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Business Entities


Business Entities | Bestar
Business Entities | Bestar

Business Entities


There are four main types of business entities in Singapore:

  • Sole proprietorship: A sole proprietorship is a business owned by one person. It is the simplest and most common form of business entity in Singapore. Sole proprietors have unlimited liability, which means that they are personally responsible for all of the business's debts and liabilities.

  • Partnership: A partnership is a business owned by two or more people. Partners share the profits and losses of the business, and they also share joint and several liability, which means that each partner is personally responsible for all of the business's debts and liabilities.

  • Limited partnership (LP): An LP is a type of partnership in which there are two types of partners: general partners and limited partners. General partners have unlimited liability, while limited partners have limited liability, up to the amount of their investment in the partnership.

  • Limited liability partnership (LLP): An LLP is a type of business entity that combines the features of a partnership and a company. LLPs have separate legal personality from their partners, and partners have limited liability.

Companies: A company is a separate legal entity from its owners. This means that the company's debts and liabilities are limited to the assets of the company. Company owners are known as shareholders, and they have limited liability, up to the amount of their investment in the company.


Which business entity is right for you?


The best business entity for you will depend on your individual circumstances and business goals. Here are some factors to consider when choosing a business entity:

  • Liability: How much personal liability are you willing to assume? Sole proprietors and general partners have unlimited liability, while limited partners and shareholders have limited liability.

  • Separate legal personality: Do you want your business to have a separate legal personality from you? If so, you will need to choose a company or LLP structure.

  • Ownership and management: How many people will own and manage your business? A sole proprietorship is the simplest option for a business with one owner, while a partnership or LLP may be better suited for a business with multiple owners.

  • Compliance requirements: Different business entities have different compliance requirements. For example, companies are required to file annual returns and hold annual general meetings.

If you are unsure which business entity is right for you, you should consult with Bestar.


How to register a business entity in Singapore


The process for registering a business entity in Singapore varies depending on the type of entity. However, the general steps are as follows:

  1. Choose a business name and check if it is available.

  2. Reserve your business name.

  3. Complete the necessary registration forms and submit them to the Accounting and Corporate Regulatory Authority (ACRA).

  4. Pay the registration fees.

  5. Once your registration is approved, you will receive a Unique Entity Number (UEN) and a Certificate of Incorporation (for companies).

You can find more information on how to register a business entity in Singapore on the ACRA website.


If you are unsure which business entity is right for you, you should consult with Bestar accountant


Bestar is a reputable accounting firm in Singapore with a team of experienced accountants who can help you choose the right business entity for your needs. We can also advise you on the registration process and help you comply with all of the relevant regulations.


Here are some of the benefits of consulting with Bestar to choose the right business entity for you:

  • We can help you understand the different types of business entities available in Singapore and the pros and cons of each one.

  • We can assess your individual circumstances and business goals to recommend the best business entity for you.

  • We can provide you with advice on the registration process and help you comply with all of the relevant regulations.

  • We can also help you with other accounting and tax matters related to your business.

If you are serious about starting a business in Singapore, consult Bestar. We can help you choose the right business entity for your needs and set you up for success.


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