Ultimate Guide To The Types Of Companies In Singapore

Choosing the appropriate business structure is one of the most important decisions before establishing operations in Singapore. The structure affects the owners’ personal liability, how the business is governed, the applicable registration and compliance requirements, continuity of the business and how investors may participate. 

This guide distinguishes between types of companies in Singapore and other recognised business structures, helping business owners and foreign investors understand the main differences before deciding how to establish their operations. 

What Are the Types of Companies in Singapore? 

Singapore companies are legal entities registered under the Companies Act 1967. ACRA currently recognises seven local company types: four private company types and three public company types. These are different from business structures such as sole proprietorships, general partnerships, limited partnerships and limited liability partnerships, which have different legal characteristics and liability rules. 

The seven local company types identified by ACRA are: 

1. Exempt private company limited by shares 
2. Private company limited by shares 
3. Unlimited private company 
4. Unlimited exempt private company 
5. Public company limited by shares 
6. Public company limited by guarantee 
7. Unlimited public company 

Exempt private companies and private companies limited by shares are among the more common choices for privately owned businesses. 

Common Types of Companies in Singapore

Entrepreneurs should not use “company” and “business structure” interchangeably. ACRA’s current comparison framework covers five principal structures for general business formation: 

• Sole proprietorship 
• Partnership 
• Limited partnership 
• Limited liability partnership 
• Company 

Each structure provides a different balance of liability protection, continuity, administration and potential for growth. 

Sole Proprietorship

A sole proprietorship is the simplest business structure and has one owner. ACRA permits the owner to be an individual, a company or an LLP. 

A sole proprietorship is not a separate legal entity from its owner. The owner therefore has unlimited liability for the business’s debts and losses. Property is owned, and legal proceedings are generally undertaken, in the owner’s name rather than through a separate corporate personality. 

A sole proprietorship may be appropriate for a relatively straightforward owner-operated business, but the absence of a legal separation between the business and owner should be considered carefully where the business involves significant financial or operational risk. 

Partnership

A general partnership consists of between two and 20 owners, although qualifying professional partnerships may have more than 20 partners. 

Partners may include individuals, companies and LLPs. Like a sole proprietorship, a general partnership is not a separate legal entity from its partners. The partners have unlimited liability and can be personally responsible for partnership debts, including liabilities arising from the actions of other partners. 

Limited Partnership 

A limited partnership, or LP, must have at least one general partner and at least one limited partner. 

The general partner manages the LP and has unlimited liability for its obligations. A limited partner’s liability is generally restricted according to the limited-partnership structure, provided that the limited partner does not take part in management in a manner that causes the applicable protection to be lost. 

An LP is not the same as an LLP. The distinction is especially important for businesses seeking outside investors while retaining a general partner responsible for management. 

Limited Liability Partnership 

A limited liability partnership, or LLP, combines features of a partnership with separate legal personality. 

An LLP is a legal entity distinct from its partners. It can own property, enter into contracts and sue or be sued in its own name. Partners are generally protected from personal liability for the LLP’s debts and obligations, although a partner may remain responsible for liabilities arising from that partner’s own wrongful acts or omissions. 

An LLP must have at least two partners and has perpetual succession until it is wound up or struck off. 

Private Limited Company

A private company limited by shares is one of the principal company structures used for commercial businesses in Singapore. It is commonly identified by “Private Limited” or “Pte. Ltd.” in its name. 

A private company limited by shares is a separate legal entity from its shareholders and directors. It may own assets, enter contracts, incur liabilities and commence or defend legal proceedings in its own name. 

Under ACRA’s current classification, a private company limited by shares can have up to 50 shareholders, who may be individuals or corporate entities. 

The company continues to exist despite changes in directors or shareholders, subject to the Companies Act and the company’s constitution. 

Types of Private and Public Companies in Singapore 

The term “private limited company” represents only part of Singapore’s company framework. The seven company types can be grouped broadly as follows. 

Private Companies 

ACRA lists four private company types: 

• Exempt private company limited by shares — generally suitable for smaller privately owned businesses and startups; it may have up to 20 individual shareholders. 
• Private company limited by shares — may have up to 50 individual and/or corporate shareholders. 
• Unlimited private company — a private company where shareholder liability is not limited in the same way as a company limited by shares.
• Unlimited exempt private company — an exempt private company organised on an unlimited-liability basis. 

Public Companies  

ACRA lists three public company types: 

• Public company limited by shares — can have an unlimited number of individual or corporate shareholders and may access public investment markets, subject to applicable securities requirements. 
• Public company limited by guarantee — has members rather than shareholders and no share capital; this structure is commonly associated with non-profit or public-interest organisations. 
• Unlimited public company — a public company organised with unlimited member liability. 

A public company limited by shares intending to offer shares to the public is subject to additional securities and prospectus requirements. 

