Business Registration – Sole Proprietorship
A sole-proprietorship is a type of business entity registered under the Business Registration Act.
Features of a Sole Proprietorship
- Easy to register and easy to close.
- Not a separate legal entity (i.e. it cannot sue or be sued in its own name and it cannot own property).
- Owners are personally liable for all debts and obligations.
- Owned by one person or one company.
- Profits are taxed at personal income tax rates.
- Registration with ACRA must be renewed annually.
- 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.
Sole Proprietorship Registration
Requirements for Registration of Sole Proprietorship
- One Owner
- Can be natural person or company
- Must be 18 years old and above (with effect from 1 March 2009)
- Owner who is NOT a Singapore Citizen, Singapore Permanent Resident (PR), Employment Pass (EP) holder or Entrepass holder can appoint a local authorised representative (see below for local authorised representative eligibility)
- Medisave (Singaporean or PR only) must be paid up with CPF Board
- 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, Principle Place of Business (Registered Address). P.O. Box address is not allowed. For usage or home office scheme, you will need to apply for prior approval through HDB or URA depending on your residence type (we can provide you the address; which is in Singapore`s Central Business District)
The local authorised representative must be above 18 years old and be one of the following:
- a Singapore Citizen
- a Singapore Permanent Resident (PR)