01
Limited Liability Company (LLC / Ltd / GmbH / Sdn Bhd)
The most common modern vehicle. Owners' liability is capped at their capital contribution, the company is a separate legal person, and governance is usually flexible.
Strengths
- + Limited liability
- + Credible with banks & customers
- + Flexible ownership
Trade-offs
- − More admin than sole proprietorship
- − Local director may be required
Examples · Pte Ltd (Singapore), Ltd (UK), LLC (US), GmbH (Germany), Sdn Bhd (Malaysia)
02
Corporation / Joint Stock Company
A share-based company designed to raise capital, with formal governance (board, shareholders, officers). The default vehicle for VC-backed startups and listed companies.
Strengths
- + Easy to issue shares & options
- + Investor-friendly
- + Path to IPO
Trade-offs
- − Heavier governance
- − Higher setup cost
- − More disclosure
Examples · C-Corp (US), PLC (UK), S.A. (France/Spain), JSC (Vietnam), AG (Germany)
03
Sole Proprietorship
A business owned and run by one individual. There is no separation between the owner and the business, so the owner is personally liable for all debts.
Strengths
- + Simple & cheap to start
- + Minimal compliance
Trade-offs
- − Unlimited personal liability
- − Hard to raise capital
- − Less credible
Examples · Sole Trader (UK), Auto-entrepreneur (FR), Micro-entreprise
04
Partnership / LLP
Two or more partners share profits and management. An LLP combines partnership flexibility with limited liability — popular for professional services.
Strengths
- + Tax transparent in many jurisdictions
- + Flexible profit-sharing
Trade-offs
- − General partners may have unlimited liability
- − Disputes can be complex
Examples · LLP (UK, Singapore, India), LP (US, Canada)
05
Branch Office
A registered presence of a foreign parent company. It is not a separate legal entity — the parent is liable for its acts — but it can usually conduct business and earn revenue.
Strengths
- + No new entity required
- + Profits consolidate to parent
Trade-offs
- − Parent fully liable
- − May trigger PE / tax exposure
Examples · Branches in MY, KE, ID, BR
06
Representative Office
A liaison-only presence used for market research, sourcing, or promotion. Cannot sign contracts or generate revenue locally.
Strengths
- + Lightweight market entry
- + Often tax-exempt
Trade-offs
- − No revenue allowed
- − Narrow permitted activities
Examples · Rep Office in VN, ID, PH, TH, CN