Sole Proprietorship

Complete Guide to Sole Proprietorship in Singapore

Everything you need to know about registering and operating a Sole Proprietorship in Singapore - the simplest business structure for individual entrepreneurs.

Simplest Business Structure

1-2hrs
Registration Time
$0
Min. Capital
Flexible
Owner Type
Simple
Compliance
Business Structure Overview

What is a Sole Proprietorship?

A Sole Proprietorship is the simplest form of business entity in Singapore, owned and operated by a single individual. It's an unincorporated business where the owner has unlimited personal liability for all business debts and obligations. This structure is ideal for small businesses, freelancers, and individual entrepreneurs starting their business journey.

Single Ownership

Owned and controlled by one individual or entity only

No Minimum Capital

No minimum capital requirement to start

Quick Setup

Fastest and simplest business registration process

Unlimited Liability

Owner is personally liable for all business debts

Registration Requirements

Essential requirements to register your Sole Proprietorship

Business Owner

  • Can be owned by an individual, company, or limited liability partnership
  • Individual owners must be at least 18 years old
  • Individual owners must be Singapore citizens, permanent residents, or foreigners with valid work pass
  • Cannot be an undischarged bankrupt (for individual owners)

Business Name

  • Must be unique and not identical to existing businesses
  • Cannot contain offensive or misleading words
  • Should reflect the nature of business
  • Requires ACRA approval for registration

Business Address

  • Must have a local business address in Singapore
  • Can be residential address under Home Office Scheme
  • P.O. Box addresses are not acceptable
  • Address will be reflected in public records

Business Activity

  • Must specify primary business activity (SSIC code)
  • Some activities require additional licenses
  • Cannot conduct regulated activities without proper licenses
  • Maximum of 2 business activities allowed
Pros & Cons Analysis

Benefits of Sole Proprietorship

Why choose Sole Proprietorship structure

Advantages

Easy & Fast Setup

Simplest business structure with minimal paperwork and fastest registration

Low Cost

Lowest registration and maintenance costs compared to other business structures

Full Control

Complete ownership and control over business decisions and operations

Direct Profits

All business profits belong directly to the owner

Simple Compliance

Minimal regulatory requirements and easier tax filing

Personal Relationships

Easier to build personal relationships with customers and suppliers

Considerations

Unlimited Liability

Personal assets are at risk for business debts and liabilities

Limited Resources

Dependent on owner's personal resources and capabilities

Business Continuity

Business ceases to exist if owner becomes incapacitated or dies

Limited Funding

Harder to raise capital or attract investors compared to corporations

No Legal Separation

No distinction between personal and business legal identity

Registration Process

Simple steps to register your Sole Proprietorship

1

Name Search

Check business name availability through ACRA's online portal

15 minutes
2

Prepare Documents

Gather required documents including NRIC and business details

30 minutes
3

Online Application

Submit registration application through ACRA's BizFile+ portal

30 minutes
4

Payment

Pay registration fee of SGD $15 online

5 minutes
5

Registration Complete

Receive business registration confirmation and certificate

Immediate
Ongoing Obligations

Ongoing Compliance Requirements

Stay compliant with Singapore regulations

Annual Declaration

Annual
By 30th April

File annual declaration with ACRA by 30th April each year

Income Tax Filing

Annual
By 15th April

File Form B (Individual Income Tax Return) with IRAS annually

GST Registration

As required
Within 30 days of threshold

Register for GST if annual turnover exceeds SGD $1 million

Business License Renewal

Varies
Before expiry

Renew industry-specific licenses as required

Address Update

As required
Within 14 days

Update ACRA within 14 days of any business address change

Need Help with Compliance?

Let our experts handle your ongoing compliance requirements with our tailored packages.

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Frequently Asked Questions

What is the difference between a sole proprietorship and a company?
A sole proprietorship is not a separate legal entity - the owner has unlimited personal liability. A company is a separate legal entity with limited liability protection for shareholders.

Ready to Start Your Business Journey?

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