Singapore Sole Proprietorship Registration Guide
Other useful information on Sole Proprietorship
The business structure of a Sole Proprietorship is perfect for small businesses that have negligible or no risks. The business is not separate from the owner. This means that the sole proprietor is not only the singular decisive authority of the business, but also fully responsible for all assets and liabilities of the sole proprietorship.
Taxes for Sole Proprietorship
As the business registered as a Singapore Sole Proprietorship is not considered a company entity, all profits are taxed at personal income rate. Sole Proprietorships also do not enjoy tax incentives and exemptions given to Private Limited Company.
Registration for Sole Proprietor
All Singapore citizens, Permanent Residents (Singapore PR), Employment Pass (EP) and Entrepreneur Pass (EntrePass) pass holders can register as a Sole Proprietor. Foreign individuals and companies can register as long as a local resident manager is appointed.
Sole Proprietorship for Singapore Residents
- Any Singapore-registered company or a natural person of at least 18 years of age
- Bankrupts who are not discharged and persons disqualified under specific clauses are not eligible to register
- Singapore citizens or PRs must ensure there are sufficient funds in their Medisave accounts before proceeding with the registration
Sole Proprietorship for Foreign Individuals and Companies
- All foreign individuals and companies can register for Sole Proprietorship as long as they appoint a Singapore manager
- The appointed manager must be a natural person of at least 21 years of age, and either a Singapore Citizen, Permanent Resident (Singapore PR), Employment Pass (EP) or Entrepreneur Pass (EntrePass) holder.
What you need to be a Sole Proprietor
- Proposed business name
- Description of principal activities
- Local business address for the proposed business
- Copy of Singapore ID for the owner
- Local residential address of Sole Proprietor
- Declaration of compliance and Statement of Non-Disqualification
How AsiaBiz can help: At AsiaBiz, registering your Sole Proprietorship is extremely fast and easy with our efficient and innovative application system. As long as you provide all necessary documents and the business name for registration, your Sole Proprietorship can be up and running within 30 minutes!
Registration may take more time in the event that your business name or nature requires referral to another authority. To ensure a speedy name approval during registration, ensure that your choice of name is not identical or similar to the names of any existing local company or business. Your choice of name must not be obscene or vulgar, already reserved, and infringe on any trademarks or copyright
Documents Issued by ACRA
The registrar will send you an email notification confirming successful registration along with the registration number. Now you can retrieve a business profile for your new Singapore Sole Proprietorship containing important registration information.
A hardcopy of your Sole Proprietorship registration is not required as the softcopy is perfectly valid and acceptable for all other administrative work you may require.
Your original email notification of successful business incorporation and new Singapore company profile are all you need to open a business bank account and phone line, or sign an office lease.
- Business is not a separate legal entity from the owner
- Sole Proprietor is fully liable for all debts and losses incurred during course of business
- Profits of the sole proprietorship are treated as income of the individual who owns the entity and subject to the personal income tax rate
- 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
- All letterheads, invoices, bills or other documents used for the purposes of doing business have the Sole Proprietorship’s registration number listed
- Limited options for capital injection or expansion options as investors often hesitate to deal with non-incorporated entities
- All changes to the particulars of the business must be lodged with the Registrar within 14 days from the date of change
- Sole Proprietorship requires annual renewal of registration
Ready to start a Sole Proprietorship in Singapore?
We’ve got it all covered. With AsiaBiz, you get a dedicated one-stop solution for your company incorporation, immigration, offshore setup, accounting, taxation, and corporate compliance needs.