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.
