A single person providing services or carrying out activities can register as the owner and turn their operation into a legal business. Since the individual and the business are not separate legal persons under this business entity’s legal status, the individual is responsible for any liabilities incurred by the business. For example, under the terms of the agreements made, the owner of a sole proprietorship has unlimited liability and is responsible for all business assets if the business incurs debt or suffers losses from operating the business.
For those who are citizens of Singapore or permanent residents, the age requirement is 18 years old or higher and they should be a permanent resident or a citizen of Singapore to register a sole proprietorship.
A Sole Proprietorship can be registered by a foreigner. A FIN (Foreign Identification Number) can be obtained by foreign residents of Singapore. A person can begin a registration by logging into the system with FIN. In any case, a foreign national must get official government authorization.
For example, from the Immigration Checkpoint Authority (ICA) or the Ministry of Manpower (MOM).
A more realistic scenario would be that a foreigner is typically unable to complete the Singapore company incorporation process or do it alone. As a result, it will be necessary to seek the assistance of a reputable company and submit the registration application to the relevant Singaporean authorities.
Singapore Company Registration Process for Solopreneurs
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Select a name for your company
Like other forms of business entities, it cannot use the same name as an already registered company in Singapore. Additionally, the chosen name cannot be confusing or contain offensive language.
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Defining the business activity
Choosing a name for your company and defining the activity it will carry out usually happens at the same time.
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Selecting a business address
To register a company, you must provide an address. Under the home office scheme, a residential address may be given, but only with the permission of the authorities. If not, a physical business address must be provided.
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Singapore ID of the owner
The owner’s ID is required, and it will be documented along with the “owner’s local residential address.” A permanent resident who is a local authorized representative must be nominated for the process in the case of foreign nationals.
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Submission of the application through Bizfile+
The information must be submitted via the online government platform after it has been assembled.
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Waiting for the result
The authorities will process the application and issue a decision after receiving payment of the administrative fee associated with the process.
Things to consider before Singapore Company Registration for Solopreneurs
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Time frame
Depending on the type of business activity you will be conducting, the approval process could take anywhere from 12 days to two months.
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Tax Filing
Since a sole proprietorship is not subject to corporate taxes, it is not taxed in the same way as a corporation. Every profit made by the company’s operations is taxed as individual income profit since it is considered as such.
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Managing the operations
A foreign person who registered a sole proprietorship must obtain Ministry of Manpower approval if they intend to live in Singapore and manage the operations directly.
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Continuity and transfer
The Accounting and Corporate Regulatory Authority (ACRA) may receive a notification from a sole proprietorship requesting to dissolve the business. The business cannot survive the death of its proprietor. It is possible to transfer a sole proprietorship to a different individual by selling the company’s assets and filing the necessary ownership notifications with the appropriate authorities.
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Business account
Using a personal account is not allowed for a sole proprietorship. It must have an independent business account. Going to a financial institution and requesting the service of a corporate bank account is one way to solve this issue. Using digital accounts is a new trend. The company will benefit from a digital business account, which will also save you time and hassle from the banks.
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