You Should Know the Types of Companies in Singapore Before Incorporating Your Own
Different factors come into play while you are registering a company type and it is not dependent on a single element. This could be rather confusing, especially if you are looking forward to registering your first company in Singapore and to help you with that, here, we made a list of the types of companies in Singapore.
Sole Proprietorship
A sole proprietorship is where a business is owned by a particular person. Meaning that you, as the owner are responsible for all the finances of the company. This is a simple company setup, and in a sole proprietorship, you can claim rights to all the profit your business makes, but it also means that you will be responsible for the losses, debts or other expenditures, including the tax assessments. Let us say that the setup is one with the most potential, but at the same time, the riskiest among all the business types in Singapore.
Limited Liability Company
An LLC is a type of company, where you are not personally responsible for the expenses or other liabilities. This type of company set up lets your business be a separate legal entity, and in simple terms, and in simple terms, an LLC means that you are responsible for what you spend.
Private Limited Company
This is one of the most popular types of companies in Singapore. In this company, there could be 50 or fewer shareholders, and the share is not made available to the general public. The shareholders are not responsible for the loss of the company, and it is a straightforward process to transfer or deal the shares. The tax rate is 9% or profits less than S$300,000 and 17% for more. A private limited company doesn’t have to pay any capital gains tax.
Public Limited Company
This is the type of the company suited for the big businesses, and when we say big, we mean very large firms. It is different from a Private Limited Company in terms of the shares being made available to the general public and also, the structure is somewhat complicated.
Public Company Limited by Guarantee
This is a type of company structure for non-profit organizations. A Public Company Limited by Guarantee is a company set up in such a way that there are separated legality and limited liability for all the members. The company doesn’t have shares or shareholders and someone agrees to pay the debts.
Partnership
As its name suggests, this is a company arises from the partnership of two or more entities. The different kinds of partnership companies in Singapore are:
General Partnership
Let us say; it is the partnership ‘version’ of the sole proprietorship. In this type of partnership, every member is responsible for their individual profits or losses. Their contributions to the company will determine the percentage for both. Everyone has to pay their own shares of the taxes, and each member’s actions affect another. So, everyone should take part in the management of the business.
Limited Partnership
The partnership is limited, according to its name. As a partner, you are only responsible for your investments or liabilities. You might not be able to take part in any business management. Let us say it is a secondary approach as a partner of the company.
Limited Liability Partnership
In this type of partnership, two or individuals, with expertise in different fields come together to build a business. This means each of them shares the responsibility. It includes all the financial agreements including the dividing of the profit, tax or losses. While partners share the load, take note that they have different responsibilities in their own fields.
Well, these were the types of companies in Singapore. I hope it helped you to find and register the ideal type of company according to your needs.
