A business entity is a commercial, corporate and/or other institution that is formed and administered as per commercial law in order to engage in business activities, usually for the sale of a product or a service. There are many types of business entities defined in the legal systems of various countries. These include corporations, cooperatives, partnerships, sole traders, limited liability company and other specifically labelled types of entities.
Private Limited Company, Sole Proprietorship and Partnership are the predominant types of business found in Singapore.
LLP (limited liability partnership): owners have the flexibility of operating as a partnership while enjoying limited liability. An LLP can sue and be sued, acquire and hold property, and have a common seal.
Ltd/Bhd/Pte Ltd/Sdn Bhd (private limited company/Sendiran Berhad): ≈ Ltd. (UK). Maximum 50 shareholders. There also exist “exempt private companies”, being either owned by no more than 20 non-corporate shareholders, or wholly state-owned and designated by the finance minister as exempt.
Ltd/Bhd (public limited company/Berhad): ≈ plc (UK). There also exist public companies limited by guarantee, which conduct non-profit activities; the finance minister may approve the registration of such companies without the addition of the word “Limited” or “Berhad” to the name.
Singapore subsidiary company is a popular term used for a form of Singapore business entity. A subsidiary company can have different structures but is essentially a Private Limited Company and so is a separate legal entity. Characteristics of a Singapore subsidiary company include: i) 100% foreign ownership is allowed, ii) the company enjoys low tax incentives as per a resident company, iii) repatriation of profits is allowed and iv) the minimum paid up capital required is S$1.
Other forms including Pte exist