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Singapore Business Registration:
Sole Proprietorship / Partnership
Difference between Sole Proprietorship and Partnership
The main difference between Sole Proprietorships and Partnership are the number of owners. Sole Proprietorship is a form of business entity with only one owner, who has the decisive authority and responsibility for all assets and liabilities of the business. A partnership is a business owned by at least 2 partners. The partner can be an individual, a company or a limited liability partnership. The number of partners in a partnership can be up to 20.
Eligibility of Sole Proprietorship/Partnership
Singapore citizens, Permanent Residents, holders of Employment Pass or Entrepass.
Foreign Individual and companies may also register a Sole Proprietorship but must appoint a Singapore resident manager.
Features of Sole Proprietorship/Partnership
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It is not a Separate Legal Entity
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Business owner has unlimited liabilities to bear all debts and losses of the business
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The business owner has absolute authority in running of the business
Benefits of Sole Proprietorship/Partnership
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Ease of setup – Quick, easy and inexpensive
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Control – easy to manage and administer
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Lesser compliance requirements and administrations
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Profits - profits generated by the business will belong to the sole-proprietor
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Time – Business registration can be done within an 45 minutes, subject to ACRA approval, upon receipt of all duly signed documents
Disadvantages of Sole Proprietorship/Partnership
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No Tax Exemption – unable to enjoy tax exemption and incentives available for private limited company
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Unlimited Liabilities - Business owner has unlimited liabilities to bear all debts and losses of the business
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Personal Income Tax - earnings are charged at personal income tax rates
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Lack Continuity – business ceases with the death of owner and is not transferable by part.
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Annual Business Renewal - must renew business registration annually
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CPF Medisave - required to contribute to CPF Medisave (individual rate between 6-8%)
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Unsuitable for high risk business
How to setup a Sole Proprietorship/Partnership in Singapore?
Our service for registering sole proprietorship includes:
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Performing a Business Name check availability
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Follow up with queries and advise accordingly, if any
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Preparation of application forms
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ACRA Business profile upon successful registration
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Open a corporate bank account, if required
Key Requirements for business registration
Sole Proprietorship and Partnership can normally be registered within 45 minutes. Requirements of setting up a Sole Proprietorship/a Partnership are:
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Minimum of one owner
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Proposed business name
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A Singapore Registered Office address
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For foreign individuals and companies only - minimum one manager who must be a Singapore resident
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All business owners and local representative to be present at our office
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Bring along NRIC and/or passport of all owners and local representatives.
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Brief description of business activities
FURTHER INFORMATION
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