Having one owner is a salient characteristic of a Sole Proprietorship. Being the sole proprietor, he exercises the full control and authority in managing the assets, profit, liabilities and financial losses. This kind of business structure is the most convenient structure to register as well as the most uncomplicated form of business structure. Also referred by many as Single Proprietorship, a business of Sole Proprietorship nature is given merits in any nation it is registered.
There a lot of entrepreneurs from all over the world flocking to Singapore to explore and seek business opportunities and development. Though embarking on an offshore business undertaking seems to be a tremendous concept, registering a Singapore Sole Proprietorship is not a daunting process, however.
In Singapore, a Sole Proprietorship business is regarded as a non-legal entity, and thus, it cannot be sued nor can it principally participate in any lawsuit. All properties and assets procured throughout the existence of the business cannot be owned by the firm itself. Instead, the ownership belongs to the proprietor.
At any rate, the Accounting and Corporate Regulatory Authority or ACRA stipulated the following characteristics of a Singapore Sole Proprietorship:
* Anyone of legal age can register for a Sole Proprietorship provided that one doesn’t have experience of un-discharged bankruptcies.
* Upon registration, the local address of the Sole Proprietorship must be provided. The residential address is allowed to be used as a business address as long as a written consent from the Housing and Development Board or Urban Redevelopment Authority is made. The scheme of using residential address as business is known as Home Office Scheme.
* The head of the Singapore Sole Proprietorship enterprise is the manager who is at least 21 years old during appointment and also a Permanent Resident or someone who holds a natural citizenship. The company owner is also allowed to be the manager of the firm as long as he holds a Singaporean Permanent Residence or is Singaporean citizen.
If for some reasons the company owner or individuals who do not have ordinary residence in Singapore wish to act as a local manager of a Singapore Sole Proprietorship enterprise, supplying Employment Pass, Entrepass, and Dependent Pass is sufficient for him to be eligible.
The profits earned by Sole Proprietorship enterprises in Singapore are considered as income of the proprietor and hence, are subject to a tax rate at a personal income level. However, since they are taxed as personal income, the proprietors are not obliged to file their annual returns with ACRA nor are they required to have an audit.
As part of business operations, companies use materials such as Letterheads, Invoices, and Bills. In Singapore, it is mandatory that these materials must bear the registration number along with the business name.
Doing business in Singapore is a promising endeavor. It is not a wonder, therefore, why it maintains its renowned reputation among entrepreneurs for many years.
Since 1998, Rikvin consultancy has been providing highly professional company incorporation services, both in attractive standard packages as well as customised services. Online incorporation being a hallmark service, other services of Rikvin include Singapore Sole Proprietor, Singapore Company Offshore Incorporation, EntrePass, Singapore Employment Pass, Personalised work Pass application, GST Registration, Accounting Services, Tax Planning & Consulting, and Business Plan Drafting.