Types of Singapore Companies

Type of business organization

Sole Proprietorship

A sole-proprietorship is an ideal for Small Businesses.

It also known as the sole trader or a “one-man show” according to laymen, is a type of business entity that is owned and run by an individual.


A partnership is a business owned by at least 2 partners. The partner can be an individual, a company or a limited liability partnership. The maximum number of partners in a general partnership is 20.

Local Companies, it is the most common type of company in Singapore

A local company is the most favoured business structure for Singapore business formation and suitable for foreign investor to setup in Singapore.

  • It is a separate legal entity from the business owners
  • The company can buy property in its own name.
  • Since the company is a separate legal entity from the business owners, which will keeps the shareholders out of the courts of law.
  • The shareholders are not responsible for the loss or debt incurred by the company.
  • It allows 100% foreign ownership.


A Singapore local company is considered as tax resident. It gets access to all tax benefits and incentives schemes for the local entities which go along in reducing its operating costs and tax payable.

Foreign Company as a Branch in Singapore

Foreign company is a company, society, corporation, association, or any other body formed outside Singapore. Under the foreign law, which allows the company to be incorporated, it is not separate entity and the company will be able to hold property.

The last type of company will be Non-Trading Representative Office

This is a form of foreign ad-hoc company which only operates for a short term, for example like one to two years. It is usually to start exploring business ventures, market surveys, or trade leads in Singapore. The goal is always to test the waters before establishing the company.

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