Most common business entity in Singapore
The Private Limited (Pte Ltd) is the standard choice for most small- to mid-size businesses in Singapore. Like a US LLC, it provides limited liability protection separated from the owners' personal assets. Must appoint local director (nominee ~$1.5-3k/yr) and corporate secretary ($600+/yr).
The full menu of Singapore business structures
| Structure | Liability | Tax | Best for |
|---|---|---|---|
| Private Limited (Pte Ltd) | Limited | 17% corporate | Most operating businesses |
| Sole proprietor / self-employed | Unlimited personal | Personal income tax rates | Freelancers, one-person services |
| Partnership | Joint and several | Pass-through to partners | Professional services (law, accounting) |
| Branch of foreign company | Parent company liability | 17% on Singapore-source profits | Foreign companies entering Singapore market |
| Public limited company | Limited | Same as Private Limited (Pte Ltd) but stricter | Companies preparing for listing |
Which one should you pick?
- Freelance or one-person service in Singapore? Self-employed structure if simple, Private Limited (Pte Ltd) if you want liability protection.
- Software / e-commerce / agency? Private Limited (Pte Ltd) — standard, scalable.
- Operating an existing foreign company in Singapore? Branch (simpler) or subsidiary Private Limited (Pte Ltd) (more substance).
- Planning to raise venture capital? Confirm investors accept Singapore entities. Many require a US Delaware C-Corp flip — see US company formation.
- Holding company for IP or other companies? Private Limited (Pte Ltd) with minimal substance requirements.
The Private Limited (Pte Ltd) in one paragraph
Private Limited (Pte Ltd) is Singapore's primary limited liability vehicle. Minimum paid-up capital: nominal. Headline corporate tax: 17%. First S$200k of chargeable income gets 75% exemption on first S$10k and 50% on next S$190k; effective rate often 5-8% for SMEs.. Banking accessibility: 9/10. Privacy: 5/10 (UBO non-public). Remote formation: yes. Processing time: 1 business day.
For US comparison, see Singapore vs USA. For non-resident formation specifics, see forming a Singapore company as a non-resident.