Sole Proprietorship

Singapore Sole Proprietorship Registration


A Sole Proprietorship is the most adaptable form of business entity with only one owner who is the decisive authority and responsibility for all assets and liabilities pertaining to the business. Singapore residents or permanent residents may register a Sole Proprietorship. Foreign individuals and organizations may also register a Sole Proprietorship but must appoint a local resident manager.


Outline of a Sole Proprietorship


Requires Legal Identity: The registration does not provide it a separate legal identity. It is considered to be one and the same as the owner. As it requires legal identity, it cannot sue or be sued in its personal name and also cannot own property.


Validity/ Renewal: Registration must be revived. Renewal must be done before the registration lapses and can be renewed for a period of one year or for a period of three years.  


Eligibility: Any normal person whose age is 18 years and above can register a Sole proprietorship. A Singapore registered company is also qualified to register a sole proprietorship.


While Singapore residents and Permanent Citizens who are self-employed are needed to register for CPF and top up their Medisave account in order to register or renew their company registration.


Officer: In the case of immigrants who are not residing in Singapore a manager must be appointed to assure agreement with regulatory obligations and in order to accept notifications served and respond to them. The manager must be at least 21 years of age plus must be usually resident in Singapore. Generally resident indicates, a citizen or permanent resident of Singapore or immigrants on employment pass or dependent pass.


Registered Address: A local Singapore real address must be registered. Resident individuals in Singapore can use their domestic address as the enrolled office address after receiving approval from the appropriate authority (HDB in the case of public flats and URA in the case of private residences).


Taxation: Liable profits are treated as personal earnings of the owner and are subjected to personal income tax rates in the case of individual owners and corporate tax rates in the case of companies.


Limitation: As it does not represent a legal entity, a sole proprietorship cannot register different legal entities such as a partnership.

Continuity: A sole proprietorship will discontinue existing with the death or disqualification of the owner.


Highlights of a Sole Proprietorship


·         Sole Proprietorship Company Registration

·         It does not have a different legal entity

·         The proprietor has unlimited liability

·         It cannot possess the property


Advantages of being a Sole Proprietor


·         Fast, simple, and least expensive to set up.

·         Easy to administer and operate because of undivided authority and control.

·         Less administrative duties, ongoing compliance requirements.

·         All the gains generated by the company will be taxed at the individual income tax level.

·         Simple to close.


Drawbacks of being a Sole Proprietor


·         The owner’s assets are at risk as the owner is liable for all debts and losses.

·         Incomes are charged at personal income tax rates and are also deprived of incentives offered to corporations.

·         Absence of continuity; the company is identified with the owner hence not perpetual and it ceases with the death of the owner and is not transferable by part.

·         Boosting capital through loans from institutions or investors is challenging due to inferior image and dependency on the sole owner.

·         The requirement to renew business registration annually plus top up the CPF account.

·         Sole proprietors do not possess tax exemptions and rebates available to organizations.


Review of Setup Requirements for a Sole Proprietorship


·         Least one owner

·         A Singapore registered office address

·         To foreign individuals and companies only: minimum one manager who needs to be a Singapore resident

Assessment of Singapore Sole Proprietorship

·         Singapore Sole Proprietorship, though a tax resident, is not recognized as a company entity; hence its profit is taxed at personal income rate.




If you are a Singapore resident plus you need to set up a Sole Proprietorship, all you have to do the following:

Visit our office with your identification documents. Sole Proprietorship company registration can be done within 10 minutes.

Willing to incorporate a Singapore Sole Proprietorship?

Capital Radius's expertise is unique in Singapore. Along with years of experiences of know-how in enterprise incorporation, accounting, tax, payment, including immigration services, you can count on us to be your committed one-stop business solution.