Singapore Firms and Entities Conversion: Rules and Process

The various conversions are allowed under the Companies and Business Registration Acts in Singapore. The most popular Converting Of Firms are listed here under this Guide which would help you to determine your decisions based on the requirements.

Why Conversion Matters

Converting a firm or entity is often a milestone for a growing business. Sole proprietorships may work well during early operations, but as the risks increase, owners need stronger structures. Converting into a company separates personal assets from business liabilities. It also creates a professional image, making it easier to attract investors, win contracts, and secure bank loans.

For many businesses, conversion is also about unlocking tax advantages. Singapore offers attractive corporate tax rates, which can reduce the financial burden on entrepreneurs. By choosing the right entity structure, business owners can save money while protecting themselves legally.

Conversion Of Firms Types

Sole Proprietorship to Partnership (General)
Sole Proprietorship to Limited Partnership (LP)
Partnership to Sole Proprietorship
Partnership to Limited Partnership (LP)
Limited Partnership (LP) to Sole Proprietorship
Limited Partnership (LP) to Partnership (General)
Limited Liability Partnership (LLP) To Company
Partnership (General) To Private Limited Company
Sole Proprietorship to Private Limited Company

Legal Framework and Authority

In Singapore, all conversions are governed by ACRA. The rules are strict, and compliance is mandatory. Business owners must cancel their existing registration before moving to a new entity type. They also need to transfer business assets, contracts, and employees into the new company.

Conversion of Firms Type	Details of conversion
Sole Proprietorship to Partnership	When more than one owner is added into the existing Sole Proprietorship firm the business structure will automatically fall into the category of Partnership (General) when there are at least two or more Partners become the owners.
Sole Proprietorship to Limited Partnership (LP)	*When the Limited Partner is leaving:* General partners have the ability to leave the partnership at anytime, while limited partners can only leave the partnership according to the terms specified in the partnership agreement. Deemed Registration as a Business Firm: When the last limited partner of the Limited Partnership (LP) has withdrawn from the LP, the LP registration will be suspended and the general partner(s) will be deemed to be registered as a sole-proprietorship or partnership under Business Names Registration Act. Addition of Limited Partner to Restore LP Registration: The LP registration will be restored once a limited partner is appointed to the LP. Upon restoration, the general partner(s) will cease to be registered under the Business Names Registration Act and the status of the business firm will be updated to “Ceased Registration”.
Partnership to Sole Proprietorship	When all other partners / owners are leaving the Partnership firm except only one person then the firm’s structure will automatically fall under Sole Proprietorship firm being with the sole ownership.
Partnership to Limited Partnership (LP)	*When the Limited Partner is leaving:* General partners have the ability to leave the partnership at anytime, while limited partners can only leave the partnership according to the terms specified in the partnership agreement. Deemed Registration as a Business Firm: When the last limited partner of the Limited Partnership (LP) has withdrawn from the LP, the LP registration will be suspended and the general partner(s) will be deemed to be registered as a sole-proprietorship or partnership under Business Names Registration Act. Addition of Limited Partner to Restore LP Registration: The LP registration will be restored once a limited partner is appointed to the LP. Upon restoration, the general partner(s) will cease to be registered under the Business Names Registration Act and the status of the business firm will be updated to “Ceased Registration”.
Limited Partnership (LP) to Sole Proprietorship	Deemed Registration as a Business Firm: When the last limited partner of the Limited Partnership (LP) has withdrawn from the LP, the LP registration will be suspended and the general partner(s) will be deemed to be registered as a sole-proprietorship or partnership under Business Names Registration Act. Addition of Limited Partner to Restore LP Registration: The LP registration will be restored once a limited partner is appointed to the LP. Upon restoration, the general partner(s) will cease to be registered under the Business Names Registration Act and the status of the business firm will be updated to “Ceased Registration”.
Limited Partnership (LP) to Partnership	Deemed Registration as a Business Firm: When the last limited partner of the Limited Partnership (LP) has withdrawn from the LP, the LP registration will be suspended and the general partner(s) will be deemed to be registered as a sole-proprietorship or partnership under Business Names Registration Act. Addition of Limited Partner to Restore LP Registration: The LP registration will be restored once a limited partner is appointed to the LP. Upon restoration, the general partner(s) will cease to be registered under the Business Names Registration Act and the status of the business firm will be updated to “Ceased Registration”.
Limited Liability Partnership (LLP) To Private Limited Company	The Partners of the Partnership firm can choose the same name to be applied with the proposed company by appealing with the authority ACRA. Once, the name appeal is approved then the Partners would have the company name with their former Partnership’s name. Settling the LLP’s debts (if any) followed by conversion of the remaining assets into the capital of new company. By doing so, the former LLP will be mostly able to transfer the existing employees, contracts, businesses, etc to the newly incorporated company.
Partnership (General) To Private Limited Company	Conversion of Partnership (General) into a Pte Ltd company is not something like conversion to Sole Proprietorship due to being a separate legal entity status to the Company. However, the Partners are having limited choices to choose. The Partners of the Partnership firm can choose the same name to be applied with the proposed company by appealing with the authority ACRA. Once, the name appeal is approved then the Partners would have the company name with their former Partnership’s name. Settling the Partnership’s debts (if any) followed by conversion of the remaining assets into the capital of new company. By doing so, the former Partnership will be mostly able to transfer the existing employees, contracts, businesses, etc to the newly incorporated company. Eg: Partnership: ACHI Biz Services After Conversion: ACHI Biz Services Pte. Ltd.
Sole Proprietorship To Private Limited Company	Conversion of Sole Proprietorship into a Pte Ltd company is not something like conversion to Partnership due to being a separate legal entity status to the Company. However, the owner is having limited choices to choose. The owner of the Sole Proprietorship firm can choose the same name to be applied with the proposed company by appealing with the authority ACRA. Once, the name appeal is approved then the owner would have the company name with his/her former Sole Proprietorship’s name. Settling the sole proprietorship’s debts (if any) followed by conversion of the remaining assets into the capital of new company. By doing so, the former Sole Proprietorship will be mostly able to transfer the existing employees, contracts, businesses, etc to the newly incorporated company. Eg: Partnership: ACHI Biz Services After Conversion: ACHI Biz Services Pte. Ltd.

