8366 3660 ask@ebos-sg.com

Sole Proprietorship Registration Requirements

  • All Singapore citizens,
  • Permanent Residents,
  • Employment Pass
  • EntrePass holders

Foreign individuals and companies can register as long as a local authorised representative is appointed.

Requirements for Registration of Sole Proprietorship

  • One Owner
  • Owner can be natural person (must be 18 years old and above) or company
  • Owner who is NOT a Singapore Citizen, Singapore Permanent Resident (PR), Employment Pass (EP) holder or Entrepass holder must appoint a local authorised representative (see below for local authorised representative eligibility)
  • Medisave (Singaporean or PR only) must be paid up with CPF Board. Singaporeans
  • Cannot be an undischarged bankrupt or convicted of any offence involving fraud or dishonesty whether in Singapore or elsewhere

Requirement for Local Authorized Representative

  • a Singapore Citizen above 18 years old
  • a Singapore Permanent Resident (PR) above 18 years old.

Information and Documents Required

  • Proposed business name
  • Description of business activities
  • Local business address
  • Copy of Singapore ID/Passport for the partners/managers (if owner is a company, please provide certificate of incorporation, company profile showing details of its directors and also a memorandum appointing an individual as authorised representative to sign all documents)
  • Residential address of partners/managers
  • Declaration of compliance and Statement of Non Disqualification to act as manager

Registration Timeline
Registration can be completed within 2 hours once the name is approve.

Tax for Sole Proprietorship
Profits of a sole proprietorship are treated as its owner’s personal income.

  • If the owner of a sole proprietorship is an individual, it is tax at personal income tax rate.
  • If the sole proprietorship is a company, it is tax at corporate tax rate.​

Features of Sole Proprietorship

  • Sole proprietorship is not a se parate legal entity from its owner
  • Owner of the sole proprietorship is fully and personally liable for all debts and losses incurred during course of business
  • Not perpetual nor transferable by part as business ceases with the death of owner
  • Sole proprietorship cannot register another business firm as it is not a legal entity
  • Investors are often hesitant to deal with non-incorporated entities and bank loan is difficult to obtained.
  • Sole proprietorship requires annual renewal of registration

Advantages

  • Quick and easy set up
  • No need to audit accounts or file annual returns with ACRA.
  • Cheapest method to set up a business in Singapore.

Disadvantages

  • Unlimited liability. Owners are personally liable for all debts and obligations and therefore personal assets are at risks. You may want to avoid setting up as a sole-proprietor if your business involved in huge monetary.