Unsure which entity would be most suitable for your newly incorporated company? There are many definitions to the different entity types on Bizfile and sometimes it can get pretty confusing. Here are the 5 different entity types from Bizfile summarized with their respective definitions.
Local Company (Private Limited)
A company is a business entity incorporated in Singapore. A company has rights to own properties, has perpetual succession and can sue or be sued in its own name. Companies have different setups and are distinguished by the company type e.g. private company, exempt private company, public company limited by shares and public company limited by guarantee.
Business
A business is an unincorporated entity which may be a sole-proprietorship or a general partnership. Individuals and companies, being “legal identities”, may set up and own a sole-proprietorship or partnership.
Limited Partnership
A Limited Partnership (LP) is a partnership consisting of a minimum of two partners, with at least one general partner and at least one limited partner. An LP does not have a separate legal entity from the partners, i.e. it cannot sue or be sued or own property in its own name. A general partner is responsible for the actions of an LP and liable for all debts and obligations of the LP. A limited partner is not liable for debts and obligations of the LP beyond his agreed contribution, provided he does not take part in the management of the LP.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business vehicle that gives owners the flexibility of operating as a partnership while having a separate legal identity like a private limited company. The LLP has perpetual succession, which means any change in the partners of an LLP will not affect its existence, rights or liabilities.
Foreign Company
A foreign company is a company, corporation, association or other body incorporated outside Singapore. A foreign company may carry on business in Singapore by incorporating a local company or registering as a foreign branch under the Companies Act. The foreign company is required to have a registered name, at least 1 local agent and a registered office in Singapore.
Still unsure which one is for you? Have a chat with us and we will guide you along.
Team ASL
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