Challenges During Conversion

Many entrepreneurs face hurdles during this process. Understanding legal requirements can be complex, especially for those with limited corporate knowledge. Tax implications must also be considered, as a company is taxed differently than a sole proprietorship. Transferring licenses and existing contracts often requires negotiation and approval from other parties.

Role of Professional Assistance

This is where expert guidance makes a difference. Service providers like ACHI Biz assist entrepreneurs with paperwork, legal compliance, and smooth transition strategies. Professional help reduces the risk of errors, saves time, and ensures that business owners remain compliant with Singapore’s strict corporate rules.

Benefits After Conversion

Once the conversion is completed, businesses enjoy several key advantages. They benefit from limited liability, meaning personal assets are shielded from business debts. Corporate tax rates are usually lower than personal rates, reducing overall costs. Companies can raise capital by issuing shares, which is not possible for sole proprietors or partnerships. Above all, the business gains credibility in the eyes of customers, partners, and investors.

Trusted Provider for Firms and Entities Conversion in Singapore

When you are intending to go ahead with conversion of existing Firms or Entities for whatever the reasons, ACHI BIZ could assist you to make it in adherence with compliance for such conversions. Most of the business owners or Partners in Singapore are willing to have seamless conversions with professionalism. Hence they prefer to engage a Corporate Service Provider (CSP) like ACHI BIZ to assist with the conversions and for various other matters which may arise in the course of the transactions.

Please refer to SERVICES if you wish to proceed or CONTACT us for more information.