Sole-Proprietorship (SP) A Sole-Proprietorship (SP) is the simplest form of business to operate in Singapore. There are no corporate taxes and the owner only needs to contribute personal taxes. A sole-proprietorship only needs to be renewed annually and cannot be owned by a foreign individual or company unless a local resident manager is appointed. A Sole-Proprietorship is not a separate legal entity from its owner. Hence, only low risk business activities should be performed and as there is unlimited liability, the owner is exposed to full damages from losses and debts incurred during the course of business.
Benefits of a Singapore Sole-Proprietorship
- Easiest entity to register and setup
- Considered a tax resident company and eligible for tax exemptions and applicable grants
- Minimal annual compliance as compared to a Singapore Private Limited Company
- No corporate taxes, only personal taxes payable by the sole-proprietor
Registration Requirements of a Singapore Sole-Proprietorship
- At least 1 owner, can be a local company OR local or foreign individual
- At least 1 local resident manager if owner is a foreign individual
- A local registered office address (local residential addresses may be permitted, certain conditions apply)
- No paid-up capital requirement
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