Guide to Singapore Sole Proprietorship Registration

Last modified: December 12, 2015

Singapore-Sole-Proprietorship

An entrepreneur interested in carrying out business activities in Singapore has a number of options for Singapore business incorporation. Registering a Sole Proprietorship is an easier option for an entrepreneur who wants to start small and grow big.

Registration of Sole Proprietorship

Singapore authorities implement a simple sole proprietorship registration process. The entrepreneurs need to submit their identity and incorporation documents with the application to the ACRA (Accounting and Corporate Regulatory Authority). This body also acts as the Company registrar of Singapore.

The entrepreneur needs to apply to the ACRA to get the name of the proposed proprietorship approved and again to register the sole proprietorship. Singapore incorporation services provide useful assistance to the entrepreneurs in the task. The owner needs to renew the registration annually.

Documents Needed to Register a Sole Proprietorship

  • Approved name for the business firm
  • Details about the firms planned activities
  • Registered local address for the office
  • The owner’s Singapore ID
  • Owner’s local address
  • Declaration of compliance and Statement of Non-Disqualification

The Singapore residents wanting to register a Sole Proprietorship are also required to renew their registration or top up their Medisave accounts with the CPF Board.

We at the SG Company Incorporation, a well-known incorporation firm, prepare incorporation documents to register your business and apply to ACRA. If your documents are in order, the whole process takes only a couple of hours to get your sole proprietorship registered. However, if it requires the approval of the higher authorities, the registration may require 14 days to 2 months.

A sole proprietorship is the simplest form of business structure that an entrepreneur can use to set up a company in Singapore. Most importantly, the cost of registering this type of business firm is low as compared to registering a Limited Liability Partnership or a Private Limited Company.

What is a Sole Proprietorship to its Owner?

The prominent feature of a sole proprietorship is that it is owned by a single individual or corporate. Its owner is the sole decision-maker when it comes to implementing a business plan or changes to it.

For all purposes, it is not a corporate entity and raising capital for its expansion is difficult. A sole proprietorship does not have perpetual existence and dissolves when its owner dies. It is not subjected to the harsh statutory compliance by the authorities.

A sole proprietorship, on its own, is not a separate legal entity from its owner. That is why, the responsibility of the debts and liabilities of the sole proprietorships lies completely with its owners. The owner’s private assets, if it comes to that, are used to discharge the liability.

The Business Registration Act (Chapter 32) allows this business firm to take part in all types of commerce, trade, artisanship, profession and any activities that are undertaken for the purpose of monetary gains. It puts the owner in a unique position of being self-employed.

Singapore Taxation

The income of a sole proprietorship is considered as that of its owner. The owner needs to pay personal income tax, which ranges from 0% – 20%. A private limited company pays corporate income tax, which ranges from 0% – 17%.

A tax resident Singapore private company qualifies for the tax rebates, incentives, and exemptions. These are not available to the sole proprietorships.  That is why running this type of business is costlier. It is important to note that the range of personal income tax, from the YA 2017, is going to be from 0% to 22%.

Establishing a sole proprietorship, implementing, and tweaking a business plan to capitalize on the changing market condition is part of the learning curve of the self-motivated entrepreneurs. It prepares them for the future challenges and schools them in how to put a vision or the business plan in action.