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There are several different ways in which companies could get registered in Singapore. They include:

  • Individual entrepreneurship.
  • Copartnership.
  • Company.
  • LPs.
  • LLPs.
  • Trusts.

Pros & Cons of Registering Sole Proprietorships in Singapore

The pros include:

  1. Very few formal & legal requirements
  2. Very few regulations governing management
  3. Simple liquidation

The cons include:

  1. Owners bear personal liability for their business’ debts
  2.  Companies stop operating if their owners pass away or go bankrupt

Registering Partnerships in Singapore

The pros include:

  • Very few formal & legal requirements
  • Very few regulations governing management
  • Transparency of taxation
  • Simple liquidation

The cons include:

  •  Partners are deemed agents
  • Partners bear no personal liability for their business’ debts
  •  The number of partners may not exceed twenty
  • Passing away or bankruptcy of any of partners leads to the dissolution of partnership

Registering Companies in Singapore

The pros include:

  1.  Companies’ members bear no personal liability for their businesses’ debts
  2.  Companies do not depend on their participants’ going bankrupt or passing away
  3.  Companies can have any number of owners

The cons of registering companies in the state of Singapore include:

  • The necessity to comply with some regulations & requirements.
  • Companies’ management is administratively regulated
  •  For companies to be liquidated their owners must comply with numerous requirements

Registering LPs in the State of Singapore

The pros of registering LPs in the state of Singapore include:

  • Very few formal & legal requirements 
  • Very few regulations governing management
  • Transparency of taxation
  • Partners do not bear personal liability for their business’ debts
  • Passing away or bankruptcy of partners does not lead to the dissolution of partnership
  •  Streamlined procedure for liquidation

The cons include:

  • Partners with the ‘general’ status do not bear personal liability for their business’ debts
  • Partners with the ‘limited’ status are not allowed to manage partnerships if they wish to keep using their status
  • Limited number of partners  - only 20

Registering LLPs in Singapore

The pros include:

  1.  Very few formal & legal requirements.
  2.  Very few regulations governing management
  3.  Transparency of taxation
  4.  Partners do not bear personal liability for their business’ debts
  5.  Passing away or bankruptcy of partners does not lead to dissolution of partnership
  6.  Number of partners is unlimited
  7.  Streamlined procedure for liquidation

The cons include:

  1. Partners are deemed LLP agents
  2. Requirement to submit a solvency declaration on an annual basis
  3. Multiple requirements must be met for having LLPs liquidated

Registering Trusts in the State of Singapore

The pros of registering trusts in the state of Singapore include:

  •  Trusts’ owners bear no personal liability for their business’ debts plus their liability is proportionate to their monetary contribution to the entity.
  •  Passing away or bankruptcy of a trust’s managers does not lead to the dissolution of a trust
  •  Number of partners is unlimited

The cons include:

  • Compliance with some regulations & requirements
  • Management of trusts gets tightly regulated
  • Multiple requirements must be met for having trusts liquidated.

Having Foreign Companies Registered in Singapore

Registering a foreign company in Singapore requires their owners to abide by the following requirements:

  •  Registering a representative office in Singapore with IESCl
  •  Registering a subsidiary in Singapore as per the CA
  •  Acquiring/registration of an LLC based in Singapore
  •  Submitting financial reports to ACRA

Appointing independent contractors, such as marketing agents & distributors, does not qualify as conducting business in the state of Singapore. 

If a foreign company intends to engage in business activities in the state of Singapore, it must register a subsidiary in Singapore & obtain a license in the state of Singapore.

Taxation in Singapore

The below list consists of the major taxes entrepreneurs in the state of Singapore have to pay:

  •  Pay-as-you-earn tax. This kind of tax is levied territorially (i.e. on proceeds gained inside & outside of Singapore). 
  •  GST. This kind of tax is imposed on imported goods, including all goods & services delivered in the state of Singapore
  •  Real estate tax. This kind of tax is levied on the owners of land & real estate.
  •  Stamp duty. This kind of tax is levied on documentation related to the leasing, transfering or mortgaging of real estate
  • Customs duties and excise taxes. This kind of tax is levied on producers of oil, tobacco & alcohol products
  •  Tax on non-domestic workers. This kind of tax is imposed on non-domestic workforce in the state of Singapore.

Looking for legal advice on incorporating a company in the state of Singapore? IQ Decision UK is the answer.