Which Has Lower Tax? Private Limited vs Sole Proprietorship

Choosing a business structure in Singapore is not just a paperwork decision. It directly affects how much tax you pay, how exposed your personal assets are, and how easily your business can grow.

In this video, Djon from Statrys walks through the real differences between a private limited company and a sole proprietorship, with a simple focus on tax, risk, and long-term flexibility. If you are deciding how to start or wondering whether it is time to restructure, this breakdown will help you see which option makes more sense for your situation.

Key Takeaways:

• How private limited companies and sole proprietorships differ legally in Singapore
• Why private limited companies are taxed at 17% while sole proprietorships are taxed as personal income up to 24%
• How limited liability protects personal assets in a private limited structure
• Why reinvesting profits is usually more tax-efficient under a private limited company
• The impact of each structure on fundraising and investor confidence
• When a sole proprietorship can still make sense for small or early-stage businesses
• Why growing businesses often transition from sole proprietorship to private limited