Structure	Separate Legal Entity?	Owners / Members	General Liability Position	Typical Use
Sole proprietorship	No	1 owner	Owner has unlimited liability	Small owner-operated business
General partnership	No	2–20 partners, subject to exceptions	Partners have unlimited liability	Business operated jointly by partners
Limited partnership	No	At least 1 general and 1 limited partner	General partner has unlimited liability; limited partner receives limited-liability treatment subject to applicable rules	Investment or partnership arrangements
LLP	Yes	At least 2 partners	Partners generally protected from LLP debts, subject to liability for their own wrongful acts	Professional or partnership-based businesses
Private company limited by shares	Yes	Up to 50 shareholders	Shareholders’ exposure is generally limited to their investment/amount unpaid on shares	Startups, SMEs and growing commercial businesses
Public company limited by shares	Yes	No maximum shareholder limit	Limited liability	Larger companies seeking access to public capital
Public company limited by guarantee	Yes	Members rather than shareholders	Limited to the guarantee undertaken by members	Charities and non-profit/public-interest organisations

STATISTIC: 

As of August 2026, ACRA reported 636,822 registered business entities in Singapore. During August 2026 alone, ACRA recorded 7,243 business entity formations and 4,595 cessations. ACRA publishes these national business-registry statistics monthly. 

STATISTIC-SOURCE: ACRA Business Registry Statistics 

Types of Business Presence in Singapore for Foreign Businesses

A foreign business does not need to limit its assessment to a subsidiary, representative office or branch. ACRA’s current guidance identifies four principal ways for an existing foreign business to establish a presence in Singapore: 

1. Set up a representative office. 
2. Register a subsidiary or other local company. 
3. Register a foreign company branch. 
4. Transfer the company’s registration to Singapore through re-domiciliation, where the applicable requirements are satisfied. 

ACRA also notes that foreign businesses may explore other structures such as LPs and LLPs. All foreign businesses registering in Singapore must engage a registered corporate service provider for the registration process. 

Subsidiary

A Singapore subsidiary is generally incorporated as a Singapore company owned wholly or partly by a foreign parent. 

Unlike a branch, the subsidiary has its own separate legal identity. The parent company’s liability is therefore generally separated from the subsidiary’s obligations, subject to applicable law and circumstances. 

A subsidiary registered as a Singapore local company must comply with the same core requirements that apply to the relevant local company type. 

Representative Office

A Representative Office (RO) is intended for qualifying foreign entities that want to assess business opportunities in Singapore before committing to a permanent commercial presence. 

An RO is temporary, has no separate legal personality and cannot generate income. Enterprise Singapore states that an approved RO for a foreign commercial entity initially operates for one year. Extensions may be granted on a case-by-case basis, subject to a maximum period of three years. 

Foreign commercial entities applying under Enterprise Singapore’s RO scheme currently need to satisfy criteria including: 

• Foreign entity sales turnover above US$250,000. 
• At least three years of establishment. 
• Fewer than five proposed RO staff. 

ROs that intend to remain in Singapore after the permitted period should establish an appropriate registered presence with ACRA. 

Branch

A Singapore branch is an extension of its foreign parent company rather than a separate legal entity. 

A foreign company registering a branch must appoint at least one authorised representative who satisfies Singapore’s local residency requirements. The branch also requires a Singapore registered office and must comply with relevant Companies Act 1967 statutory and disclosure obligations. 

Foreign companies are subject to annual filing and financial-statement requirements with ACRA, although the precise documents required can depend on the company’s circumstances and applicable exemptions or filing rules. ACRA’s current foreign-company filing guidance should therefore be checked rather than assuming that one identical set of audited documents applies to every foreign company. 

Transfer of Registration — Re-domiciliation 

A qualifying foreign company may also consider transferring its registration to Singapore. 

Unlike establishing a branch, re-domiciliation moves the company’s legal home to Singapore. After successful transfer, the company becomes a Singapore company and must comply with the requirements applicable to Singapore companies. 

This option may be relevant where a foreign group intends to move the legal domicile of an existing company rather than establish an additional subsidiary or branch. 

6 Factors to Consider when Choosing a Company Structure for your Business

The appropriate structure depends on more than initial incorporation convenience. Business owners should consider ownership, liability, regulatory obligations, fundraising, continuity, taxation and long-term plans. 

1. Capital and Funding Requirements

Businesses should consider both the amount of initial capital required and how future funding will be raised. 

A sole proprietorship or partnership may suit a simpler owner-funded operation, while a company structure may provide greater flexibility where the business expects to bring in additional shareholders or outside investors. 

The statutory ACRA registration fee for a Singapore company is currently S$300, in addition to the S$15 name application fee. By comparison, registration of a sole proprietorship or partnership currently costs S$100, plus the S$15 name application fee. 

2. Number and Type of Owners

The intended ownership structure is critical. 

For example: 

• A sole proprietorship has one owner. 
• A general partnership normally has two to 20 owners, subject to the professional-partnership exception. 
• An LLP requires at least two partners. 
• An exempt private company generally has no more than 20 individual shareholders. 
• A private company limited by shares can have up to 50 individual or corporate shareholders. 
• A public company limited by shares has no equivalent maximum shareholder limit. 

