Comparison Between Various Types of Business Entities

Sole Proprietorship Partnership Limited Liability Partnership (“LLP”) Limited Partnership (“LP”) Private Limited Company (“Co”)
Legal status No separate legal status.
Owner has unlimited liability.
No separate legal status.
Partners have unlimited liability.
Separate legal status from its partners. All partners have limited liability. No separate legal status. The limited partner has limited liability while the general partner has unlimited liability. Separate legal status from its member(s) and director(s). Members have limited liability.
Ownership Owned by a sole person. Owned by 2 to not more than 20 persons. Owned by 2 or more partners (no maximum limit). Owned by 2 or more persons (no maximum limit). Owned by minimum 1 member (individual or corporation)
Registration Criteria Singapore citizen / Singapore PR / EntrePass holder, who is at least 18 years old.

A foreign owner must appoint an authorised representative who is ordinarily resident in Singapore.
Singapore citizen / Singapore PR / EntrePass holder, who is at least 18 years old.

Foreign partners must appoint an authorised representative who is ordinarily resident in Singapore.
At least 2 individual partners of at least 18 years old or 2 body corporate (company or LLP).

Have at least 1 manager who is an ordinarily resident in Singapore, above age of 18.
At least 2 individual partners above 18 years old or 2 body corporate (company or LLP). Must have at least 1 general partner and 1 limited partner.

If all general partners are foreigners, they must appoint 1 ordinarily resident manager, above age of 18.
At least 1 ordinarily resident director, above age of 18 and at least 1 shareholder (individual or corporate body).

A foreigner needs to apply for a work pass from the Ministry of Manpower if he wishes to act as a local director.
Taxation Profits are taxed at owner’s personal income tax rates. Profits are taxed at partners’ personal income tax rates. Profits are taxed at corporate tax rates. Profits are taxed at owner’s personal income tax rates. Profits are taxed at corporate tax rates.
Business continuity Business shall remain in existence as long as the owner is alive and wishes to continue business. Partnership shall exist in accordance with the terms of the partnership agreement. LLP has perpetual succession unless wound up or struck off. LP shall exist in accordance with the terms of the partnership agreement. A Co has perpetual succession unless wound up or struck off.
Closure of business The owner can lodge a notice of cessation of business with ACRA. The partners can lodge a notice of cessation of business with ACRA. Can either (i) strike off a LLP or (ii) wind up a LLP by the partners, creditors or compulsory winding up by the High Court. The general partners can lodge a notice of cessation of business of the LP with ACRA. The members or creditors can wind up a Co voluntarily or apply to the High Court for a compulsory winding up.