or more partners manage and share profits and losses. Unlike other business structures, General Partnerships are not considered separate legal entities, meaning the partners are personally liable for the business’s debts and obligations. This unlimited liability can be a significant risk, as partners are jointly accountable for all obligations. A partnership's company's existence depends on the partnership agreement, and it ceases to exist if a partner dies or the agreement is dissolved. Each partner is jointly liable for the debts incurred by other partners.
Highlights
- Typically 2–20 partners (professionals may differ)
- Simple to form; not a separate legal entity
Key points
- Liability: Unlimited and joint for partners
- Tax: Partners taxed via personal income tax rates
- Best fo r: Small professional groups or trusted business partners
3.2 Limited Partnership (LP)
A Limited Partnership (LP) includes at least one general partner with unlimited liability and one limited partner whose liability is confined to their investment. The Limited Partnership structure in Singapore includes both general partners, who have unlimited liability, and limited partners, whose liability is limited to their capital contributions.
Highlights
- At least 1 general partner (unlimited liability) + 1 limited partner (liability limited to capital invested)
- Limited partners do not manage day-to-day operations
Key points
- Liability: Split: general = unlimited; limited = up to investment
- Compliance:Must reclassify if no limited partner remains
- Best for: Investment vehicles where passive capital is sough
Best for: Investment vehicles where passive capital is sough
3.3 Limited Liability Partnership (LLP)
As the name suggests, Limited Liability Partnerships is a legal entity that preserves partnership management with limited liability. A limited partnership is still treated as a limited liability company under law, and has its own legal identity. Partners are shielded from most debts, but personal misconduct still creates legal liability.
Highlights
- Separate legal personality; partners manage directly
- Perpetual succession until wound up
Key points
- Liability: Limited for partners except for personal misconduct
- Compliance: Annual filings and statutory requirements apply
- Best for: Professional firms (law, accountancy, consultancies)
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Sole Proprietorships
Sole Proprietorships are the simplest business entities in Singapore, businesses owned by one individual with personal liability. Unlike other business structures, registrations of sole proprietorships are not considered separate legal entities, meaning the business owner is personally liable for all business debts and obligations. This can pose a significant risk to personal assets, but the simplicity and ease of setup make it an attractive option for freelancers, consultants, and small-scale traders. The sole proprietorship structure is ideal for solo business owners with low compliance needs.
Highlights
- Single owner; simplest registration and operation
- Profits taxed at the sole proprietorship owner’s personal income tax rates
Key points
- Liability: Unlimited — owner’s personal assets at risk
- Continuity: Ends if owner stops trading or dies
- Best for: Freelancers, solo traders, micro-businesses
Sole Proprietorships and Partnerships make up the second-largest group of business entities in Singapore, after companies, according to ACRA Business Registry Statistics.
Types of Foreign Company Registration in Singapore
Foreign companies that want to establish a presence as a company in Singapore can choose from three main registration options. These options include Subsidiary Company, Branch Office, and Representative Office. Each option for foreign company registration offers different levels of legal identity, operational scope, and compliance requirements, allowing foreign companies to choose the structure that best suits their needs.
Understanding the distinctions between these options is crucial for foreign investors and businesses aiming to enter the Singapore market effectively.
Entity Type | Key Features | Ownership / Liability | Tax & Compliance | Best Suited For |
|---|---|---|---|---|
| Subsidiary Company | Registered as a local company under Singapore law; operates independently though owned by foreign parent company | Separate legal entity; limited liability | Eligible for local corporate tax rate 17% and incentives; treated as local company | Foreign investors seeking full local presence and tax benefits |
| Branch Office | Extension of foreign parent company; no separate legal identity | Parent company fully liable for all obligations | Taxed as non-resident at the corporate tax rate of 17%; must file parent and branch accounts annually | Foreign companies wanting direct control without creating a separate entity |
| Representative Office | Temporary setup; non-commercial activities (research, liaison, admin only) | Not a legal entity; cannot generate revenue | No corporate tax as no commercial activity; short-term status | Foreign companies testing market potential before full entry |
Subsidiary company
Subsidiary company is a locally registered company owned by a foreign parent, operating as an independent legal entity. A subsidiary company is a separate legal entity incorporated under Singapore law, typically owned by a foreign company.
Highlights
- Registered under Singapore law as a local company
- Operates independently from the foreign parent
- Offers limited liability protection
Key Points
- Liability: Limited to subsidiary company's assets
- Tax: Treated as a local company; corporate tax 17% with incentives
- Best for: Foreign investors seeking full local presence and tax benefits
Branch office
A Singapore branch office is a foreign company operating in Singapore with no separate legal identity.
Highlights
- Operates as part of the parent company
- Direct control retained by the parent
- Must file both branch and parent accounts
Key Points
- Liability: Parent company fully liable for debts and obligations
- Tax: Taxed as a non-resident at 17%
- Best for: Companies wanting control without forming a separate entity
Representative office
Representative office is a temporary, non-commercial setup for administrative or research functions. These setups are non-commercial and cannot perform direct business operations.
Highlights
- No legal identity; cannot generate revenue
- Used mainly for market research and liaison purposes
- Intended as a short-term arrangement
Key Points
- Liability: Not applicable as no commercial activity
- Tax: Not subject to corporate tax
- Best for: Companies testing the Singapore market before committing
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How to Choose the Right Business Structure for a Company in Singapore?
Choosing between the types of business entities in Singapore depends on factors such as capital investment, number of owners, liability, and long-term goals. Evaluating liability, ownership, and goals will help identify the most suitable business structure. Each entity type carries distinct advantages and challenges, so it’s important to choose one that aligns with your business needs and growth ambitions.
When deciding on the best fit, consider the following questions:
- Capital investment– How much capital are you ready to commit at the outset and over time?
- Ownership – Will the business be run by you alone, or are there multiple partners or shareholders, and how many owners are allowed under the chosen entity?
- Liability– What level of personal liability and responsibility are you prepared to take on?
- Risk appetite– How much risk are you willing to bear in managing and sustaining the business?
- Entity benefits– What are the key advantages and limitations of each business entity type in Singapore?
- Exit flexibility– How straightforward would it be to wind up or close the business if required?
By weighing these factors, you will be better positioned to select a structure that supports both your immediate requirements and long-term vision.
Summary
Choosing between the types of business entities in Singapore is pivotal for the success, business growth potential, and sustainability of your business. Choosing between a private company and public structure depends on capital needs and compliance obligations. From the flexibility and limited liability of Private Limited Companies to the simplicity of Sole Proprietorships, each business entity offers distinct advantages tailored to different business needs. Public Companies provide opportunities for significant capital raising, while Partnerships offer collaborative benefits. For foreign companies, options like Subsidiary Companies, Branch Offices, and Representative Offices offer various levels of commitment and operational scope.
Ruth Dsouza Prabhu is a content developer with a passion for turning ideas into clear, engaging narratives. With a strong background in marketing communications and lifestyle writing, she simplifies complex business topics for entrepreneurs. Her work spans strategy, storytelling, and thought leadership, always focused on clarity, credibility, and impact.
