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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

  • It is not a Separate Legal Entity

  • Business owner has unlimited liabilities to bear all debts and losses of the business

  • The business owner has absolute authority in running of the business


Benefits of Sole Proprietorship/Partnership

  • Ease of setup – Quick, easy and inexpensive

  • Control – easy to manage and administer 

  • Lesser compliance requirements and administrations 

  • Profits - profits generated by the business will belong to the sole-proprietor

  • 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

  • No Tax Exemption – unable to enjoy tax exemption and incentives available for private limited company

  • Unlimited Liabilities - Business owner has unlimited liabilities to bear all debts and losses of the business

  • Personal Income Tax - earnings are charged at personal income tax rates

  • Lack Continuity – business ceases with the death of owner and is not transferable by part.

  • Annual Business Renewal - must renew business registration annually

  • CPF Medisave - required to contribute to CPF Medisave (individual rate between 6-8%)

  • Unsuitable for high risk business


How to setup a Sole Proprietorship/Partnership in Singapore? 

Our service for registering sole proprietorship includes:

  • Performing a Business Name check availability

  • Follow up with queries and advise accordingly, if any

  • Preparation of application forms

  • ACRA Business profile upon successful registration

  • 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:

  • Minimum of one owner

  • Proposed business name

  • A Singapore Registered Office address

  • For foreign individuals and companies only - minimum one manager who must be a Singapore resident

  • All business owners and local representative to be present at our office

  • Bring along NRIC and/or passport of all owners and local representatives.

  • Brief description of business activities


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