BUSINESS (SOLE PROPRIETOR / PARTNERSHIP)
A business refers to a sole-proprietorship registered by one business owner or a partnership formed by 2 or more partners. It is not a private limited local company (i.e. Pte Ltd). Individuals and companies, being “legal entities”, may set up and own a sole-proprietorship or partnership.
A local company is a business entity incorporated in Singapore. A company has the right to own property, has perpetual succession and can sue or be sued in its own name. Companies have different setups and are distinguished by the company type e.g. private company limited by shares, exempt private company, public company limited by shares and public company limited by guarantee.
A foreign company is a company, corporation, association or any other body incorporated outside Singapore. A foreign company may carry on business in Singapore by incorporating a local company or registering as a foreign branch under the Companies Act. The foreign company is required to have a registered name, at least 1 local authorised representative and a registered office in Singapore.
A Limited Partnership (LP) is a partnership consisting of a minimum of two partners, with at least one general partner and one limited partner. A LP does not have a separate legal entity from the partners, i.e. it cannot sue or be sued or own property in its own name. A general partner is responsible for the actions of a LP and is liable for all debts and obligations of the LP. A limited partner is not liable for debts and obligations of the LP beyond his agreed contribution, provided he does not take part in the management of the LP.
LIMITED LIABILITY PARTNERSHIP
A Limited Liability Partnership (LLP) is a business vehicle that gives owners the flexibility of operating as a partnership while having a separate legal identity like a company. The LLP has perpetual succession, which means any change in the partners of an LLP will not affect its existence, rights or liabilities.