Sole Proprietorship Registration Requirements
All Singapore citizens, Permanent Residents, EP, EntrePass and Dependent pass holders can register as a Sole Proprietor.
Foreign individuals and companies can register as long as a local resident manager is appointed.
Requirements for Registration of Sole Proprietorship
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, Entrepass holder or Dependant Pass holder must appoint a local manager (see below for local manager 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
You must have a business address. P.O. Box address is not allowed. To use residential address as your business address under the home office scheme, you will need to apply for prior approval through HDB or URA depending on your residence type (we can provide you a business address which is within Singapore`s Central Business District)
The local manager must be above 18 years old and be one of the following:
a Singapore Citizen
a Singapore Permanent Resident (PR)
an Employment Pass (EP) holder
a Dependant Pass (DP) holder
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
Sole proprietorship registration can usually be completed within 1 day as long as all the documents and information are complete and validly endorsed where required. In the event where the name or the nature of business requires referral to another authority, it may take a few weeks. Examples of businesses that may be referred to relevant authorities include financial, media, educational services, etc.
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 separate 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
All letterheads, invoices, bills or other documents used for the purposes of doing business have the sole proprietorship’s registration number listed
Limited capital or expansion options as investors are often hesitant 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
Quick and easy set up
No need to audit accounts or file annual returns with ACRA.
Simple business structure, the owner is the sole decision maker.
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 involves high risks such as offering term payments to clients.