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Sole-Proprietorship

Sole-proprietorship is the most common and simplest form of business entity. It can be owned by an individual or a company.

Features of Sole-proprietorship

  1. The sole proprietor (owner) is responsible for all business transactions.
  2. A Sole-proprietorship is not a separate legal entity, therefore:
    • The owner is personally liable for all debts and liabilities incurred by the business;
    • It is not allowed to acquire or hold any property in its name.
  3. The business income will be taxed at the owner’s level, which is to say, if the owner is:
    • An individual: income to be taxed at personal income tax rate;
    • A company: income to be taxed at the prevailing corporate income tax rate.
  4. It has to be registered with the Accounting and Corporate Regulatory Authority (ACRA) and renew its licence annually.
  5. No statutory obligations such as filing of audited accounts and annual return.

Requirements of setting-up a Sole-proprietorship

  1. The individual owner must be at least 18 years of age.
  2. A Sole-proprietorship must have a business address in Singapore; while using a residential address as the business address will be subjected to Housing and Development Board’s (HDB) approval.
  3. If the owner is a foreigner or a foreign company, a local resident manager has to be appointed for discharging all obligations of the Sole-proprietorship.

Documents Required

  1. Desired name of business entity
  2. Copies of identification (NRIC and/or Passport) of the business owner (including residential address)
  3. Brief description of principal activities
  4. Registered business address
  5. Completed application forms

Procedure

  1. Application for Entity Name (subject to availability and approval by ACRA required)
  2. Registration of the business

Back to business registration for Singapore residents.