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.
All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.
Singapore has had a foreign worker hiring quota in place for several years and has undergone several adjustments to fit the nation’s demands. The government frequently reviews the quota system to ensure it is functional and efficient. The quota system involves taxes and other restrictions on the employment of foreign workers and limits the number of foreign workers a company may hire.
The Singapore Budget is the country’s fiscal plan for the current financial year that is planned with Singapore’s current and future needs in mind. 2025 marks Singapore’s 60th years of independence. Prime Minister and Minister for Finance, Mr Lawrence Wong, delivered his Budget 2025 speech on 18 Feb 2025.
In Singapore, employers have a legal obligation to ensure the safety, health, and welfare of their employees. As part of this responsibility, specific insurance policies are mandated by law to provide adequate protection for employees in various circumstances. Employers are required to provide Work Injury Compensation (WIC) insurance for certain categories of employees to ensure adequate coverage.
Foreigners intending to work in Singapore, even for a short period, must obtain the appropriate work pass. The type of pass depends on the nature of work, the duration, and the purpose of the visit. Working in Singapore without the proper pass can result in fines, deportation, or bans from entering Singapore.
