How to Register a Sole Proprietorship in Singapore?

How to Register a Sole Proprietorship in Singapore?

Singapore has a very rich and developed enterprise ecosystem and allows all forms of businesses, from very large multinational corporations to very small sole proprietorships. All business activities generating profits must carry out Company Registration in Singapore. The country has one of the fastest-growing startup communities in the world with the number of startups almost doubling over the last decade and many of which Register Sole Proprietorship in Singapore.
What is a Sole-Proprietorship Business?

A sole proprietorship business is owned, managed, and controlled by an individual, a company or a limited liability partnership with no partners in the business.

The legal status of a sole proprietorship includes no separate legal entity from the business owner who has unlimited liability and is personally liable for all the debts and losses of the sole proprietorship business.

Who can Set up a Sole Proprietorship Business in Singapore?

For setting up a sole proprietorship, you must be at least 18 years of age and either a Singapore Citizen or Singapore Permanent Resident, or an eligible Foreign Identification Number (FIN) holder.

Requirements for a Singapore Sole Proprietorship mandates Self-employed to top up their Medisave account with the CPF Board before registering a sole-proprietorship business or becoming a new owner of an existing business, or renewing business registration.

Once registered, their Medisave contributions must be kept updated with the CPF Board.

Why Register a Sole-Proprietorship in Singapore?

The process of Sole Proprietorship Registration is relatively easier compared to other business vehicles and selling off and transfers can be done conveniently without any headache through a name transfer. This company form also has minimal compliance requirements with no need to make changes in business details resulting in reduced administrative costs. The accounting compliance is simple too with only 4-line statements for Sole-Proprietors having revenue less than SGD 500,000.

Are Foreigners Allowed to Register a Sole Proprietorship Business in Singapore?

Formation of a Sole Proprietorship is allowed for the foreigners residing overseas. However, if they wish to register a sole proprietorship, they must appoint at least one local resident authorised representative.

Foreigners willing to manage business operations physically from Singapore must seek approval from the Ministry of Manpower after registering the sole proprietorship business. If they don’t have a Singpass account, they must engage the services of a registered filing agent including a corporate services provider to apply on their behalf.

What are the Process Steps for Singapore Sole Proprietorship Business Registration ?

Registering a sole proprietorship business in Singapore involves the below-mentioned steps

Choosing a Name

Once you have identified a suitable name in line with your business activity, search BizFile+ to find out the name availability.

Registering a Name

Once a name is chosen, register a business name via BizFile+.

Specifying your Business Activity

You then specify the primary and secondary business activities as per Singapore Standard Industrial Classification (SSIC) code.

Providing Business Address

rovide your business address except for P.O. Box address and for small-scale businesses, you may use your residential address.

Providing Residential Address

All business owners must provide their residential address at the point of registration.

Obtaining Licences and Approvals

Based on your business activity, you may need licences or approvals from other government agencies.

Want to learn more about Sole Proprietorship in Singapore?

Speak to one of our experts today.

How to Register Sole Proprietorship in Singapore?

Login to BizFile+ to register a sole proprietorship business and provide your consent.
What is the Unique Entity Number?
Newly registered businesses are issued a system-generated Unique Entity Number (UEN), an identification number meant for future transactions with government authorities.
How much is ACRA Sole Proprietorship Fee?
The fees for sole- proprietorship business include a name application fee and registration fee totalling SGD 130 and the renewal fee is SGD 30.
What is the Processing time For Registration of Sole-Proprietorship Business in Singapore?
Sole proprietorship registration usually takes 15 minutes for approval after the registration fee is paid. In case an application needs to be referred to another government agency for approval, it may take between 14 days to 60 days in general.
The Takeaway
Selecting the right startup is the most important first step and stands between the success and failure of your business. A sole proprietorship can be a better choice than a company as it can help you avoid a lot of corporate secretarial and accounting issues.

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