Singapore Business Entities

There are five types of Singapore business entities available to entrepreneurs wishing to start a business in Singapore. Starting a business in Singapore is popular for global entrepreneurs who want to set up a regional or global headquarters in a thriving hub with state-of-the-art communications and a stable local economy. As a member of the Association of Southeast Asian Nations (ASEAN), Singapore is an attractive jurisdiction from which to tap regional opportunities.

Healy Consultants assists entrepreneurs in choosing the most suitable business entity for a company's objectives. The following information on the types of Singapore business entities will help to make an informed decision regarding what suits your business interests.

Entrepreneurs looking to start a business in Singapore should note that the most popular option for foreigners undertaking Singapore company registration is a Company (Private Limited), of which there are two different types:

Sole Proprietorship - This is a business owned by a single person. Unlike the private limited company, this is not regarded as a separate legal entity and therefore, cannot own property. The sole owner is therefore completely liable. Profits are taxed at the owners personal income tax rates.

Partnership - This is a business owned by two or more persons. It is similar to sole proprietorship as it's regarded as a separate legal entity. The partners have unlimited liability and cannot own property in the companies name. Profits are taxed at the owners personal income tax rates.

Limited Liability Partnership (LLP) - This is a business owned by two or more partners, who may be individuals or a company. The partners have limited liability and the company is regarded as a separate legal entity from the partners. Profits can be taxed on personal income, or corporate, tax rates depending on whether partners are individuals or companies.

Limited Partnership (LP) - This is a business with two or more partners, at least one general partner and one limited partner. An LP is not a separate legal entity, the general partner has unlimited liability and the Limited partner has limited liability. As for the LLP, profits are taxed on personal income, or corporate, tax rates depending on whether partners are individuals or companies.

International entrepreneurs starting a business in Singapore enjoy tax-efficient international business, provided revenue is earned outside Singapore and is not remitted into Singapore. For more information see the Inland Revenue Authority of Singapore (IRAS) website. Additionally, S$200,000 (US$153,000) of corporate profits earned in Singapore are tax-exempt for the first three years of trading, providing total annual profits exceed S$300,000.

The Singapore government provides a wide variety of incentives to investors incorporating in Singapore, including financial assistance. For more information, visit the Singapore Economic Development Board (EDB) website.

After starting a business in Singapore, international entrepreneurs access comprehensive double taxation treaties which Singapore has signed with 69 countries around the world. More information about Singapore's DTAs can be found on the IRAS website.

Another major incentive for starting a company in Singapore is the country's world-class business and industrial infrastructure. Also, after starting a business in Singapore clients request Healy Consultants' assistance to obtain corporate finance or aid with listing on the Singapore Stock Exchange.

For additional information on the types of Singapore business entities, contact email@healyconsultants.com or call us in Singapore at (+65) 6735 0120.