What are different business entities?
Entrepreneurship entails many factors and preparations before one could really start. First off is to muster bravery, passion, ideas, and the plans to execute it.
When one has the determination and all factors made ready then the time is nigh to embark unto the long arduous journey towards the road of SUCCESS!
However, before venturing into Business world in the day of modern times, there are some foundations that need to be laid; else there shall be no access to the gatekeeper before the road. We shall start off with a few business entities.
Sole proprietor
It is a business type that only allows one natural person of Singapore Citizen, Singapore Permanent Resident or Entrepass holder and of 18 years and above to register. Please note that a sole proprietor is not a separate legal entity from the business owner.
What is required is the photocopy of the front and back of IC.
Partnership
As the title suggests it is a partnership of at least 2 people to a maximum of 20 partners. There is an exception that applies only to professional partnerships such as lawyers which can have more than 20 partners.
Partnership is not a separate legal entity from the business owner. Hence, individual partners are personally liable for all the debts and losses of the partnerships. The company be sued or sue in the partners’ names. One point to note however, One of the partners has to be Singapore Citizen, Singapore Permanent Resident or Entrepass holder and of 18 years and above in order for the partnership to proceed.
What is required is the photocopy of the front and back of IC for local residents.
Foreigners will need photocopy of the front and back of IC, Passport, proof of residency of at least 3 months and have all the documents translated if not in English and notarized.
Limited Liability Partnership
It is similar to Partnership only that you will not be sharing the losses together, in other words it is a separate legal entity. Which also means that the partner themselves will not be responsible for any misconduct done by the other partner.
What LLP can do is sue and be sued in the company name. It can also acquire and hold property in its name and have a common seal in its name.
What it requires for registration is similar to that of a Partnership.
Company – (Pte.Ltd)
This is by far the most recommended business entity among all. Not only was it a separate legal entity, it also has the most tax benefit compared to other business entities. Then again with great advantage come some responsibilities.
What it needs is Singaporean, Singapore PR or Entrepass holder of full legal capacity as a Director. Then we need at least one shareholder for the company. Within the 6 months of registering your company you need a corporate secretary (It can be a company) who not only understands but also is able to execute compliances duty required by the government. A physical registered Singapore address and at least 1 Singapore dollar paid up Capital.
A company registration required the photocopy of the front and back of IC for local residents.
Foreigners (including shareholders) will need photocopy of the front and back of IC, Passport, proof of residency of at least 3 months and have all the documents translated if not in English and notarized.
With that out of the way next up is setting up a name. What is a protagonist without a proper name? However there are a few rules in naming your company that need adhering to. For one it mustn’t be names identical to an existing business. Secondly, there are strictly no undesirable names that contain vulgarity, obscenity and offensive expressions. Lastly is to not have names prohibited by the order of the Minister for Finance.
The time required for the registration for all business entities are all at about 1 day least it is a name that includes the word “school” which needed Referral Authorities such as minister of education about 14-60 days to approve.
Cost for application of Business name is at $15. Once the name application has been approved, the name will then be reserved for 120 days.
All these registration will be done in a website known as ACRA. An owner can either apply directly at ACRA themselves, Or If you are a beginner then it is highly advisable for you to choose a trustworthy company to deal with all the paperwork so to minimize delays due to mistakes while filling up the forms and providing the necessary documents for approvals.
At W.L.P Group we aim to offer hassle free service for you so that you can have a smooth and stress free start up. In any case if you happen to still find that choosing the right business entity is still daunting, why not consult us at W.L.P as well, so that we can explain the entities in detail thus helping you make the decision that is most suitable to you.
Lastly, once all of these are done, there you have it, a company of your own to flourish and grow into unlimited possibilities.
