Step 2: Choosing a business structure

Owned by

An individual, a company or an LLP.

Legal status

A sole proprietorship is not a separate legal entity from the owner.

You can sue, be sued, and own property in your own name.

Liability

You have unlimited liability. This means you are personally responsible for all business debts and losses.

Registration requirements (locals)

Locals must meet these requirements:

• Age: 18 years or above.

• Residency requirement: Singapore citizen, Singapore permanent resident, or an eligible FIN holder. FIN holders must confirm with their pass issuer (such as *MOM or *ICA) that they can register a business.

• Bankruptcy requirement: Cannot be an undischarged bankrupt (unless approved by the High Court or Official Assignee).

• Medisave requirements: Self-employed persons must be up-to-date with their Medisave contributions before they reserve a business name or become a new owner of an existing business. This means you have either paid in full or have an active GIRO arrangement with CPF Board.

Tip: You can check your Medisave status or make payment arrangements through CPF's self-employment dashboard.

Registration requirements (foreigners)

Foreigners who live overseas must meet these requirements:

• Age: 18 years or above

• Engage a corporate service provider to register on their behalf

• Appoint at least one authorised representative, who meets the local residency requirements

If you plan to move to Singapore to run your sole proprietorship, you must seek approval from the MOM.

Post-registration and ongoing requirements

Key requirements include:

• Topping up your Medisave account before you can renew

• Renewing your business registration every one or three years

Note: If you have late Medisave payments, your business registration may be cancelled early.

Set-up fee

The fee depends on your registration period:

• One-year registration: $115 ($15 name application fee and $100 registration fee)

• Three-year registration: $175 ($15 name application fee and $160 registration fee)

Taxes

Profits are taxed at your personal income tax rates.

Continuity

Your business will continue as long as you are alive and choose to continue it.

Closing down

You can close your sole proprietorship by formally ceasing operations.

ACRA may cancel the registration if:

• It is not renewed

• The business is no longer running

Owned by

Two to 20 owners, who can be individuals, companies, or LLPs.

Professional partnerships can have more than 20 owners. These are partnerships formed by licensed professionals like lawyers, engineers and architects.

Legal status

A partnership is not a separate legal entity from its partners.

Owners cannot sue, be sued, and own property in their name.

Liability

All owners have unlimited liability. This means they are personally responsible for the partnership's debts, including those caused by other owners.

Registration requirements (locals)

Locals must meet these requirements:

• Age: 18 years or above.

• Residency requirement: Singapore citizen, Singapore permanent resident, or an eligible FIN holder. FIN holders must confirm with their pass issuer (such as *MOM or *ICA) that they can register a business.

• Bankruptcy requirement: Cannot be an undischarged bankrupt (unless approved by the High Court or Official Assignee).

• Medisave requirements: Self-employed persons must be up-to-date with their Medisave contributions before they reserve a business name or become a new owner of an existing business. This means you have either paid in full or have an active GIRO arrangement with CPF Board.

Tip: You can check your Medisave status or make payment arrangements through CPF's self-employment dashboard.

Registration requirements (foreigners)

Foreigners who live overseas must meet these requirements:

• Age: 18 years or above

• Engage a corporate service provider to register on their behalf

• Appoint at least one authorised representative, who meets the local residency requirements

If you plan to move to Singapore to run your partnership, you must seek approval from the MOM.

Post-registration and ongoing requirements

Key requirements include:

• Topping up Medisave accounts of self-employed owners before registration or renewal

• Renewing your business registration every one or three years

Note: If you or your owners have late Medisave payments, your business registration may be cancelled early.

Set-up fee

The fee depends on your registration period:

• One-year registration: $115 ($15 name application fee and $100 registration fee)

• Three-year registration: $175 ($15 name application fee and $160 registration fee)

Taxes

Profits are taxed at the owners' personal or corporate tax rates.

Continuity

The business will continue as long as the owners:

• Agree to keep the partnership

• Renew its registration

Closing down

Owners can close a partnership themselves.

ACRA may cancel the business registration if:

• It is not renewed

• The business is no longer running

Owned by

Two or more partners who can be individuals, companies or LLPs.

There is no maximum number of partners.

Legal status

An LP is not a separate legal entity from its partners.

It cannot sue, be sued, or own property in its name.

