Comparison on legal structures for Singapore startups

Apr 05

Comparison on legal structures for Singapore startups

Compare available company structures in Singapore suitable for startups

If you are considering to set up your company in Singapore, we have outlined below the best legal structure for your startup. We are looking into the following business types:

  • Sole proprietorship
  • Partnerships or General Partnerships
  • Limited Partnership
  • Limited Liability Partnership
  • Company or Private Limited Company


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register sole prop partnership in singapore limited partnership limited liability partnership singapore register private limited company singapore
Comparable terms around the world Sole Trader
in AU, UKEinzelunternehmen
in Germany
General Law Partnership
in AUoHG
in Germany
Commanditarian Partnership
in South AfricaKG
in Germany
in India, UK
in USAGmbH
in Germany
Suitability for startup
Not suitable for startups. Suitable for VCs.

Okay for very early stage and pre-seed startups.
Liability Protection for founders and inventors None None Founder: None

Investor: Yes

Yes Yes
Can issue preference shares? No No No No Yes
Can issue ESOPs? No No No No Yes
Can issue advisor shares? No No No No Yes
Corporate tax benefits? None None None None Yes


We have helped incorporate and given advice to some of Singapore’s best-known startups such as mobile-first e-marketplace Carousell Singapore, financial services platform Coins, and cloud video creation platform 90 Seconds TV. If you need assistance with your company setup, drop us a line below.


We have set up over 275+ startups in Singapore.