A Sole Proprietor is suitable for small businesses that have negligible or no risks. It is owned by one person who is the decisive authority and owner of all assets and liabilities belonging to the business; therefore, sole proprietorship may be the simplest business set up. All profits by the business belong to the sole proprietor and subjected to personal income tax. Sole proprietors are also required to contribute to CPF Medisave (individual rate between 6-8%).
Owned by one person or one locally incorporated company 1 individual manager is required and manager has to be an ordinary resident of Singapore who can be a Singapore Citizen/Permanent Resident/Employment Pass Holder/Dependents’ Pass Holder.
Sole Proprietorships are required to have a Local Registered address (P.O. Box not allowed).
Sole-traders are self-employed and pay personal income tax on the profits made by the business.
Quick and easy set up – Many low-risk service businesses such as copywriters, small retailers, pet groomers and designers start off as sole-proprietorships.
Easy to administrate – Sole-proprietors do not need to audit their accounts or file annual returns with ACRA.
Flexible to manage – The owner is the sole decision maker.
Exclusive use of profits – The owner receives all the business profits.
The owner bears all costs and risks.
The owner is personally accountable for debts and losses. The owner may be required by law to sell off personal assets (e.g. house, car, shares, etc.) to pay off debts and losses. You may want to avoid setting up as a sole-proprietor if your business involves big risks and possibly huge losses.
Borrowing powers for sole-proprietors are more limited. To secure loans from banks and lending institutions, the owner must be prepared to put up his/her own personal assets as collateral.
The owner cannot raise funds by selling a stake in the business to investors as sole-proprietorships can only be owned by a single individual or company.
As the business and owner are inseparable, the business may come to a standstill when the owner falls sick or dies.
Our Registration FeeSole Proprietor S$150.00
Singapore Company Name Reservation
Government Registration Fees
Preparation of Registration Documents