Bignews.biz, 13 Nov 2009
Singapore is a pro – business economy that fosters entrepreneurs, through liberal business incorporation regime and favourable tax system. Singaporeans and Singapore residents can freely incorporate a company or register a business in Singapore. Singapore citizen and resident entrepreneurs may choose the type of entity depending on their nature of business and the risk involved.
Option 1
Singapore Private Limited Company
This type of entity is locally incorporated and the name of the venture includes the term ‘Private Limited’ or ‘Pte Ltd’. Citizens, Residents, Employment Pass holders can incorporate a company.
If you or one of your partners is a local resident (Singapore citizen, permanent resident, employment pass, dependent pass holder), this company registration package is for you. In this case, you will not require our local nominee director service. This packages covers all costs related with registration of Singapore company plus acting as Company Secretary for 1 year.
The company is locally incorporated and the name of the venture includes the term ‘Private Limited’ or ‘Pte Ltd’. The number of shareholders cannot exceed 50. 100% foreign ownership is allowed, but must have a citizen or a resident or Employment Pass holder as a local director. Citizens, Residents, Employment Pass holders can incorporate a company. This type is highly suitable for a business that has substantial growth plans and is committed to grow big and may potentially encounter commercial risks along its growth.
Option 2
Singapore Sole Proprietorship / Singapore Partnerships
This type of entity is suitable for small businesses that have negligible or no risks. It is owned by one person who is the decisive authority and owns all the assets and liabilities of the business.
This type of entity is suitable for small businesses that have negligible or no risks. It is owned by one person who is the decisive authority and owns all the assets and liabilities of the business. The business is not separate from the Owner who has unlimited liability. Therefore Sole proprietorship may be the simplest type but it also the riskiest. Foreigner individuals and companies can register a Sole proprietorship but must appoint a local resident manager. Citizens, Residents, Employment Pass holders can register a Sole Proprietorship.
Option 3
Limited Liability Partnership (LLP)
LLP is a perfect blend of partnership set-up and Private Limited Company. This type of entity has been allowed in Singapore since 2005, following the widespread recognition of this entity type in other developed economies around the world.
LLP gives owners the flexibility of operating as a partnership while having a separate legal identity like a private limited company. There must be a minimum of 2 partners. However there is no cap on the maximum number of partners in a LLP.
This type is highly favored by and suitable for individuals engaged in professional services such as lawyers, architects, accountants, management consultants etc. Foreign individuals and companies can form a LLP but must appoint a local manager. Citizens, Residents, Employment Pass holders, local companies can register a LLP.
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