Singapore Company Business Structures

By Author: Robert Sparks
Total Articles: 68
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The first consideration for local and foreign entrepreneurs who wish to incorporate a Singapore company is to to decide on the right business entity that will meet their business needs. Rikvin can help you incorporate your company within an hour if all required information and documents are in place.
Below are the common business structures available in Singapore.

For Singapore residents:
• Private Limited Company is the most popular business entity in Singapore. Unlike business entities such as a Sole Proprietorship and Limited Liability Partnership, it has a separate legal status from its shareholders and directors who have limited liabilities for the debts and losses of the company. It usually has the words ‘Pte Ltd’ or ‘Ltd’ as part of its name. In many European countries or the US, it is commonly known as a Corporation.
• A Limited Liability Partnership (LLP) is a perfect blend of a partnership with private limited company setup. A LLP gives owners the flexibility of operating as a partnership while having a separate legal identity like a private limited company. This type is highly ...
... suitable for individuals engaged in professional services such as lawyers, architects, accountants and management consultants. Singapore citizens, residents, and employment pass holders can register a LLP. Foreign individuals and companies may also register a LLP but must appoint a local manager.
• A Sole Proprietorship is the simplest form of business entity with only one owner who is the decisive authority and responsible for all assets and liabilities belonging to the business. Citizens, residents, Employment Pass holders may register a sole proprietorship. Foreigner individuals and companies may also register a sole proprietorship but must appoint a Singapore resident manager.
For Foreign Entrepreneurs:
• A Subsidiary Company in Singapore is an incorporated private limited company, which the majority of shares are held by a corporation, foreign or local. A Subsidiary Company in Singapore is considered a resident company. A newly incorporated Subsidiary Company , with at least one individual shareholder that has a minimum of 10% shareholding, is entitled to the local tax exemption of zero tax for the first S$100,000 of its chargeable income.
• A Branch Office in Singapore is an extension of a foreign parent company registered outside of Singapore. The purpose of a Branch Office is to facilitate operation and revenue generation in Singapore for the foreign parent company. It is considered a non-resident for tax purposes, and therefore not eligible for tax incentives and exemptions available to Singapore private limited companies.
• A Representative Office provides a foreign company interested in establishing operation in Singapore an avenue to assess business opportunities in Singapore market prior to making any long term or large-scale commitment. It is ideal for market research or to establish relationship with local agents representing the company. A Representative Office cannot engage in commercial revenue-generating activities. However, foreign companies that want to maintain long-term operations in Singapore will be required to incorporate a company.

Rikvin provides a full spectrum of corporate services under one roof for singapore company registration, assistance to form a singapore company, accounting, tax, work pass and related compliance services for individuals and companies worldwide.