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Everything You Ever Wanted to Know About Registering a Sole Proprietorship Company in Singapore

Posted last September 4, 2015, 3:31 am in Services report article

With the increasing popularity of Singapore as the leading business hub, more and more entrepreneurs and investors from all over the world are seriously thinking to Setup Company in Singapore. Undoubtedly, the economic environment in Singapore is so much maneuvered, that it has a lot to offer to this younger brigade of entrepreneurs. Although, significant business entities established in Singapore are Private Limited Companies, a large number of dependent pass holders and local Singaporeans are in favor of starting a sole proprietorship company. However, not many are aware of the intricacies and the steps involved in incorporating a sole proprietorship company in Singapore. In this article, we will try to understand some of the basic facts related to sole proprietorship company incorporation in Singapore.

Facts Regarding Incorporating a Sole Proprietorship in Singapore

1)    Singapore corporate environment recognizes sole proprietor company as a business entity having no separate legal entity. However, the business structure is designed elaborately to cover all the compliances necessary to be met and to carry out all types of business activities, generating profit in a business. The major thing, business owners remain liable for all the liabilities, losses and debts incurred by the business.

 

2)    Usually, the owner himself acts as the manager of the company. Moreover, it is mandatory for the manager to be above 18 years of age and he/she must be a permanent resident of Singapore. If a foreigner is interested to incorporate a sole proprietorship company in Singapore, then he/she has to take approval from the Ministry of Manpower (MOM).

3)    If a dependent pass holder is interested to set up company in Singapore as a sole proprietorship, then he/she has to submit a letter of consent to work in his/her own company. Remember, all the documents furnished for registering a sole proprietorship firm and for submitting Letter of Consent must be duly attested with a corporate stamp. 

4)    Freedom from exhaustive compliance requirements and undisputed authority are the two major advantages of incorporating a sole proprietorship company in Singapore.

 

Eligibility Criteria to Register a Sole Proprietorship Company in Singapore

Any person above 18 years of age or any company operating in Singapore or abroad is liable to form a sole proprietorship company in Singapore. Please remember, individuals or business entities having charges of undischarged bankruptcy or convicted of a felony are restricted from setting up a sole proprietorship company in Singapore. For any doubt, it is strongly advisable to consult an accredited firm offering Singapore incorporation services or an agent with relevant experience in Singapore company incorporation.

Facts Related to Appointing a Local Manager

If the owner or the entrepreneur interested to setup sole Proprietorship Company in Singapore is not an ordinary resident of Singapore, then he/she is mandated to employ a local manager. Please make sure that the appointed local manager is above 18 years of age and is a Singapore resident, a Singapore permanent resident, an Employment Pass holder, a Dependent pass holder or holds Approval-in-Principal Employment Pass.

Process of Registering a Sole Proprietorship in Singapore

It is mandatory for a foreigner to employ a professional Singapore company incorporation services providing firm to act on their behalf and submit the incorporation application.

On the contrary, a Singapore citizen, permanent resident or a pass holder having SingPass can login directly into the ACRA’s BizFile portal and initiate the process of registering sole proprietorship firm single-handedly. Here is a list of documents required to incorporate a sole proprietorship firm in Singapore,

 

  •  Approved business name

 

  •  Description of principal business activities intended in the proposed business

 

  •  A registered Singapore address for the proposed business (P.O. Box address is not valid)

 

  •  Copy of Singapore ID of the owner/entrepreneur opting to start a sole proprietorship

 

  •  Local residential address of sole-proprietor

 

  •  Declaration of compliance and Statement of Non Disqualification

 

  •  Before proceeding with the registration, ensuring Medisave accounts has sufficient funds is one of the prime necessities for Singapore citizens, or PRs registering a Sole Proprietorship.

 

Summary of Some Interesting Facts Related to Sole Proprietorship in Singapore

 

  •  Singapore business incorporation as a sole proprietorship firm is easy, speedy and cost-effective business structure

 

  •  Sole Proprietorship does not have a separate legal entity from the business owner/proprietor

 

  •  Singapore does not consider a Sole Proprietorship as a perpetual entity

 

  •  Owner of the Sole Proprietorship firms is personally liable for all liabilities incurred during the course of business

 

  •  Owners/proprietors can enjoy undivided authority and control

 

  •  A Sole Proprietorship firm has to renew its registration on an annual basis

 

  •  All the earnings and profits generated by the Sole Proprietorship are taxed at personal income tax rates

 

  •  A Sole Proprietorship is not required to audit accounts or file annual returns with ACRA

 

SBS Consulting is one of the leading providers of Singapore company incorporation. Leaving behind a legacy of satisfied clientele, SBS Consulting also offers a range of corporate services like auditing, taxation, company secretary and services related to Visas, Passes and Immigration under one roof.

Contact: + (65) 6536 0036

Email: [email protected]

Website: www.sbsgroup.com.sg