This is a guest post written by Squarebook.
As an aspiring business owner looking to start a business in Singapore, a crucial step in the business formation process is in deciding the structure of the company. There are 3 common types of business structures – 1) Sole proprietorship, 2) Partnership and 3) Private limited company.
The sole proprietorship and partnership structures have many similarities, aside from the number of proprietors involved.
In this article, we explore and compare two choices on each extreme end: Sole proprietorship and Private limited company.
For ease of reading, you may refer to the infographic below.
In summary, Private limited company incorporation comes with more compliance costs compared to a Sole proprietorship structure.
However, the Private limited company structure reaps more benefits in the form of grants and tax savings.
These savings could be significant, especially for larger businesses, since they can enjoy a greater proportion of tax savings. Even after taking into account compliance costs, the tax savings enjoyed is still greater.
Should you want to expand your business, or switch from a Sole Proprietor/Partnership structure to a Private limited company, Squarebook is professionally equipped to help you make the transition an easier one.
Squarebook Advisory is a Singapore-based company which provides accounting, tax, and corporate services to small and medium-sized businesses, startups, and entrepreneurs. Click here to see the original post on their blog. To find out how they can help you attain a business structure most suitable for your needs, you may contact them at +65 9162 2643.