A sole-proprietorship is a business firm having only one owner. It is the simplest and most flexible business structure. The vast majority of small businesses begin their existence as sole proprietorships. A sole proprietorship has but one owner. That sole owner may engage in any form of legal business activity anytime and anywhere .All sole proprietorships must be registered with the Accounting and Corporate Regulatory authority (ACRA).
Characteristics
- Owned by one person or one company.
- A sole-proprietorship is not a legal entity (i.e. it cannot sue or be sued in its own name and it cannot own or hold any property).
- Profits are taxed at personal income tax rates.
Conditions For Registration
- Almost anyone or any company can register a sole-proprietorship.
- However, there are some exceptions to the rule. For e.g. undischarged bankrupts would not be allowed to register such entities in Singapore.
Appointment Of A Local Manager
If the owner is not an ordinarily resident in Singapore, then the owner must appoint a local manager.
A person is not "ordinarily resident" if
- The person does not have a local address.
- Cannot legally remain in Singapore for a long period of time.
Criteria To Be A Local Manager
Should be above 18 years and be one of the following:
- A Citizen of Singapore.
- A Permanent Resident of Singapore
- An Employment Pass holder.
- An Approval-in-Principal Employment Pass holder
- A Dependant Pass holder.
Set Up Costs
Fees for approval of business name: S$15 per name.
Registration fees: S$50
Yearly renewal fees: S$20
Sole Proprietorship In Singapore
All Sole Proprietorship in Singapore must register with the Accounting and Corporate Regulatory Authority (ACRA). ACRA's objective is to make Singapore the trusted and best place for business. In order to achieve this objective, ACRA seeks to provide a responsive and trusted regulatory environment for businesses and public accountants. For more information about ACRA, please visit: Accounting and Corporate Regulatory Authority (ACRA)
However, certain individuals, professionals and organizations are exempted from registration.
Exemptions From Registration
- Individuals Who Are Exempted
- Individuals who are exempted from the registering process include:
- Licensed hawkers
- Domestic craftsmen
- Taxi drivers
- Trishaw riders
- Sampan men
- Farmers
- Private fish and prawn pond keepers
Professionals Who Are Exempted
Professionals such as lawyers and doctors do not need to register with ACRA as they are managed by their respective professional bodies. The Law Society is the governing body for the lawyers in Singapore, which is largely self-regulatory. The Academy of Medicine in Singapore is the governing body for doctors. Its governing constitution is stipulated in Articles 60-77 of the Memorandum and Articles of Association.
Organizations That Are Exempted
Organizations such as statutory boards, mutual benefits co-operatives and charitable institutions that are set up by law also need not register. By law a statutory board is an autonomous government agency established by an act of Parliament that specified the purpose, rights, and powers of the body.
Organizations such as statutory boards, mutual benefits co-operatives and charitable institutions that are set up by law also need not register. By law a statutory board is an autonomous government agency established by an act of Parliament that specified the purpose, rights, and powers of the body.
