Sole Proprietorship has always been the easiest business entity one can own. This business entails minimal capital and bureaucracies. Singapore just like any other country requires one to register Sole Proprietorship. The registration process helps in determining whether the business entity is legal or not. It also gives a sole proprietor the rights to run his/her business in Singapore.
Requirements of Sole Proprietor
There are some important registration requirements an aspiring sole proprietor needs to meet.
- Be at least 18 years of age. Be a company registered in Singapore
- Be a Singaporean citizen. Non-citizens can also apply as long as they are 18 years and above
- If you are a local manager, you need to be 21 years and above to qualify for registration
- Have a proposed business entity name
- Have a local business address
Every aspiring sole proprietor in Singapore should meet those requirements. The requirements just make the registration process to move on smoothly. There are other factors that need to be put into consideration also. The factors include the following:
- Business name - The name of your business should have been approved first by ACRA. This comes prior to registering your business. The business can be rejected on the following grounds; identical to an existing company, similar to well-known trademarks and undesirable.
- Managers - Manager appointment for this kind of business is limited to only foreign individuals and companies. The manager ought to be a resident of Singapore.
- Address - The business you are about to register should have a valid registered address. You can use residential addresses is accepted for certain businesses.
- Bank Account - After registering your own business entity, you can now open a bank account. Consider opening the business bank account in either a local or even an international bank.
Post Registration Compliance and Considerations
Once you have registered your sole proprietorship, it does not end there. There are other post-registration considerations you need to take care of. The considerations below are very important in ensuring you comply with all the rules and regulations that govern sole proprietorships in Singapore:
- Singapore GST (Goods and Services Tax Registration) - You will have to incur tax on supplied and imported goods and services in Singapore. Exported goods and services are exempted from tax.
- Custom Registration - If your business involves trans-shipment, export, and import you have a responsibility to register with Singapore Customs. You will get a CR (Central Registration) Number.
- Registration Number - You have to input your Registration number on all your invoices, billings, letterheads, and other related documents. It is normally provided by ACRA.
- Licenses and Permits - Once you have registered your business, that does not mean you can just take part in any business activities. Some business undertakings need you to obtain the relevant license or permit.
- Registered Office Hours - There are acceptable office hours that your business is expected to be open. The business is expected to be open for at least three hours daily on weekdays.
Features of a Sole Proprietorship in Singapore
A sole proprietorship is distinct from other types of business. Most people just know that is simple to start this business. People will hurriedly decide to register a sole proprietorship business without even putting into consideration some of the important features. The features include the following:
- It is not a separate business legal entity
- Ability to own property
- The sole proprietor is liable for losses and debts
- You can not only sue but also sued in your own name
- The sole proprietor has unlimited liability
Factors to Consider before Starting a Sole Proprietorship
- Taxation - You have to know the taxes incurred by sole proprietorship in Singapore. This is something that will enable you to start and run your business easily and comply with all taxation responsibilities.
- Personal Liability - As a sole proprietor, you will have to bear all the losses and debts that emanate from this business. You have to be ready for that.
- Capital - Make sure you have enough capital to help you venture into this business. The capital should assist you to get the goods or services you intend to sell.
Sole proprietorship in Singapore is growing at a very high rate. People are generating more income by simply starting their own business entity. Before you get into this venture you need to know how to register sole proprietorship in Singapore. The tips discussed above will be of much help to you.