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| 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

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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