
Definition:
Sole Proprietorship (SP) is a business owned by a single individual.
Ownership: Owned by one person, either an individual or a corporation.
Legal status:
Not considered a separate legal entity.
Owner has unlimited liability.
Can be sued or sue others in the owner's name or in the business name.
Can own property under the individual's name.
Owner personally bears responsibility for the business's debts and losses.
Registration requirements:
Minimum age: 18 years or above [Singaporean / Singapore Permanent Resident / Dependent Pass (subject to Ministry of Manpower requirements)].
If the owner is not a resident of Singapore, a local authorized representative who is a Singapore resident must be appointed.
Self-employed individuals must contribute to their Medisave account with the CPF Board before registering or renewing the business.
Undischarged bankrupts require court or Official Assignee's approval to manage a business.
Formalities & expenses:
Quick and easy to set up.
Simple administration and management.
Minimal registration costs.
Fewer compliance requirements.
Registration must be renewed annually or every three years.
Set up fees:
SGD 15 for name registration.
SGD 100 for a one-year registration.
SGD 160 for a three-year registration.
Taxes:
Profits taxed at the owner's personal income tax rates.
Continuity in law:
Existence of the sole proprietorship is dependent on the owner's desire to continue the business and their life.
Closing of entities:
Cessation of business before the expiration of its validity.
Non-renewal of registration upon expiration.
The Registrar can cancel the registration if it is not renewed or if the Registrar determines that the business is defunct.
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