Owned by |
One person |
Generally between two and20 partners. A partnership of more than 20 partners must incorporate as a company under the Companies Act, Chapter 50 (except for professional partnerships) |
Exempt Private Company –20 members or less and no corporation holds beneficial interest in the company’s shares
Private Company – 50 members or less
Public Company – can have more than 50 members |
Legal Status |
Not a separate legal entity
Owner has unlimited liability
Can sue or be sued in individual’s own name
Can own property if individual has legal capacity
Owner personally liable for debts and losses of business |
Not a separate legal entity
Partners have unlimited liability
Can sue or be sued in its firm’s name
Cannot own property in firm’s name
Partners personally liable for partnership’s debts and losses incurred by other partners |
A separate legal entity from its members / shareholders / investors and directors
Owners have limited liability
Can sue or be sued in its own name
Can own property in company’s name
Members not personally liable for debts and losses of company |
Registration Requirements |
Age 18 years or above
Singapore citizen/Singapore permanent resident/ Employment Pass holder/ Dependent Pass holder
If owner(s) not resident in Singapore, they must appoint a local manager who is resident in Singapore
Self-employed persons must top up their Medisave account with the CPF Board before they register a new business name, become the registrant of an existing business name, or renew their business registration
Un-discharged bankrupts may not be allowed to register business registration |
Age 18 years or above
Singapore citizen/Singapore permanent resident/ Employment Pass holder/ Dependent Pass holder
If owner(s) not resident in Singapore, they must appoint a local manager who is resident in Singapore
Self-employed persons must top up their Medisave account with the CPF Board before they register a new business name, become the registrant of an existing business name, or renew their business registration
Un-discharged bankrupts may not be allowed to register business registration |
Any person above the age of 18 years
At least one shareholder
At least one director ordinarily resident in Singapore
If a foreigner wishes to act as a local director of the company, he can apply for an Employment Pass from the Work Pass Division of the Ministry of Manpower under the Entre Pass scheme
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Formalities and Expenses |
Quick and easy to set up
Easy to administer and manage
Must renew registration annually |
Quick and easy to set up
Easy to administer and manage
Must renew registration annually |
formalities and procedures to comply with
Must appoint a company secretary within 6 months of incorporation
Must appoint an auditor within 3 months after incorporation unless the company is exempt from audit requirements
Annual Returns must be filed
Statutory requirements for general meetings, directors, company secretary, share allotments, etc. |
Taxes |
Profits taxed at owner’s personal income tax rates
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Profits taxed at partner’s personal income tax rates
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Profits taxed at corporate tax rates
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Continuity & Transferability |
Exists as long as the owner is alive and desires to continue the business
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Exists as long as the partners agree it will and as long as all of the general partners remain in the partnership
If a general partner dies or leaves the partnership, usually the partnership dissolves and the assets of the partnership must be sold or distributed to pay first the creditors of the partnerships and then the partners.
The partnership agreement may provide for the continuation of the business |
The company, as a separate legal entity, does not cease to exist if one or more of its shareholders die
Its corporate existence lasts as long as its shareholders decide it should. A company’s life is usually perpetual
Ownership of a company can be transferred and additional shareholders can be appointed
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Closing the Business |
By Owner, Termination or Cessation of business
By Registrar – if the registration has expired and has not been renewed |
By Owner - Termination or Cessation of business
By Registrar – if the registration has expired and has not been renewed |
Striking Off
Winding Up – Voluntarily by members or creditors, Compulsorily by the High Court
Public Company – can have more than 50 members |