| 2-minute read | Sole Proprietorship, Private Limited Company (Pte Ltd), Cost to register Sole Proprietorship/Pte Ltd
In Singapore, a sole proprietorship and a private limited company (Pte Ltd) are two different forms of business structures that have different terms of ownership, liability, and management.
Sole Proprietorship
| • A sole proprietorship is a business owned and run by one person. |
| • Starting a sole proprietorship is relatively easy and inexpensive, as there are fewer formalities involved compared to setting up a private limited company. |
| • The business owner is personally responsible for all debts and obligations incurred by the business. |
| • The business is not a separate legal entity from its owner, and the business owner has unlimited liability over the debts and losses of the sole proprietorship. |
| • However, the owner may have difficulty raising funds or expanding the business due to the limited personal resources and liability exposure. |
Private Limited Company (Pte Ltd)
| • A private limited company is a separate legal entity from its owners, known as shareholders. |
| • Shareholders have limited liability, which means their personal assets are protected in the event of a lawsuit or other legal action against the business. |
| • The company is managed by directors, who are appointed by the shareholders. |
| • Setting up a private limited company can be more complicated and expensive than starting a sole proprietorship, but it can provide greater credibility and flexibility for business growth. |
| • A private limited company can raise funds by issuing shares and can have multiple owners, making it easier to expand the business. |
What is the cost to register Sole Proprietorship?
These are the relevant costs:
| Sole Proprietorship Transaction | Fee |
|---|---|
| Name application | $15 |
| Registration fee | $100 |
| Renewal fee | $30 |
| Conversion from Business/ Company to LLP | $40 |
| Lodgment of Notice of Error (NOE) | $60 |
What is the cost to register a Private Limited Company (Pte Ltd)?
These are the relevant costs:
| Private Limited (Pte Ltd) Transaction | Fee |
|---|---|
| Name application | $15 |
| Registration fee | $300 |
| Annual filing | $60 |
| Conversion within Company types | $40 |
| Lodgment of Notice of Error (NOE) | $60 |
| Registration of particulars relating to charges | $60 |
| Registration for amalgamation | $400 (separate company registration fee of $300 applies where the amalgamated company is a new company) |
| Application for Extension of Time (EOT) to file accounts or to hold Annual General Meeting (AGM) | $200 |
|
Other applications (see below): • Application for exemptions from Singapore Financial Reporting Standards requirements • Application for waiver to lodge annual filing of forms and documents relating to the operations of a foreign company in Singapore • Application for relief from requirements as to form and content of accounts and reports • Application for license to hold land under S23(2) • Application for omission of the word “Limited” or Berhad” • Application to the Registrar to direct a change of name |
$200 |
Information adapted from ACRA website (Sole Proprietorship | Pte Ltd) on the 17th February 2023.
In summary, the main differences between a sole proprietorship and a private limited company in Singapore are ownership structure, liability, management, and ease of starting and expanding the business.
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