If you are considering to set up a business without much capital, and that has very low business risk and is likely to generate income which will not significantly affect your personal tax exposure, registering for a business vehicle other than a Private Limited Company may be an alternate choice.

You may register for a sole proprietorship if you are a single owner, or decide on one of the 3 forms of partnerships (General Partnership, Limited Partnership and Limited Liability Partnership) if you are starting a business that involves 2 or more partners.
 
The key differences between a company and a sole proprietorship and partnership are :

• ● Taxable income for a company is taxed under the corporate tax system whereas taxable income for a sole proprietorship and partnership is taxed under the personal income tax system.
• ● Shareholders of a company have limited liability (to the extent of their capital contributed in the company), whereas owners of a sole proprietorship and partnership are exposed to business liabilities in varying degree (from unlimited liabilities to limited liabilities).
• ● A Private Limited Company and Limited Liability Partnership can own properties, whereas a sole proprietor, general partnership or limited partnership cannot own properties under their own name.
• ● Profits generated from Sole Proprietorship and Partnerships are subjected to CPF Medisave Contributions. You will be required to make Medisave contributions to your own CPF account if your share of trade income is more than $6,000 for the year.
• ● Click here to review the comparison chart across the forms of business organisations available to an entrepreneur.