In Singapore, if you are committed to any action that is achieved constantly for the goal of gain, you must enroll a business (such as sole proprietorship, private limited company, or limited liability partnership).
Sole Proprietorship is the modest kind of business structure in Singapore. Nonetheless, it is adequate just for very minor single-owner type businesses that do not hold up any dangers. Unlike a private limited liability company, a sole proprietorship does not give limited liability insurance and your private assets are not conserved from business hazards.
Sole-Proprietorship – Facts:-
- A Sole Proprietorship in Singapore does not comprise a distinct legal entity therefore it is not different from the owner/proprietor. The business holder is privately responsible for all penalties incurred during the business.
- Any Singapore registered corporation or a normal individual of at least 18 years of age is competent to enroll a sole proprietorship.
- Sole proprietors must nominate at least one manager who is a normal individual of at least 21 years of age and who is ordinarily a citizen in Singapore – a Singapore Citizen or a Permanent Resident. In maximum lawsuits, the holder himself/herself will work in this capacity.
- A local Singapore address must be given as the business address for the sole proprietorship. Under the Home Office Scheme, residential premises can be utilized as a business address but owners must pursue written permission from HDB (for HDB properties) or URA (for private properties) to use their homes (owned or rented) for home office usage.
- Singapore citizens or PRs reporting for a sole proprietorship must assure that their Medisave funds have adequate budgets before continuing with the registration.
- Earnings of the sole proprietorship are dealt with the revenue of the person who acquires the entity, thus it is subjected to a tax rate as that of personal revenue, and where the owner is a private limited corporation, the earnings will be subjected to the corporate tax rate.
- Singapore Sole Proprietorship is not a lawful body, it cannot enroll another business firm.
- Sole proprietors must assure that all letterheads, invoices, ordinances, or other documents utilized for the goals of performing business have the registration number recorded.
- Sole proprietors do not require to audit their reports or file annual returns with ACRA as any earnings will be taxed as personal taxes.
- Raising funds or expansion choices as a sole proprietorship will be restricted because investors will flinch at handling non-incorporated entities.
- Any modifications to the details of the business must be housed with the Registrar within 14 days from the date of modification.
- Registration of Singapore Sole Proprietorship requires to be revived yearly.
Ø Documents Required and Registration Procedure
To enroll a Sole Proprietorship business in Singapore, the subsequent documents/information is needed:-
- Designated business name
- Explanation of principal actions
- Local business address for the proposed company
- Copy of owner’s Singapore ID
- Local residential location of the sole proprietor
- Statement of subordination and Statement of Non-Disqualification
The registration procedure is computerized and timely. Registration of sole proprietorship can be finalized within 1 day, given all the papers are lodged appropriately with due approvals. With Timcole, you can complete your process and formalities with no hassle and in the least time possible. Moreover, Timcole provide company secretary service as well. So, we don’t leave you once registered successfully.
Still, if the name or the essence of the business compels referral to another council, it may take up to a few weeks. Examples of companies that may be pertained to related authorities comprise economic, media, academic services, etc.