A Singapore sole proprietorship is the simplest enterprise structure with only one owner who can relish full command and authority when it arrives to managing his enterprise. But despite such benefit, he should understand that he is exactly responsible for all the assets, liabilities, and acts of enterprise which is treated as his lawful elongation.
Meantime, foreign persons can register a sole proprietorship in Singapore as long as they will assign a local inhabitant supervisor who may be a natural citizen or a foreigner who retains EntrePass or Employment Pass. Below are the major characteristics of a sole proprietorship, according to the Singapore Company Registrar (Accounting and Corporate Regulatory Authority or ACRA):
– The proprietor has unlimited liability which means that he is directly liable for the actions, economic deficiency, debts, lawsuits, and claims associated to his enterprise.
– The business is not considered as a distinct lawful entity from its proprietor.
– It will not own a house, purchase provision, or document a lawsuit under its title.
– The enterprise is required to renew its permit every year to the Singapore Company Registrar.
On the other hand, here are the key benefits of this Singapore business setup:
– The owner is not subjected to perplexing obligations and in writing documentations.
– The owner enjoys flexibility when it arrives to making decisions since he is the only one who has the right to do so.
– Since a sole proprietorship is levied at an individual income rate, there is no need to document the annual returns.
– As the sole proprietor, an individual can deal or move his enterprise to anyone if he wants to.
– All the developed profits of the enterprise belong to the sole proprietor.
While there are prominent benefits in having a sole proprietorship in Singapore, entrepreneurs should also consider some of its drawbacks including:
– The proprietor does not enjoy limited liability, and as an outcome, his personal assets can be settled to pay off for the liabilities of his enterprise.
– In case of bankruptcy, the creditors can directly blame the sole proprietor for all the acquired debts.
– Being the only proprietor, it may be trickier for a person to lift funds, conclude for enterprise strategies, and hold the entire operation.
– The enterprise does not enjoy perpetual reality.
In case of death or disability of the proprietor, the life of his enterprise may arrive to an end.
Since 1998, Rikvin consultancy has been providing highly professional Singapore Sole Proprietorship, both in attractive standard packages as well as customised services. Online incorporation being a hallmark service, other services of Rikvin include Singapore Sole Proprietor Setup, Singapore Subsidiary Registration, Offshore Incorporation, EntrePass, Singapore Employment Pass, Personalised work Pass application, GST Registration, Company Incorporation, Tax Planning & Consulting, and Business Plan Drafting.