Rikvin Explains The Difference Between On Sole Proprietorship VS Limited Liability Partnership
by Nathan Lewis Saturday, April 16, 2011
“A Singapore sole proprietorship is very flexible as it rests full control of business in a single person, who is the proprietor,” says Rikvin, a company based in Singapore committed to assist businessmen, companies, and employees.
“The revenues of a sole proprietorship are taxed on a personal level with progressive tax rates. Thus, the business itself is not subject for auditing, and it is not required to file annual returns with ACRA and IRAS,” Rikvin adds.
It continues: “As the sole proprietor maintains full authority, the owner can decide on how the business is managed, which assets are purchased by its revenues or how the earnings are used.”
“The downside of the sole proprietorship is the absence of legal existence, which causes the sole proprietor to have unlimited liability which covers even the personal assets. The business also cannot own assets,” Rikvin continues to elucidate.
During registration, the sole proprietorship has to submit documents such as a Description of principal activities, local business address for the proposed business, declaration of compliance and statement of non-disqualification, and a copy of Singapore ID of the owner or the passport containing the personal information of the holder in case the proprietor is a foreigner.
Meanwhile, the limited liability partnership is different.
“Formed by at least two partners, the Singapore limited liability partnership is cloaked with legal personality. Thus, it can own assets purchased from its own revenues,” Rikvin continues.
“The best thing about having a legal personality is the protection from financial liability. Each partner is liable for his own decision and which does not affect all other partners,” chimes Rikvin.
Thus, the liability is limited to each partner, rather than to all.
During registration, partners have to comply with requirements such as the articles of organization, declaration of compliance, particulars of the partners such as ID or passport, and company registration details in case one of the partners is another business.
“In case of absolute foreign ownership, a local manager is appointed. Based on the Business Registration Act and Limited Liability Partnership Act, a local manager ought to have ordinary residence,” says Rikvin.
About the Publisher:
Rikvin has successfully helped foreign and local entrepreneurs form a Singapore company. The company provides complete corporate solutions to investors and entrepreneurs both local and abroad. Among its specializations are Singapore company registration, income tax Singapore and providing professional services relating to financing and compliance services.
Rikvin assures its clients of confidence in dealing with every transaction. Its employees maintain competence and above all, Rikvin’s principles adhere to business ethics and all applicable laws. Its goal is to provide a highly personalized and professional service worthy of our clients loyalty.
“Our phones are answered during business hours by specialists and not by an answering machine. We appreciate the value of your time and understand that a person cannot be replaced by technology. This is especially true when it comes to making important business decisions.”
For more information, visit:
Rikvin PTE LTD
20 Cecil Street, #14-01, Equity Plaza, Singapore 049705
Main Lines : (65) 6438 8887
Fax : (65) 6438 2436
Email : email@example.com
Rikvin provides Singapore Company Registration service including securing your Singapore Employment Pass and Singapore EntrePass Visa for Singapore Business Migration.
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