Sole proprietorship and partnership

   A sole proprietorship or partnership must be registered with the Registrar of Businesses under the Business Registration Act. A partnership may consist of individuals or companies, whether Singapore residents or not. The number of partners must not exceed 20. This requirement does not apply to professions formed and regulated under Singapore law. Limited liability partnerships cannot be formed in Singapore.

Corporation

  The Companies Act recognises four main types of companies: 

• A company limited by shares; 
• A company limited by guarantee; 
• An unlimited company without share capital; and 
• An unlimited company with share capital. 

  Each of these types may be further split into private or public companies. A private company is one that restricts share transfers, limits membership to 50 and prohibits public invitation for subscription to its shares or debentures or for loan of money to it.
   A variation of the private company is the exempt private company, which is essentially a private company but is conferred privacy on its financial statements. Such a company does not have to file copies of its financial statements with the Registrar of Companies (ROC). A private company qualifies as an exempt private company if it has not more than 20 members and if no beneficial interest in its shares is held directly or indirectly by any corporation. Thus, a local subsidiary of a foreign corporation cannot be an exempt private company. Any company that is not a private company is a public company.
   A public listed company is essentially one whose shares are listed on the Stock Exchange of Singapore.
   For more detailed information on business registration procedures, check out the Registry of Businesses and Companies website.

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