Sole Proprietor

A sole proprietorship is a business that can be owned and controlled by an individual, a company, or a limited liability partnership. There are no partners in the business. This kind of setup is good and quick for simple trade or businesses. To set up a sole proprietorship, you must be:

• At least 18 years old
• A Singapore Citizen, Singapore Permanent Resident, or an eligible FIN holder.

The legal status of a sole proprietorship can be defined as follows:

• It is not a separate legal entity from the business owner
• The business owner has unlimited liability (i.e. the business owner is personally liable for all the debts and losses of the sole proprietorship)
• It can sue or be sued in the owner’s name
• Businesses cannot own property or any other assets in their name

If you are currently self-employed, you must top up your Medisave account with the CPF Board before you register a business, become a new owner of an existing business, or renew your business registration. After registration, the business owners are required to keep their Medisave up to date, otherwise, the business may be subjected to early cancellation.

Can Foreigners start a Sole Proprietorship in Singapore?

Foreigners who are residing overseas and want to register a sole proprietorship must appoint at least one authorized representative who is a local resident and a natural person of at least 21 years of age. The foreign owner(s) must also engage a registered filing agent to submit the application with ACRA. Foreigners who are currently residing in Singapore must seek approval from the MOM before registering a sole proprietorship. If they do not have a SingPass account, the applicants must engage the services of a registered filing agent to submit the application on their behalf.