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Types of Business Entities in Singapore: Which Should You Choose?

Understanding the different types of business entities in Singapore is the first step to setting your business up for success. Each structure—from sole proprietorships to private limited companies—comes with its own benefits and requirements. Choosing the right one ensures compliance, protects your interests, and supports long term growth.

Singapore offers multiple entity types. Use our comparison table below to explore your options and choose the structure that best fits your business strategy.

Business Structures in Singapore
Business TypeLegal StatusLiabilityTaxationSuitable For
Sole ProprietorshipNot a separate legal entityUnlimited personal liabilityPersonal income taxIndividuals, freelancers, small business owners
PartnershipNot a separate legal entityUnlimited, shared among partnersPersonal income taxTwo or more individuals starting a business together
Limited Partnership (LP)Not a separate legal entityGeneral partner: unlimited; Limited partner: limitedPersonal or corporate tax (depending on partner type)Investors and business managers
Limited Liability Partnership (LLP)Separate legal entityLimited; partners liable only for own actionsPersonal or corporate tax (depending on partner type)Professionals, consultants
Private Limited Company (Pte Ltd)Separate legal entityLimited to share capitalCorporate taxStartups, SMEs, scalable ventures
Company Limited by Guarantee (CLG)Separate legal entityLimited by guaranteeMay be tax-exempt if registered as charityNon-profits, charities, NGOs