Key features & types of accounting entities
Compare the three types of public accounting entities (PAEs) in Singapore, including their key features and requirements.
Last updated 29 January 2026
What are PAEs
PAEs are business entities that provide public accountancy services. They must register with ACRA under the Accountants Act 2004.
Public accountancy services include:
Auditing and reporting on financial statements
Acts legally reserved for public accountants
Note: You do not need to register a PAE if you only provide non-public accountancy services such as bookkeeping or tax advice.
Comparing the types of PAEs
You can set up three types of PAEs in Singapore.
Comparison of PAEs
Type of PAE | Description |
|---|---|
Public accounting firm (PAF) | A sole proprietorship or partnership registered under the Accountants Act: One of the simplest business forms. As there is no legal split between you and the business, you are personally liable for debts and losses. |
Accounting limited liability partnership (ALLP) | A limited liability partnership (LLP) that protects every partner's personal assets from business debts. This gives you the flexibility of a partnership with the safety of a company. ALLPs are registered under the Accountants Act and the Limited Liability Partnership Act. They require compliance with both Acts. |
Public accounting corporation (PAC) | A company that offers the best protection for your personal money because it is a separate legal entity. However, it also has the most rules to follow. PACs are registered under the Accountants Act and the Companies Act. They require compliance with both Acts. |
Key features and requirements
Public accounting firm (PAF)
Key features of a PAF
Key features | Details |
|---|---|
Applicable legislation | You must comply with the Accountants Act 2004. |
Legal status | A PAF is not a separate legal entity. You can sue or be sued in your name or the PAF's name. |
Liability | As a sole proprietor or partner, you have unlimited liability. Partners are personally responsible for the partnership's debts, including those caused by other partners. |
Public accountant (PA) requirements | Sole proprietors must be PAs. If there are:
At least one partner who is a PA and lives in Singapore must control and manage the provision of public accountancy services. That is, a partner under section 18(3)(c) of the Accountants Act. |
Set-up fee | $115, which includes:
|
Taxes | Profits are taxed at the personal income tax rates for:
|
Accounting limited liability partnership (ALLP)
Key features: ALLP
Feature | Details |
|---|---|
Applicable legislation | You must comply with both: |
Legal status | An ALLP is a separate legal entity from its partners: You can sue or be sued in the ALLP's name. |
Liability | Partners have limited liability. You are not personally responsible for debts caused by other partners. However, you are liable for debts from your own wrongful actions. |
Statutory obligations | You must file annual declarations of solvency or insolvency |
Entity name suffix | Your ALLP must end with either:
|
Public accountant (PA) requirements | The number of PAs you need depends on your total number of partners:
At least one partner who is a PA and lives in Singapore must control and manage the provision of public accountancy services. That is, a partner under section 18A(3)(e) of the Accountants Act. |
Paid up capital requirements | Paid-up capital must be at least $50,000. |
Professional indemnity insurance | Your LLP must be covered by professional indemnity insurance. The amount to be covered is the highest of the three:
Note: Corporate practitioners refer to partners or employees who are PAs practising in the ALLP. |
Registration fees | $415, which includes:
|
Tax treatment | Profits are taxed at partners' personal income tax rates. |
Public accounting corporation (PAC)
Key features: PAC
Feature | Details |
|---|---|
Applicable legislation | You must comply with both: |
Legal status | A PAC is a separate legal entity from its directors and shareholders. You can sue or be sued in the company's name |
Liability | Shareholders have limited liability. This means they are not personally responsible for the company's debts and losses. |
Statutory obligations | PACs must comply with:
|
Entity name suffix | Your PAC must end with either:
|
Public accountant (PA) requirements | If your PAC has:
At least one director who is a PA and lives in Singapore must control and manage the provision of public accountancy services. That is, a director under section 17(3)(d) of the Accountants Act. |
Share capital requirements | Paid-up capital must be at least $50,000. |
Shareholding requirements | Only individuals can hold shares, not corporate shareholders. Company directors must be shareholders. At least two-thirds of voting shares must be owned by corporate practitioners. Note: Corporate practitioners refer to directors or employees who are PAs practising in the PAC. |
Professional indemnity insurance | Your PAC must be covered by professional indemnity insurance. The amount to be covered is the highest of the three:
|
Registration fees | $615, which includes:
|
Tax treatment | Profits are taxed at corporate tax rates. |