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Singapore offers several ways to structure a business. The practical differences are who can own it, whether it is legally separate from its owners, who is personally responsible for its debts, and how much ongoing administration it requires.
1. Sole proprietorship
A sole proprietorship has one owner and is not a separate legal entity. The owner receives the profits, but is also personally responsible for the business’s debts and losses.
It can suit a solo owner who prioritises a straightforward setup and is comfortable accepting personal liability. It may be less suitable when the business will take on meaningful risk, needs multiple owners, or expects equity investment.
2. Partnership
A general partnership is run by 2 to 20 partners, except that certain professional partnerships may have more than 20. It is not a separate legal entity. Each partner can be personally responsible for partnership debts, including debts arising from another partner’s actions.
It can suit a small group that wants a simple partnership arrangement and understands the shared personal-liability trade-off.
3. Limited partnership (LP)
An LP has at least one general partner and one limited partner. General partners run the business and have unlimited liability. Limited partners generally have liability capped at the contribution they agreed to make, but they do not manage the business day to day.
This structure is designed for a specific active-owner and passive-investor pattern. It is not a separate legal entity.
4. Limited liability partnership (LLP)
An LLP has at least two partners and is a separate legal entity. Partners are generally protected from debts caused by other partners, while remaining responsible for their own wrongful acts. An LLP has partners rather than shareholders and cannot issue shares.
It can suit professional practices and other owner-managed businesses that want partnership-style ownership with limited-liability protection.
5. Private limited company (Pte Ltd)
A company is a separate legal entity owned through shares. Shareholders are generally not personally responsible for company debts. A private company can have up to 50 shareholders, can issue shares to bring in new owners, and continues to exist when its ownership changes.
The trade-off is more administration: companies must appoint key officers, maintain required registers and records, and meet annual filing requirements.
How to compare them
| Structure | Owners | Separate entity? | Personal liability |
|---|---|---|---|
| Sole proprietorship | 1 | No | Unlimited |
| Partnership | 2–20* | No | Unlimited for all partners |
| LP | 2 or more | No | Unlimited for general partners; generally capped for limited partners |
| LLP | 2 or more | Yes | Generally limited, with responsibility for one’s own wrongful acts |
| Private company | 1–50 shareholders | Yes | Generally limited for shareholders |
*Certain professional partnerships may have more than 20 partners.
The right choice depends on your ownership plan, comfort with personal responsibility, need for share-based investment, and willingness to handle ongoing requirements. Eligibility comes first: not every structure is available for every ownership arrangement.
Explore each structure
Use these focused guides for the definition, typical users, setup requirements, ongoing obligations, indicative costs and descriptive fit signals for each option.
- Private limited company (Pte Ltd)
- Sole proprietorship
- Limited liability partnership (LLP)
- Limited partnership (LP)
- Partnership
Compare your eligible options
Answer a few questions to get a recommendation and see the alternatives that remain available.