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.
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
Such set up 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 EntrePass Holder
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.
Foreigners who are residing overseas and want to register a sole proprietorship must appoint at least one locally resident authorised representative. 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.