A sole proprietorship is a type of single-person business structure. The sole proprietor (i.e. the owner) exercises decisive authority and responsibility over all assets and liabilities of the corporation. The sole proprietor is not a separate legal entity from the corporation and is therefore fully liable for the corporation`s losses and debts. Sole proprietorships do not benefit from tax incentives and exemptions for limited liability companies. When starting a business in Singapore, it is important that you know all your options for business types. A limited liability company has its own legal personality, separate from its shareholders and directors, which allows it to enter into contracts, acquire assets, incur debts, sue and be sued in its own name. Accordingly, the liability of the Company`s shareholders is limited to the amount used to acquire shares of the Company. Your private wealth cannot be used to repay the debts or liabilities of the limited liability company; Such debts cease with the company.
The partnership business structure is intended to address the limited expansion constraint placed on a sole proprietorship by allowing two or more people to start and become co-owners of a business. A partnership does not have a separate legal existence from its partners. It ends with the death, insolvency, legal incapacity or departure of a partner. In addition, any dissatisfied or dissatisfied partner may terminate the dissolution of the corporation at any time. A business structure based on partnership can only make sense in a very limited number of situations. We generally do not recommend this type of business structure to business owners. Partnerships in Singapore can be of three types: There are 4 main types of business structures to choose from. Singapore`s success and recognition as one of the easiest places to do business is largely due to its simple and comprehensive system of corporate structure and governance, which is easy for foreign entrepreneurs or investors to understand and understand. However, there are certain advantages and disadvantages of each business unit and its associated business structure that are not immediately apparent. This article provides a comparative analysis of business unit types and business structure and is a useful guide for any entrepreneur or foreign investor interested in setting up a business in Singapore. A public limited company is only for non-profit organizations that perform work for the national or public interest, such as charities or art. Therefore, this form of legal structure is not discussed in this article.
Partners are legally liable for their own negligence, misconduct; and are exempt from any liability arising from the supervision of other partners. The LLP is a legal entity and has a legal personality distinct from its partners. The LLP has a permanent successor. A change of partners of a LLP does not affect its existence, rights or responsibilities. A sole proprietorship is run by a single business owner and is the simplest type of business structure. While a sole proprietor has full control over the business and its operations, they are also personally liable for all debts and legal actions against the business. A business owned and operated by a person (the sole proprietor) that does not have a legal distinction between the owner of the business and the business entity. This person is entitled to all profits of the company and has unlimited personal liability for all his debts and obligations. The subsidiary acts as a separate legal entity from the parent company, which confers the following advantages: Since it is wholly owned and controlled by the sole proprietor, the sole proprietor has unlimited liability and can be sued on his or her own behalf or on behalf of the company. A sole proprietorship is not considered a separate legal entity. A limited liability company is an LLC in which shares are held by fewer than 50 people and are not open to the public. Most private companies in Singapore are registered as limited liability companies.
The name of a limited liability company in Singapore usually ends with Private Limited or Pte Ltd. For example, our company, Hawksford Singapore Pte Ltd, is registered as a limited liability company. The shareholders of a limited liability company may be natural or legal persons, or both. A limited liability company is the most advanced, flexible and scalable type of business in Singapore. It is also Singapore`s most preferred type of business unit for serious entrepreneurs (as opposed to sole proprietorships or limited liability companies). For more information on limited liability companies, see the Singapore Business Registration Guide.