Choose your Structure Business

Having Structure Business in Singapore is crusial!!. The business structure determines how the business is managed and the personal liabilities of its owners, its means structure business impact how it’s run and your personal liability for things like taxes and legal rules.

Structure Business also can ensure compliance, minimize risk and ensure operational efficiency which also affects the long-term success of a company, and here are some types of business structures in Singapore.

Sole Proprietorship

Sole propership is a business that can be owned and controlled by an individual. set up a sole proprietorship you must be at least 18 years old and to qualify as Sole Propretorship you must be a Singaporean citizen, permanent resident (PR), or have an eligible FIN holder.

However, It’s important to note that sole proprietorship also have some drawbacks:

1. unlimited Personal liability: As the sole owner, you are personally liable for the business debts and obligations
2. Limited Access to capital: Raising capital can be challenging as a sole proprietor
3. Limited Succession Planning: it can be difficult to transfer ownership or find a successor for the business.

Sole Proprietorship in Singapore are a suitable for individuals starting small businesses with minimal risk and seeking a simple and cost-effective structure. However, the unlimited liability and limited funding options make it less attractive for businesses with significant growth potential or those operating in high-risk industries. Entrepreneurs should carefully weigh the advantages and disadvatages before deciding on the most approproate business Structure for their needs.

Partnership

A partnership is a business owned by at least two partners. and can be individuals who agree to share ownership, management and profits or losess and partnerships can take various forms, such as general partnership, limited parnerships, and limited liability partnerships.

However, it’s important to note that parnership also have potential drawbacks

1. Unlimited Liability: in a general partnership, all partners are personally liable for the partnership’s debts and obligations.
2. Potential Conflicts: Partnership can be susceptible to conflicts between parners, especially when there are disagreements over managements or decision making.
3. Limited Access to Capital: Partnerships may have difficulty raising large amounts of capital compared to companies.

Limited Liability Partnership (LLP)

In the ACRA article about understanding LLPs explain it Limited Liability Parnership (LLP) is a vehicle for doing business in Singapore. Means LLP is a business structure in Singapore that combines elements of a partnership and a company. and LLP offers partner limited liability while maintaning a parnership.

1. Limited Public Perception: LLP may not have the same public perception as companies, which can sometimes effect their ability to attract investors or business partner
2. Regulatory requirements: While LLP have simpler administrative requirements than companies, they still need comply with certain regulations and file annual returns

if you are considering to use LLP as your business structure in Singapore, it’s highly recommended to consult with a legal or accounting professional to understand the specific requirements and benefits for your business.

Private Limited Companies (PTE LTD)

PTE LTD or it’s call Private Limited Companies is a popular business structure in Singapore, mostly for SMEs in Singapore Small and medium-sized enterprises using in. This structure offers a higher level of legal and financial protection for the business owners, knows as shareholders. This structure also allows for easier fundraising through the sale of shares. The Private Limited Companies it can have maxium of 50 shareholders.

However, it’s important to note that PTE LTD also have somne drawbacks:

1. More Complex Setup: Setting up a PTE LTD is Generally more complex and time consuming than a sole proprietorship or partnership
2. Higher costs: there are associated costs involved in Incorporationg a pte Ltd, such as filing fees, legal fees, and ongoing compliance requirments
3. Regulatory Requirements: Pte Ltd are subject to more stringent regulations and reporting requirements comapred to sole proprietorship or partnership

Private Limited Companies in Singapore offer a robust and flexible business structure with numerous advatages, including limited liability, easier access to capital, tax benefits, perpetual succession and enhanced credibility. However, entreoreneurs should carefully weigh the advantages and disadvantages, considering the complexity of setup, administrastive requirements and potensial for less personal control, to determine if this structure aligns with their business goals and risk tolerance

If you want to know more about Private Limited Companies (PTE LTD) you can read this article: What is sole proprietorship and private limited company

Public Limited Company (PLC)

Public Limited Company (PLC) in Singapore is a type of company that can offer its shares to the public for sale. This is means that anyone can purchase shares in the company, making it a publicly trade entity. A standout feature of this type of company is its capacity to have more than 50 shareholders, enabling the general public to buy shares and become part-owners.

However, PLC also have some drawbacks:

1. Increased Regulatory requirements: PLC are subject to more stringent reguilations and reporting Requirments than prevately held companies.
2. Public scrutiny: PLC face increased scrutiny from shareholders, regulators and the public, which can put pressure on management to delivery results.
3. higher costs: There are higher costs associated with going public, including legal fees, accounting fees, and ongoing compliance requierments
4. Loss of Control: Publicly traded companies may experiance a dilution of ownership and control as new shareholders are brought in

Public Limited Companies in Singapore offer a robust and flexible business structure with numerous advantages, including access to capital, enhanced credibility, prepetual succession, shareholder flexibility and transparency. However, enterpreneurs should carefully weigh the advantages and disadvantages, considering the complexity of setup, andministrative requirements, and potential for less personal control, to determine if this structure aligns with their business goals and risk tolerance.

Company Registration for Local Singaporean

As we know Singapore is a one of the center global trade in ASIA and if you are estabilish your business in Singapore it’s not ony foreigners get benefit, it’s also as Singaporean get the benefit for incorporation. As a local esspecially Singaporean Citizen it’s not difficult to register your business in Singapore. Here are some steps you need to take to follow.

 Key Requirements for Local

1. Resident Director must a pointed as a director of the company
2. Address must be located at the Singaporea and not P.O Box
3. Every company must appoint a company secretary
4. Minimum paid up or share capital is 1$ for a company registration
5. Permits and licenses: depending on your business activities, you may need specific permits or licenses

How is process for Company registration as Local

1. Choose a company name
2. Appoint a Director
3. Registered office Address
4. Prepare the incorporation Documents
5. Submit the Documents
6. Pay the fees