How to set up a Sole Proprietorship in Singapore?
Sole proprietorship is the simplest and flexible form of business structure in Singapore. The sole proprietorship meets the statutory requirement to register all profiteering activities carried out on a continuous basis. However, as it does not constitute a separate legal entity and therefore it is not distinct from the owner/ proprietor. The business owner is personally accountable for all liabilities incurred during the course of the business.
In most of the cases, the owner himself/herself will act in the capacity of the manager but only if he is ordinarily resident in Singapore. Any appointed manager has to be a natural person of at least 18 years of age.
MOM will not issue an EntrePass to a foreigner who wishes to register and run a sole-proprietorship. Foreigner who wishes to set up a business and be present in Singapore to manage its operations must seek approval from MOM before registration.
Dependant Pass Holders may apply for a Letter of Consent to work for their own company once they can provide the ACRA profile of their sole proprietorship. You need to include a letter authorizing yourself to hire yourself on behalf of your business. Don’t forget to apply your corporate stamp.
This type of business entity essentially meets the statutory requirement to register all profiteering activities carried out on a continuous basis. Freedom from compliance formalities and undivided authority is a merit but also the limiting factor for potential growth and development.
As a non-resident foreigner engage the services of a professional firm to submit the online application on your behalf.
As a dependent pass holder or with any other permit to stay in Singapore which provides a SingPass you may log into BizFile using your identification number and SingPass to submit an online transaction. This can be done from home, office or at one of ACRA’s BizFile Kiosks.
- Proposed business name
- Description of principal activities
- Local business address for the proposed business
- Copy of Singapore ID of the owner
- Local residential address of sole-proprietor
- Declaration of compliance and Statement of Non Disqualification
- Singapore citizens or PRs registering Sole Proprietorship must ensure that their Medisave accounts have sufficient funds before proceeding with the registration.
At least one manager who is a natural person of at least 18 years of age and who is ordinarily resident in Singapore must be appointed if the owner himself/herself is a foreigner residing outside Singapore.
- Business must be carried out under the registered business name.
- Print your registration number on all letterheads, invoices, bills or other documents used for the purposes of the business.
- Renew your business registration annually on time using BizFile. Notify ACRA immediately if there is a change of business particulars, such as a change of address or business activity.
- Notify ACRA the moment you decide to end your business using BizFile.
- Sole proprietorships do not need to audit their accounts or file annual returns with ACRA as any profits will be taxed as personal taxes.