Singapore Sole Proprietorship Minimum Setup Requirements
Sole proprietorship is a form of business entry that can be used by Singapore citizens
, permanents residents, holders of Employment Pass, EntrePass or Dependants Pass. A foreign individual can also be a Singapore Sole proprietor. However, a foreign individual or company will need to hire an authorized business registration firm such as Rikvin to assist them with the formation of Sole Proprietorship with ACRA.
These are the minimum requirements for Singapore company setup of a sole proprietorship:
Singapore Company/LLP can also register a business.
Singapore registered office address
Foreigner residing overseas can partner with locally resident person or Appoint local manager
Medisave must be paid up with CPF Board for yearly renewal
In addition, these are the advantages of a sole proprietorship:
No annual returns filing required of Sole Proprietorship as income is taxed at personal income tax rate.
Very few compliance requirements and written documentation
The business itself is flexible. Any decisions and changes can be made easily as there is only one person to make the relevant choices.
All the profits generated by the business will belong to the Sole Proprietor.
Sole Proprietor owns his business and so are able to sell or transfer it as he wishes.
On the other hand, these are the disadvantages of Sole Proprietorship:
A Sole Proprietorship has unlimited liability. This means that the Sole Proprietor is responsible for all debts and losses of the business, which can put all personal assets at risk.
In the event of a business failure, the creditors can sue the sole proprietor for all debts incurred.
As there is only one person with overall responsibility for the success of the business this may increase the pressure on that individual.
Important Notes
1.Engage Rikvin to assist you with the registration of a Sole Proprietorship with ACRA.
2.Go to Services and Fees and order an incorporation package.
3.You can also drop in at our office and we can help you register with ACRA in less than hour. Please see Checklist for documents required for registration of a Sole Proprietorship.