Singapore Business Registration:
Sole Proprietorship / Partnership

Difference between Sole Proprietorship and Partnership

The main difference between Sole Proprietorships and Partnership are the number of owners. Sole Proprietorship is a form of business entity with only one owner, who has the decisive authority and responsibility for all assets and liabilities of the business. A partnership is a business owned by at least 2 partners. The partner can be an individual, a company or a limited liability partnership. The number of partners in a partnership can be up to 20. 

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Eligibility of Sole Proprietorship/Partnership

Singapore citizens, Permanent Residents, holders of Employment Pass or Entrepass.

Foreign Individual and companies may also register a Sole Proprietorship but must appoint a Singapore resident manager.

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Features of Sole Proprietorship/Partnership

• It is not a Separate Legal Entity

• Business owner has unlimited liabilities to bear all debts and losses of the business

• The business owner has absolute authority in running of the business

 

Benefits of Sole Proprietorship/Partnership

• Ease of setup – Quick, easy and inexpensive

• Control – easy to manage and administer 

• Lesser compliance requirements and administrations 

• Profits - profits generated by the business will belong to the sole-proprietor

• Time – Business registration can be done within an 45 minutes, subject to ACRA approval, upon receipt of all duly signed documents
   

Disadvantages of Sole Proprietorship/Partnership

• No Tax Exemption – unable to enjoy tax exemption and incentives available for private limited company

• Unlimited Liabilities - Business owner has unlimited liabilities to bear all debts and losses of the business

• Personal Income Tax - earnings are charged at personal income tax rates

• Lack Continuity – business ceases with the death of owner and is not transferable by part.

• Annual Business Renewal - must renew business registration annually

• CPF Medisave - required to contribute to CPF Medisave (individual rate between 6-8%)

• Unsuitable for high risk business

 

How to setup a Sole Proprietorship/Partnership in Singapore? 

Our service for registering sole proprietorship includes:

• Performing a Business Name check availability

• Follow up with queries and advise accordingly, if any

• Preparation of application forms

• ACRA Business profile upon successful registration

• Open a corporate bank account, if required

 

Key Requirements for business registration

Sole Proprietorship and Partnership can normally be registered within 45 minutes. Requirements of setting up a Sole Proprietorship/a Partnership are:

• Minimum of one owner

• Proposed business name

• A Singapore Registered Office address

• For foreign individuals and companies only - minimum one manager who must be a Singapore resident

• All business owners and local representative to be present at our office

• Bring along NRIC and/or passport of all owners and local representatives.

• Brief description of business activities