What is the difference between a company and a business?
Here are some basic differences between a company and a business:
1. The business has unlimited liability. This means that the owners can be sued in their personal capacity by creditors. A company, on the other hand, has limited liability and creditors have to sue the company and not the directors or shareholders of the company.
2. It is cheaper to register a business as compared to a company. The fee for registering a new company is $315 and the fee for registering a new business is $65.
3. A business is not required to prepare or submit audited accounts to ACRA on a yearly basis but a company may be required to do so. The business has to renew its registration yearly but the company is not required to do any such renewal.
4. It is easier to close a business as compared to a company.
For more information, please visit the ACRA website at www.acra.gov.sg and click on "Registration".