A ‘Sole Proprietorship’ may be described as a business that is carried on by an individual on his or her own without the use of a separate and distinct business form.
The sole proprietorship is the simplest form of business organisation. The law does not regard the sole proprietorship business as a different entity from its proprietor (or owner). As such, all rights that the business has are rights that belong to the proprietor. Similarly, all liabilities or debts that are incurred by the business are in law the liabilities or debts of the proprietor. The assets and profits that the business generates are owned by the proprietor who is personally liable to pay whatever tax payable in respect of these assets and profits. Should the proprietor die, the business will cease to exist.
Registration and Compliance
When a person wishes to carry on business in Singapore as a sole proprietor, he or she must first apply to register the business in accordance with the provisions of the Business Registration Act (Cap 32). This may be done by completing and submitting the relevant forms electronically using ACRA’s e-filing portal, Bizfile. The documents may be filed personally online or at ACRA or with the help of a professional firm of lawyers, accountants, chartered secretaries or service bureau. Subsequently, the proprietor must comply with all the requirements set out under the Business Registration Act such as the filling of changes in particulars of the business and its owner.
Under regulations made pursuant to the Business Registration Act, the Registrar may require a business owner who is not ordinarily resident in Singapore to appoint a local manager to be appointed.
Cessation of Sole-Proprietorship Business
A sole-proprietorship business will cease when the proprietor either dies or otherwise ceases to carry on business. The Business Registration Act requires any person registered under it who has ceased to carry on business to notify the Registrar of this. Failing to do so is an offence and may result in the imposition of a fine.
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From June 26, 2024, the processing time for Singapore Permanent Resident (hereinafter referred to as "PR") applications has been shortened to within six months. These changes made by the Immigration and Checkpoints Authority (hereinafter referred to as "Immigration Authority" or "ICA") establishes a clear timeline for PR application reviews.
Generally, a GST-registered business is required to account for output tax based on the consideration it receives when selling its business assets (including disposal of or transfer of asset to another party with consideration received). Similarly, the GST-registered business is also required to account for output tax when it disposes of, transfers or gives away its business assets for free and these assets still have market value, unless the cost of the asset is not more than $200 or no credit for input tax was allowed on the purchase/import of the assets.
In today's increasingly fierce global business competition, enterprises are constantly seeking more favourable development environments. Singapore, with its stable political environment, low-tax policies, sound legal system, and highly internationalized financial system, has become one of the most attractive destinations for company registration in Asia.
Singapore S Pass (“SP”) is a type of work visa that is designed for mid-skilled technical staff who wish to work in Singapore. Candidates need to earn at least S$3,300 a month and have the relevant work experience. You can apply for the Singapore SP if you are: A locally incorporated Singapore company and need to hire an employee from overseas; or You have an employment offer from a Singapore employer. In this case, your employer will make the SP application on your behalf.