General partner requirements

Every LP must have at least one general partner:

• Has unlimited liability and is personally responsible for all business debts

• Only general partners can run the business

• (Individuals) Must be at least 18 years old

Limited partner requirements

Every LP must have at least one limited partner.

The limited partner:

• Has limited liability, which is capped at the amount they agreed to contribute

• Cannot manage the LP or they will be treated as a general partner

• (Individuals) Must be at least 18 years old

Local manager requirements

You must to appoint a local manager if all of the general partners are foreigners:

• Age: 18 years or above.

• Liability: If the LP does not meet its key requirements, the local manager can be held personally responsible. This means they may be personally responsible for business debts, just like a general partner would be.

• Residency requirement: Singapore citizen, Singapore permanent resident, or an eligible FIN holder. FIN holders must confirm with their pass issuer (such as *MOM or *ICA) that they can register a business.

• Bankruptcy requirements: Cannot be an undischarged bankrupt (unless approved by the High Court or Official Assignee).

• Medisave requirements: Self-employed persons must be up-to-date with their Medisave contributions before they reserve a business name or become a new partner of an existing business. This means you have either paid in full or have an active GIRO arrangement with CPF Board.

Tip: You can check your Medisave status or make payment arrangements through CPF's self-employment dashboard.

Post-registration guide and ongoing requirements

Key requirements include:

• Topping up Medisave accounts of self-employed partners before registration or renewal.

• Renewing your business registration every one or three years.

Note: If you or your partners have late Medisave payments, your business registration may be cancelled early.

Taxes

Profits are taxed at the partners' personal or corporate tax rates.

Continuity

An LP must always have at least one limited partner. If there are no limited partners:

• ACRA will suspend the LP registration

• The general partner will be automatically registered as a sole proprietorship instead

If you register a new limited partner, your LP registration will activate again.

Closing down

The business is closed by the general partner. The registration can also be cancelled if it is not renewed.

Owned by

Two or more partners who can be an individual, local company, foreign company or another LLPs.

There is no maximum number of partners.

Legal status

An LLP is a separate legal entity from its partners.

It can sue and be sued, buy and own property, have a common seal, and perform other legal acts that companies can perform.

Liability

Partners have limited liability. You are not personally responsible for debts caused by other partners.

However, you are liable for debts from your own wrongful actions.

Partner requirements

Individuals must be at least 18 years old.

Foreigners who live overseas must meet these requirements:

• Age: 18 years of above

• Engage a corporate service provider to register on their behalf

• Appoint at least one local manager, who meets the local residency requirements

If you plan to move to Singapore to run your LLP, you must seek approval from the *MOM.

Local manager requirements

Every LLP must have at least one manager.

The manager:

• Helps to run the business

• Must be at least 18 years old

• Must meet local residency requirements

• Cannot be an undischarged bankrupt (unless approved by the High Court or Official Assignee)

Post-registration and ongoing requirements

Key requirements include:

• Setting up and maintaining a Register of Registrable Controllers (unless exempt)

• Maintaining accounting records, profit and loss accounts and balance sheets

• Filing annual declarations

Taxes

Profits are taxed at the partners' personal or corporate tax rates.

Continuity

An LLP will continue to exist until it is formally closed down (wound up) or struck off the register.

Closing down

The LLP must be formally wound up or struck off.

Owned by

Shareholders own the company through their shares. All companies must have at least one shareholder.

The maximum number of shareholders depends on the company type:

• Exempt private company: 20 or less

• Private company: 50 or less

• Public company: More than 50

More details: Deciding on share capital and share types

Company director requirements

All companies must have at least one director. Directors manage the company but do not always own shares.

More details: Choosing company directors and other key officers

Legal status

A company is a separate legal entity. It can sue, be sued, and own property in the company's name.

Liability

Shareholders have limited liability. This means they are not personally responsible for the company's debts and losses.

Post-registration and ongoing requirements

Key requirements include:

• Appointing a company secretary and auditor (unless exempt)

• Setting up and maintaining business registers (unless exempt)

• Holding annual general meetings (AGM)

• Filing annual returns

Set-up fee

$315 ($15 name application fee and $300 incorporation fee).

Taxes

Profits are taxed at corporate tax rates.

Business continuity

A company will exist until it is formally wound up or struck off.

Closing down

The company must be formally wound up or struck off the register.