3. Liability and Responsibility

A major distinction is whether the business has a legal identity separate from its owners. 

Sole proprietors and general partners may be personally responsible for business liabilities. In contrast, an LLP or company generally provides a separate legal entity, although the extent of protection and individual responsibility depends on the structure and circumstances. 

4. Business Risk

Businesses operating in industries involving substantial contractual, financing, employment or operational risk should assess carefully whether unlimited personal liability is commercially appropriate. 

Limited liability is one reason many growing businesses consider a company or LLP structure, although limited liability does not eliminate personal responsibility for fraud, wrongful conduct, personal guarantees or other circumstances where personal liability may independently arise. 

5. Compliance, Advantages and Disadvantages 

Each structure involves different ongoing obligations. 

For example, a company has more formal corporate governance and filing requirements than a sole proprietorship. Every company must have at least one director and a company secretary, with the secretary appointed within six months after registration. At least one director must satisfy Singapore’s local residency requirements. 

Business owners should therefore assess whether the additional governance obligations are justified by the benefits of separate legal personality, limited liability, continuity and fundraising flexibility. 

6. Continuity and Ease of Closure

A sole proprietorship generally continues while its owner remains alive and chooses to continue the business. Companies and LLPs, by contrast, have separate legal existence and perpetual succession until they are formally closed, wound up or struck off. 

This can make companies and LLPs more suitable where long-term continuity, succession or changes in ownership are important. 

Why a Private Limited Company Is Commonly Considered for Commercial Businesses 

For many startups, SMEs, foreign investors and growing commercial enterprises, a private company limited by shares is an important structure to consider. However, it should not be described as automatically “the best” structure for every business because suitability depends on the owners’ circumstances and objectives. 

Its main characteristics include the following. 

Limited Liability

Shareholders generally have limited liability based on the amount invested or remaining unpaid on their shares. This separates normal corporate liabilities from shareholders’ personal assets, subject to applicable exceptions. 

Separate Legal Entity 

A private limited company has a legal identity separate from its directors and shareholders. It can own assets, enter contracts, borrow money and commence or defend legal proceedings in its own name. 

Continuity 

Changes in directors or shareholders do not normally terminate the company’s legal existence. This supports succession, investment and long-term business planning. 

Ability to Raise Capital 

A private company can generally raise equity capital by issuing shares, subject to the Companies Act, its constitution, existing shareholder rights and other applicable requirements. 

This can provide greater flexibility than an owner-only business structure where external investment is expected. 

Corporate Tax Treatment 

Singapore’s prevailing corporate income tax rate is 17% of chargeable income, applicable to both local and foreign companies. The headline rate should not be confused with the company’s final effective tax burden because exemptions, rebates and other tax provisions may apply depending on the relevant Year of Assessment and the company’s circumstances. 

For example, IRAS has announced a 50% Corporate Income Tax Rebate for YA 2026, subject to the applicable rules and limits. Tax incentives and exemptions should always be checked against the relevant Year of Assessment rather than assumed to apply indefinitely. 

Basic Requirements for a Singapore Local Company

Although exact requirements vary according to company type, a Singapore company generally needs to address several core incorporation and governance matters. 

These include: 

• At least one shareholder. 
• At least one director. 
• At least one director who satisfies Singapore’s local residency requirements. 
• A company secretary, who must be appointed within six months after registration. 
• A registered office in Singapore. 
• A company constitution. 
• Appropriate share-capital information where the chosen company type has share capital. 
• Ongoing statutory filings and maintenance of required company records and registers. 

The registered office must be a Singapore address and meet ACRA’s accessibility requirements. A company’s constitution governs matters including the rights and responsibilities of shareholders, directors and the company secretary. 

Does an Exempt Private Company Automatically Mean “Audit Exempt”? 

No. The concepts should not be treated as interchangeable. 

An exempt private company (EPC) is a company type based primarily on its ownership characteristics. Audit exemption, however, is determined under the separate small-company criteria. 

ACRA currently states that a private company generally qualifies for the small-company audit exemption when it meets at least two of the following three thresholds for the immediate past two consecutive financial years: 

• Annual revenue of S$10 million or less. 
• Total assets of S$10 million or less. 
• 50 employees or fewer. 

Additional rules apply, including those for companies belonging to groups. Accordingly, being an EPC does not by itself establish that a company is audit exempt. 

How We Can help – Our Incorporation Service

Incorporating a company in Singapore can be complex, especially for first-time business owners and foreign investors who need to determine the appropriate structure before registration. 

At Premia TNC, we provide company incorporation support in Singapore. Our professionals can assist with the incorporation process, required documentation and ongoing corporate administration. 

We can also help business owners assess the practical differences between Singapore company structures based on intended ownership, business activities, expansion plans and ongoing compliance requirements. 

Contact Premia TNC to learn more about establishing and maintaining your Singapore business. 

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