TYPE OF BUSINESS VEHICLE

March 29th, 2021

Keen to join Singapore Entrepreneurship ? here is the list of business vehicle option .

OPTION 1 : PTE LTD

According to the ACRA records, Pte Ltd is the top choice for public among others option .

• carry separate legal entity concept which means that it can stand alone and separate from its director and shareholder
• It have capacity to enter into contract, acquire asset and sue or been sue under its own name
• Ease of Ownership transfer via share transfer. You are allowed to transfer your shares without operation disruption ( depend on your agreement with the company )
• Ease of share transfer help company continue to exist even in the event of death, change in director or shareholder .

OPTION 2 : SOLE PROPRIETOR

Sole proprietor is easy to setup compare with Pte Ltd . As it doesnot required director and shareholder role , less compliance regulation .

• is risk type of option because is not a separate legal company therefor its owner will personal responsible for any debt of the company . Owner Personal asset is NOT protected
• it will cease operation if owner cease operate of in the event of death
• Will be tax at personal tax level

OPTION 3 : PARTNERSHIP

Partnership refer to 2 or more people agreed to establish and co own a business .

• NOT separate legal entity so all partner asset is NOT protected
• It cease exist in the event of death partner
• disatisfied among partner will casue dissoluiton of the partnership

There is 3 type of partnership

1. General Partnership
2. Limited Partnership
3. Limited Liabilities Partnership

HOW TO DECIDE ?

Key consideration :

If you are local and intent to start small business then Sole Proprietorship is your preference .

If involved with different people carry different role in company, then you may consider Partnership. But please take note of its Perpetual succession.

Lastly, Pte Ltd still great choice among all with the separate legal entity concept . The only drawback is needed of compliance regulation.