Sole Proprietorship vs Pte Ltd
Business
A sole proprietorship is a business owned by one person, simple and cheap to set up, but it is not a separate legal entity, so the owner is personally liable for all debts and profits are taxed at personal income tax rates. A private limited company is a separate legal entity with shareholders, offering limited liability so owners are generally not personally responsible for company debts, and it is taxed at corporate rates with more compliance duties like annual filings. Choice depends on risk, scale, tax and image. Tax rates, compliance and registration rules are subject to the latest rules.