Singapore Business Registration: Sole Proprietorship
A company that helps foreign individual, entrepreneur or a business professional who wants to setup a Singapore company as an individual.
by Duncan Lee Saturday, November 06, 2010
According to business solutions provider AsiaBiz Services, this structure has several advantages including less compliance matters, business formalities, and administrative duties which are usually a mandatory obligation for a more complex setup.
“A sole proprietor is not even required to submit his annual returns to the Accounting and Corporate Regulatory Authority (ACRA),” the company said.
Aside from the less business formalities, sole proprietorship is also quick and inexpensive to set up and register as long as a person is eligible under the Singapore law.
“While this business structure is the easiest to set up, it is important to note that people who have not been discharged from bankruptcy or those individuals who are disqualified under specific clauses will not be allowed to register a sole proprietorship,” AsiaBiz said.
Before entrepreneurs register for sole proprietorship, the business registration firm said that they should consider some downsides of this setup.
Under the Singapore law, a Singapore sole proprietor is not a separate legal entity from his business, which means that he is personally liable for all the acts, losses, debts, and liabilities of his business.
And since the sole proprietorship business is not a legal entity, it cannot be sued or own a property under its name.
Another disadvantage of this business setup is that its existence is very dependent on its owner. In this case, a business will cease its existence if the sole proprietor dies.
“Because the sole proprietorship does not enjoy perpetual existence, this is really not a good long-term setup for entrepreneurs who want to continue their business even if they are long gone,” AsiaBiz said.
With this, the business registration firm usually advise its clients to shift to private limited company if their sole proprietorship business already has a strong profit and has the potential to further expand.
Meanwhile, foreign businessmen can register a sole proprietorship business if they will apply for EntrePass, Employment Pass, Dependant Pass, or Permanent Residence Status. But since the government does not allow any foreign individuals or entities to self-register their business, it is a requirement to hire a registration firm that will process their application.
It is also a requirement for foreign companies and individuals to appoint a Singapore-based manager who will personally oversee the business.
Asiabizservices.com is the leading Singapore company that provides Singapore Company Incorporation services to both local and foreign entrepreneurs and investors and offer consultation regarding the immigration and taxation, accounting and book keeping requirements, and other compliance matters stated under the Singapore law. AsiaBiz has successfully helped thousands of foreign and local entrepreneurs Form a Singapore Company.
Asiabizservices Pte Ltd
120 Telok Ayer Street Singapore 068589
Phone: (65) 6242 6533
Fax: (65) 6303 2670
Singapore Company Formation Service, We provide company registration,incorporation, immigration, accounting and taxation services to entrepreneurs and businesses worldwide.
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