Forming a Singapore Sole Proprietor
Singapore Sole Proprietor is the one who takes full control, administration and responsibility for a sole proprietorship business. Sole Proprietorship is the simplest form of business structure in Singapore. Singapore citizens or permanent residents; holders of Employment Pass, EntrePass or Dependant’s Pass may register a Sole Proprietorship. Foreigner individuals and companies may also register Sole Proprietorship but must appoint a Singapore resident manager. Unlike a private limited liability company, a sole proprietorship does not provide limited liability protection and your personal assets are not protected from business risks.
These are the advantages of a sole proprietorship business structure.
No annual returns filing required of a Sole Proprietorship as income is taxed at personal income tax rate.
Very few compliance requirements and written documentation
The business itself is flexible. Any decisions and changes can be made easily as there is only one person to make the relevant choices.
All the profits generated by the business will belong to the Sole Proprietor.
Sole Proprietor owns his business and so are able to sell or transfer it as he wishes.
The following are the basic considerations for sole proprietors who wish to form a Singapore company.
Basic Requirements for Singapore Residents:
Any Singapore-registered company or a natural person of at least 18 years of age
Bankrupts who are not discharged and persons disqualified under specific clauses are not eligible to register
Singapore citizens or PRs must ensure there are sufficient funds in their Medisave accounts before proceeding with the registration
Basic Requirements for Foreign Individuals and Companies
All foreign individuals and companies can register for Sole Proprietorship as long as they appoint a Singapore manager
The appointed manager must be a natural person of at least 21 years of age, and either a Singapore Citizen, Permanent Resident, EP, EntrePass, or Dependent Pass holder
Basic documents required from sole proprietors:
Description of principal activities
Proposed business name
Local business address for the proposed business
Copy of Singapore ID for the owner
Local residential address of Sole Proprietor
Declaration of compliance and Statement of Non-Disqualification