OVERVIEW

 

A Sole Proprietorship is the simplest form of business entity with only one owner who is the decisive authority and responsible for all assets and liabilities belonging to the business.

 

Singapore citizens or permanent residents; holders of Employment Pass or EntrePass may register a Sole Proprietorship. Foreign individuals and companies may also register a Sole Proprietorship but must appoint a Singapore resident manager.

 

Features of a Singapore Sole Proprietorship

 

• It does not have a separate legal entity

• The owner has unlimited liability

• It cannot own property

 

Singapore Sole Proprietorship Requirements

 

• Minimum one owner

• A Singapore registered office address

• For foreign individuals and companies only: minimum one manager who must be a Singapore resident

   

Tax and Singapore Sole Proprietorship

 

Singapore Sole Proprietorship, though a tax resident, is not considered as a company entity; therefore its profit is taxed at personal income rate.

 

Advantages of a Singapore Sole Proprietorship

 

• Quick, easy and least expensive to set up.

• Easy to administer and manage because of undivided authority and control.

• Less administrative duties, on going compliance requirements.

• All the profi ts generated by the business will be taxed at personal income tax level.

• Easy to close.

   

Disadvantages of a Singapore Sole Proprietorship

 

• The owner’s assets are at risk since owner is responsible for all debts and losses.

• Earnings are charged at personal income tax rates and is deprived of incentives offered to companies.

• Lack of continuity; the business is identified with the owner therefore not perpetual and it ceases with the death of owner and is not transferable by part.

• Raising capital through loans from instituions or investors is difficult due to inferior image and dependency on sole owner.

• Must renew business registraion annually and top up CPF account.

• Sole proprietors do not enjoy tax exemptions and rebates available to corporations.

   

 

Notes

 

If you are a Singapore Resident who wishes to incorporate a Singapore Sole Proprietorship, the following must be fulfilled:

 

1. Come to Beaufort office, engage Beaufort to help you incorporate your Singapore Sole Proprietorship with ACRA in less than hour, once you provide all the documents.

 

Please see Process for documents required for registration of Singapore Sole Proprietorship.