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Comparison of 5 Common Types of Business Entities

Sole-proprietorship General Partnership Limited Liability Partnership Limited Partnership Private Limited Company
Suitable for you who is … to run a low risk business on your own. to run a low risk business together with other partner(s). to run a professional business together with other partner(s). to run a medium risk business together with other partner(s). to run a relatively high risk business, whether or not with other partner(s).
Who can be the owner(s)?
  • A Singapore resident
  • A local company
  • A foreigner or a foreign company, provided a local resident manager is appointed.
  • Singapore residents
  • Local companies
  • Foreigners or foreign companies, provided:
  • a local resident manager is appointed; or
  • one of the partners is residing in Singapore.
  • Singapore residents
  • Local companies
  • Limited Liability Partnerships (LLPs)
  • Foreigners or foreign companies, provided:
  • a local resident manager is appointed; or
  • one of the partners is residing in Singapore.
  • Singapore residents
  • Local companies
  • Foreigners or foreign companies, provided:
  • a local resident manager is appointed; or
  • one of the partners is residing in Singapore.
  • Singapore residents
  • Local companies
  • Foreigners
  • Foreign Companies
Number of owner 1 2 to maximum of 20 At least 2 At least 2 1 to maximum of 50
Limitation on liability Unlimited Unlimited Limited
  • Unlimited for the general partner
  • Limited for the limited partner
Limited
Audit requirement No No No No Yes, if:

  • The annual turnover is more than S$5 million; or
  • One of the owners is a company.
Tax implication At owner’s level. At owner’s level. At owner’s level. At owner’s level. At company’s level.

For more details, please see Sole-proprietorship, General Partnership, Limited Liability Partnership, Limited Partnership and Private Limited Company.

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