How to Incorporate a Company In Singapore: Understanding Business Structures

Setting up business is not a difficult process as long as one takes the time to figure out how to incorporate a company in Singapore using the best resources available. It is prudent to first understand what options is available, beginning with business structures:



Sole-Proprietorship business is a type of Singapore business that is owned and handled by either one individual or one company entity. There will be no partners involved; therefore the sole-proprietor of the business has the absolute say in dealings. However, this also means the owner can be held personally liable for any of the debts and losses incurred in the business.



Companies are legal personalities with the right to own properties and sue or be sued in its own name. There are three options to look out for- private companies, public companies and exempt private companies. Private companies are used to describe companies that currently have either 50 or fewer employees while public companies have more than 50 employees. Exempt private companies can also hold only 20 employees or less. Companies will need to have at least one shareholder and one local resident director in order to qualify for Singapore company formation. Foreigners who want to act as local directors will need to apply for entrepass in order to do so.

Limited Partnerships (LP)


Limited Partnerships businesses work as a partnership between parties. In order to achieve this business structure, business owners have to ensure that there is at least one general partner and one limited partner involved. It should also be noted that Limited Partnerships are not considered a separate legal entity from the partners involved.

General partners are typically the partners that are held responsible for the actions of the Limited Partnership. A limited partner will not be held responsible for any debts or obligations that are beyond the scope of their agreed contribution. However, this is also provided that they are not participating in the LP management. In the event that all general partners do not reside within Singapore, appointing a local partner would be compulsory.

Limited Liability Partnership (LLP)

Business owners can consider opting for Limited Liability Partnership if they are looking for the flexibility of partnership business structures but still wish to maintain a separate legal identity. What is more convenient is that any change in the partners of the Limited Liability Partnership business will not cast any effects on its rights, liabilities or general existence.


In the event that there are liabilities and debts that are incurred by the Limited Liability Partnership, the partners will not be held personally liable unless they have committed wrongful acts and omissions. Business owners who prefer LLP business structures should also note that they should keep all accounting records and any other supporting documentation that can assist with explaining the LLP’s financial position.


By understanding the benefits of each structure, one will find they will better understand how to incorporate a company in Singapore that best works for their preferred business processes.

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