Getting started · 6 min read · August 12, 2026
Pte. Ltd. vs sole proprietorship: which should you choose?
Liability, tax, credibility and cost compared — with a simple rule of thumb.
Both structures are quick to set up, but they behave very differently once money starts moving.
Liability
A sole proprietor is personally liable for the business's debts. A Pte. Ltd. is a separate legal entity, so your personal assets are generally protected.
Tax
Sole proprietors pay personal income tax at progressive rates up to 24%. Companies pay a flat 17% corporate tax, with partial exemptions that bring the effective rate much lower on the first S$200,000 of profit.
Rule of thumb
If you expect profits above roughly S$100,000, want to raise money, or need to sign contracts with larger clients, a Pte. Ltd. is usually the better choice.
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Talk to usThis guide is general information, not tax or legal advice. Rules change — check with your accountant before acting.
