Types of Companies in Singapore

Foreign investors have several options to choose from when establishing a company in Singapore. Our team of lawyers can help you register any of the legal entities available under the local law.

Quick Facts
Types of legal entities in Singapore	There are several types of companies in Singapore, such as: – unlimited companies; – public companies; – private company; – exempt company; – sole trader; – the branch office/representative office.
The characteristics of the LLC	The LLC (limited liability company) is known as a private company limited by shares in Singapore. It is a company type that can be incorporated by maximum 50 shareholders (individuals and companies), which has a share capital. The liability of the shareholders is limited to their capital contributions.
The characteristics of the joint stock company	The joint stock company (or the public company limited by shares) can list its shares to the general public. It can have more than 50 shareholders. It is necessary to register it with the Monetary Authority of Singapore when making public offerings.
The characteristics of the partnership	Investors can register a limited partnership through the association of at least 2 partners. 1 partner must be a general partner, and the other, a limited partner, and they can be individuals or other companies.
The characteristics of the sole trader	It is incorporated by a single businessman. There isn't any legal distinction between the owner and the business, therefore the owner holds full responsibility for any corporate debts.
The characteristics of the branch	One of the company types in Singapore is the branch office, which is registered as a subdivision of the parent company abroad, for which the parent has full rensposibility. Its incorporation must be done following the regulations of the Companies Act in Singapore.
Legislation regulating company incorporation in Singapore	Companies Act.
Corporate taxes	– 17% – corporate tax; – 9% – GST; – 17%  employers and 20% employees – social security contributions (to the Central Provident Fund); – Foreign Worker Levy (the rate depends on the industry).
Foreign ownership rules	Foreign investors benefit from the same ownership rights as local residents/citizens (they can own 100% of the shares of a company).
Double tax treaties signed by Singapore	93 treaties (and 9 limited double tax treaties)
Main company registration steps	– select one of the company types in Singapore; – reserve a business name; – find a business address and register it with the Accounting and Corporate Regulatory Authority (ACRA); – address any other authorities, such as the Inland Revenue Authority of Singapore (IRAS).
Corporate tax number required (yes/no)	Yes
Resident director/shareholder requirements	The foreign investor must appoint a resident director. Provided that the investor is not a Singaporean resident, he/she must appoint a registered agent, such as our team of lawyers.
Can investors modify the legal entity of a Singaporean company?	The legal entity can be modified only by de-registering the first company and then incorporating a new one.
Ways in which our team can assist investors	Our team can offer professional company incorporation services, representation in front of local institutions, accounting services, tax consultancy, immigration services and many others.

What are the main company types in Singapore?

According to ACRA, there are 7 types of companies that can be incorporated in Singapore, as follows:

1. unlimited companies – 3 types – the unlimited private company, the unlimited exempt private company and the unlimited public company;
2. public companies – 2 types –  the public company limited by shares and the public company limited by guarantee; Our team can also help you set up a limited company in Singapore.
3. private company – 1 type – the private company limited by shares; 
4. exempt company – 1 type – exempt private company.  

What are the rules for appointing directors and other management personnel in Singapore? 

For all the company types presented above – the ones that are corporate entities (the 7 types presented earlier), the company’s founders must appoint directors and company secretary. The director requirements in Singapore impose the following: 

1. the director of the company must be a resident in Singapore;
2. he or she must have an age of minimum 18 years old;
3. he or she must have full legal capacity;
4. the person can be a Singapore citizen, a Singapore permanent resident or a foreigner who has received an Employment Pass. 

Can I incorporate partnerships in Singapore?

Foreign businessmen can open partnerships in Singapore that are divided into 3 types, as follows:

1. partnership;
2. limited partnership;
3. limited liability partnerships. 

What are the main characteristics of partnerships?

The common characteristics of the first 2 partnerships mentioned above are: 

1. they are not considered separate legal entities, therefore there isn’t any difference between the partners and the business;
2. they can’t own property in their own name; 
3. they can’t sue a third party and a third party can’t sue the partnerships, they need to sue the partners; 
4. the partners are liable for the debts of the partnerships with their personal assets. 

What are the characteristics of the limited liability partnership (LLP)?

The LLP retains the main characteristics of a partnership, while combining the basic characteristics of a limited liability company. Other important aspects concerning the LLP are presented below, with the help of our Singapore law firm: 

• the registration application formalities can be completed in 15 minutes and the entire procedure can be completed in minimum 14 days to maximum 60, provided that the approval of other institutions is necessary; 
• the LLP is incorporated by at least 2 founders, who have the quality of partners;
• the LLP needs to have 1 manager who has his or her residency in Singapore;
• the appointed manager must have an age of minimum 18 years old;
• for the registration of the LLP, investors must pay a fee of $115.

The infographic below presents details on the legal entities in Singapore:

Is there a maximum number of shareholders stipulated by law?

Yes, if you want to start a business in Singapore and associate with more investors, you should be aware of the fact that most of the company types can have a certain maximum number of shareholders. In this sense, our lawyers in Singapore mention:

• maximum 20 shareholders – this requirement applies for the unlimited exempt private company and the exempt private company;
• maximum 50 shareholders – available for the private company limited by shares;
• no maximum number of shareholders – the unlimited public company and the public company limited by shares.

Who can be the shareholder of a company in Singapore?

Shareholders can be local residents, citizens and foreigners. They can be natural persons or legal entities in most of the cases, but you should know that for certain corporate entities, only natural persons are accepted as shareholders. This is the case for:

1. the exempt private company;
2. the unlimited exempt private company.

How can I expand a foreign business on the local market?

Foreign investors have the possibility of expanding their operations in Singapore by incorporating the following:

1. the branch office (a subdivision of the parent company, fully dependent on the parent);
2. the subsidiary (set up by the parent company as a separate legal entity, incorporated as one of the business forms regulated by the Commercial Law);
3. the representative office (a subdivision of the parent company which is set up for non-commercial purposes).

In case you need more details about setting a branch office in Singapore, please watch our video below:

Is the sole trader recognized in Singapore?

Yes, the sole trader is a type of structure that can be registered here. It is specifically created for natural persons who want to carry out a business activity in their own name.

Can foreigners open a sole trader?

Yes, this structure is not limited solely to locals, as foreigners can also register it, provided that they meet specific obligations. This is possible for:

1. foreigners who have obtained a Singpass;
2. foreigners who do not have a Singpass, in which case they need to appoint a Corporate Service Provider (CSP) – our team can assist in this matter.

How long does it take to register a company in Singapore?

The duration of the registration process varies based on the type of company selected for incorporation. In general, it takes around 1-3 days (the basic incorporation formalities). For personalized information, you can address to our team of lawyers in Singapore.

We invite you to watch a short presentation on the main legal entities in Singapore: 

For information about the requisites for opening a company you can contact our lawyers in Singapore.