Sole Proprietorship Registration in Singapore
The simplest and least expensive form of business in Singapore is a sole proprietorship. You have absolute power over the running of the company and if it is a small scale, low risk company, then a sole proprietorship is the best form to run the business. If you wish to set up this form of company, here’s a guide to all you need to know about setting up your own sole proprietorship in Singapore.
Process of Setting up a Sole Proprietorship
In order to set up a sole proprietorship, you need to follow these steps:
- Submit an application form,
- Prepare the required documents and fees,
- Register your business
Requirements for Setting up a Sole Proprietorship
These are the documents that will be required for the registration of your sole proprietorship:
One owner of the sole proprietorship is required who will not distinguished from the business, and must be responsible for all liabilities incurred by the business.
At Least One Resident Manger
For foreigners who are setting up a sole proprietorship in Singapore, at least one resident manager is required. A resident manager can be any person who is above or 18 years of age, and holds any of the following qualities:
- Is a citizen of Singapore
- Holds an Entre Pass
- Holds an Employment Pass
- Holds a Dependant Pass
Registered Business Address
A business address must be registered where your business will take place. Note that a P.O. Box address is not considered as a business address.
However, a home/flat owner can register their home address as a business address for a sole proprietorship by seeking approval from the Housing and Development Board.
You can submit your application in Housing Development Board.
You would be required to provide your residential address as well.
You are free to choose any kind of name for your business as long as it is not:
- Vulgar or offensive in nature,
- Reserved under the Companies Act, LLP Act, LTD Act, or Business Names Registration Act,
- Already taken by a registered company, or
- A name restricted by the Minister.
The fee for a name application is $15.
Description of Principal Activities, Statement of Non Disqualification and Declaration of Compliance
A brief description about your business and its activities must be submitted in the registration process, along with a declaration of compliance and a statement of non disqualification.
Sufficient Balance in the Medisave Accounts
If you are a Singapore citizen, you need to make sure that you have enough funds in your Medisave accounts before registering for a sole proprietorship.
If you are a foreigner, make sure that the PR registering on your behalf has enough funding in their Medisave accounts before you move on with the registration process for the sole proprietorship.
Expiry and Renewal of a Sole Proprietorship
It is important to note that a sole proprietorship expires after a year or three years, and the business must be renewed before the expiry to avoid penalty.