Comparison Chart for Singapore Residents

This guide provides a side-by-side comparison of the different types of business entities in Singapore, namely, Sole Proprietorship, Limited Liability Partnership, and Private Limited Company.

Types of Companies Structure	Sole Proprietorship	Limited Liability Partnership	Private Limited Company
Suitable For	Individual with low risk	Professional firms such as accountancy, law and architecture.	For businesses with projected growth, which may require additional funding for expansion.
Advantages	Low cost Business setup	Low cost setup with limited liability protection	Tax exemptions For new exempt companies only: taxed at the corporate rate; first S$100,000 of net income each year is tax free and the next S$200.000 taxed at 8.5% for the first 3 years.
Disadvantages	Personal Assets Not Protected	None	Compliance obligations such as Financial Reports, AGMs, etc
Ownership	Singapore Residents Foreigners & Corporations allowed only with appointment of a local manager	Singapore Residents Foreigners & Corporations allowed only with appointment of a local manager	100% foreign or locally owned but Minimum one Singapore Resident Director required
Separate Legal Entity	No	Yes	Yes
Cap on Number of Members	One	Unlimited	Maximum 20 for exempt companies
Minimum Setup Requirement	One owner	2 partners	1 shareholder and 1 director (the same individual can be both)
Limited Liability	No	Yes	Yes
Accounts Audit	No	No	Yes, for turnover above S$5 Million or non-exempt companies
Tax Treatment	Taxed at personal income tax rate	Taxed at personal income tax rate	Dividends are tax exempt
Cessation of Business upon Death of a Member/Partner	Yes	Yes	No. Equity shares go on in perpetuity.

Incorporation Options for Singapore Residents and their Corresponding Taxation