Singapore Business Registration
Types Of Singapore Business Registration
Singapore Business Registration Overview
As a business-friendly economy, Singapore is naturally very supportive of all businesses in the country. It encourages them to flourish by providing transparent and reliable rules and regulations, straightforward registration policies, and competitive tax rates among others. For those who are planning on Singapore business registration, there are several types of business entities allowed in the country.
A business can be a sole proprietorship, which is owned by one person. It is probably the best setup for small businesses because the owner has the sole authority. It has no separate legal entity, which means that the owner is personally liable for the debts and losses of the business.
A Partnership type of business can be Limited Partnership (LP) or Limited Liability Partnership (LLP). LP has at least two partners and at most twenty partners, with one should be a general partner and the other a limited partner. It doesn’t have a separate legal entity as well, making all general partners liable for the debts and losses of the business. The limited partners are not personally liable for the debts and losses of the business beyond their agreed contribution.
LLP is a fairly new type of business entity in Singapore. It has a minimum of two partners, but it has no maximum number of partners allowed. Unlike LP, LLP has a separate legal identity from its partners.
The other type of business entity is Private Limited Company. It is a locally incorporated company in Singapore and, like LLP, it has a separate legal identity from its shareholders. The members are not personally liable for the debts and losses of the company.
Other Types Of Singapore Business Registration For Foreign Companies
There are other two types of businesses that operate in Singapore for foreign companies. The first is a branch office. A company that is registered outside Singapore may run their operations in the country through a branch office, which is an extension of the main company without a distinct legal identity but should be registered as such in Singapore. The main office must appoint two Singapore residents as legal agents of the branch office.
Another type of Singapore business registration for foreign companies is a Representative Office. Like a branch office, a Representative Office has no distinct legal status and is just an extension of the foreign company. But unlike a branch office, it is only viewed as a liaison office. It is not allowed to conduct any business activity that yields profits. It is a temporary administration office that the foreign company has set up in Singapore to manage and coordinate activities of non-commercial nature on its behalf.