Features and Pricing
About this package
A Sole Proprietorship is a single owner business who assumes all assets and liabilities of the business. It is the most basic of business entities and the simplest one to setup and manage.
Setup Requirements for a Sole Proprietorship
- Minimum one owner
- A local registered office address
- Non-residents and companies must appoint at one local resident manager
- The CPF medisave account contribution must be made
Who can setup a Sole Proprietorship?
- Residents (Singapore Citizens, Permanent Residents, Work Visa holders)
- Non-residents may also do so but are required to appoint a resident manager.
Features of a Sole Proprietorship
- It does not have a separate legal entity as such it ceases to exist upon death of the business owner
- The owner assumes unlimited liability
- A sole proprietorship business is NOT allowed to own property
- It is the most cost effective business entity to set up.
- Easiest type of business to manage because compliance requirements is minimal. Also simplest business to de-register or close.
- The business owner is taxed under Personal Income Tax for all profits generated by the Sole Proprietorship.
Important factors for consideration
- Since the business owner is responsible for all debts and losses, his personal assets to exposed to risk .
- Corporate tax exemptions and rebates are not applicable to Sole proprietorships because profits are tax as personal income tax.
- Sole Proprietorships registrations must be renewed annually.
- Funds raising is generally more difficult
- Must renew business registration annually
- Must ensure that CPF Medisave account is fully topped up.
- Sole proprietors do not enjoy tax exemptions and rebates available to corporations.