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SOLE-PROPRIETORSHIP

A sole-proprietorship is the simplest business form that is owned by one person. It is not a separate legal entity from its owner; thus, the owner has unlimited liability. This means that the owner can sue or be sued in his/her own name, as well as in the business name. Business profit is taxed at the owner’s personal income tax rate. A sole-proprietorship cannot own properties in the firm’s name.

 

The Advantages of Sole-Proprietorship

  • Easy, fast, and inexpensive to form.
  • It is easy to administer and manage.
  • Unlike a private limited company, a sole-proprietorship has less administrative duties to adhere to.

 

The Disadvantages of a Sole-Proprietorship

  • Owners are personally liable for the debts, losses and liabilities of the business.
  • Owners cannot raise capital by selling an interest in the business.
  • Sole-proprietorships seldom survive the death or incapacity of their owners; thus may not retain value.

 

Registration Requirements

  • The owner must be at least 18 years old and a Singapore Citizen/ Singapore Permanent Resident/ Employment Pass Holder/ Dependant Pass Holder.
  • If the owner is not a resident in Singapore, he/she must appoint a local manager who is a resident in Singapore.
  • Self-employed persons must make sure that they have paid their Medisave account with the CPF Board before they can register a new business, join an existing business, or renew the license of an existing business.
  • An undischarged bankrupt needs an approval from the court or Official Assignee before he/she is allowed to manage a business.
  • Registration of a Sole-Proprietorship must be renewed every year.
  • The registration fee is $50.00 and the business name application fee is $15.00.

 

Cessation of Business

  1. By Owner.
    • Cessation of Business
  2. By the Registrar (The Accounting and Corporate Regulatory Authority – ACRA).
    • If the owner does not renew the yearly business registration.
    • If the Registrar is satisfied that the business is defunct.

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Limited Liability Partnership (LLP) >
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SMS/WA: +65 9855 5850
Block 52 Chin Swee Rd #03-29
Singapore 160052

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