Incorporating as a freelancer offers several advantages, with a Private Limited Company being the recommended business entity. Here are some benefits you can enjoy: Limited liability: With a Private Limited Company, your liability is confined to the amount of capital you contributed to the business. This ensures your personal assets remain protected. For freelancers and sole proprietors, personal liability for business debts and losses can put personal assets at risk. By incorporating as a Private Limited Company, you eliminate this risk and safeguard your personal assets. Tax benefits: Incorporating as a Private Limited Company offers tax advantages. Instead of paying personal income tax, the company’s profits are taxed at corporate tax rates. Moreover, under the Start-Up Tax Exemption (SUTE) scheme, newly incorporated companies are only required to pay normal chargeable income for the first three years. This scheme was introduced to support local enterprises and promote entrepreneurship in Singapore. Business credibility: Regardless of whether it’s a Public or Private Limited Company, registering as a Limited Liability Company enhances your business’s credibility. This signals to potential clients and investors that you are serious about your business and committed to growth. Financial institutions and suppliers also view Limited Liability Companies more favorably, which can further strengthen your business’s reputation. In summary, incorporating as a freelancer under a Private Limited Company provides limited liability protection, tax benefits, and improved credibility, making it the ideal choice for freelancers looking to establish a solid foundation for their business in Singapore. Read more about the difference between Sole Proprietorship and Private Limited Company here