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.