A guide on why & how to go for a Sole Proprietorship in Singapore | Bestar

1
(No Transcript)
2
A guide on why how to go for a Sole
Proprietorship in Singapore
Bestar Services Pte. Ltd
3
A guide on why how to go for a Sole
Proprietorship in Singapore
Tax Planning While Being In Singapore

• Many individuals dont want to work in a
  partnership neither they want to work for some
  company. Sole Proprietorship allows such
  individuals to have complete access to their
  business from all ends.
• If you are looking to start a Sole Proprietorship
  in Singapore, then ask yourself the below basic
  questions
• Are you looking to take Sole control
  responsibility of the business or do you want to
  share with someone in the form of a partnership?
• Are you ready to bear the entire risk of the
  business?
• How much capital do you have to invest depending
  on the business type you want to go for?
• Do you want to run your business for a short-term
  or long-term period?

4
A guide on why how to go for a Sole
Proprietorship in Singapore
Tax Planning While Being In Singapore
What is a Sole Proprietorship in Singapore?

• In Sole Proprietorship, an individual will be
  investing the entire capital for setting up the
  business, procuring managing all the assets,
  solely responsible for the future growth of the
  business, and having a complete share over all
  the benefits, gains, and profits of the business.
• With a complete share of gains, sole
  proprietorship also comes with the risk of
  losses. If an individual is looking to enjoy a
  complete share of gains, they should bear the
  risk of losses too, which the personal capital of
  the individual might cover.
• In Sole Proprietorship, an individual has to pay
  personal income tax and has to bear entire
  accountability liability for any lawful
  misconduct.

5
A guide on why how to go for a Sole
Proprietorship in Singapore
Tax Planning While Being In Singapore
What is the legal status of a Sole Proprietorship
in Singapore?

• The legal status of a Sole Proprietorship in
  Singapore is
• An individual (business owner) has unlimited
  liability, unlike a partnership or a limited
  company, where you will have limited liability.
• A Sole Proprietorship is not a separate legal
  entity from its business owner, unlike a limited
  company, which is a separate legal entity.
• In case of unlawful practice, Sole Proprietorship
  can sue or can be sued under the individual
  (business owners) name.

6
A guide on why how to go for a Sole
Proprietorship in Singapore
Tax Planning While Being In Singapore
Who is eligible for setting up a Sole
Proprietorship in Singapore?

• An individual needs to fulfill below
  requirements
• Must be a legal citizen of Singapore and at least
  18 years of age
• Should be a Permanent Resident of Singapore
  (Residential address of Singapore)
• Must be an EntrePass Holder

7
A guide on why how to go for a Sole
Proprietorship in Singapore
Tax Planning While Being In Singapore
What are the advantages of a Sole Proprietorship
in Singapore?
1. Straightforward Affordable

• Compared to other legal entities, a Sole
  Proprietorship is the simplest, most
  cost-effective most affordable business
  structure in terms of set-up costs. It requires
  less paperwork than other entities and you must
  undergo major formalities to set it up in
  Singapore.

8
A guide on why how to go for a Sole
Proprietorship in Singapore
Tax Planning While Being In Singapore
2. Complete control over gains

• An individual has the luxury of enjoying all
  gains, benefits profits of the business without
  sharing them with another person.

3. Operating Flexibility

• An individual can change the structure of the
  business quickly whenever the need arises to
  support the business requirements and meet the
  business goals without impacting the cost or
  process of the business.

9
A guide on why how to go for a Sole
Proprietorship in Singapore
Tax Planning While Being In Singapore
4. Complete Authority

• An individual has complete authority autonomy
  in the decision-making of the business affairs
  of the business.
• Having full power authority ensures that there
  is no conflict of interest or biasedness of
  another person in the decision-making.
• An individual can make quick decisions to boost
  future growth and meet the short-term goals of
  the business.

10
A guide on why how to go for a Sole
Proprietorship in Singapore
Tax Planning While Being In Singapore
5. Ease of termination

• Terminating a sole proprietorship requires less
  time, is inexpensive, and requires less effort
  than other business entities.
• In Singapore, you need to notify the government
  that your business has winded up operations and
  undergo a series of procedures to terminate the
  sole proprietorship business.

11
A guide on why how to go for a Sole
Proprietorship in Singapore
Tax Planning While Being In Singapore
How to register a Sole Proprietorship in
Singapore?
1. Registering a company name

• To start a Sole Proprietorship in Singapore, you
  have to first select register your business
  name adhering to below guidelines
• Once you have decided on the name, register it on
  Biz Singapore for a 15 fee.

• The name must not be objectionable or derogatory
• The name must not be the same or similar to that
  of a registered business
• Another business entity should not have reserved
  the name
• Make sure the Ministry of Finance does not
  prohibit the name

12
A guide on why how to go for a Sole
Proprietorship in Singapore
Tax Planning While Being In Singapore
2. Registering your business address

• Once your business name is approved, you must
  register within 120 days and incorporate your
  business with a 100 registration fee.
• You need to inform ACRA regarding your business
  primary address.
• You will need to submit below documents

• Local Business Address
• Photocopy of the business owners (sole
  proprietor) identity card
• Singapore Residential Address of the business
  owner
• A description of your business activities

• Once you pay the 100 registration fee along with
  the above documents, it takes 15 minutes for your
  application to get approved unless the approval
  needs to be approved by a top-level government
  agent in scenarios of a special case.

13
A guide on why how to go for a Sole
Proprietorship in Singapore
Tax Planning While Being In Singapore
3. Opening the bank account of your business

• Once your Sole Proprietorship is registered, the
  next step is to open a bank account for your
  business.
• It is advisable to keep your business personal
  account different for conducting transactions.
  Keeping a separate bank account solely for
  business transactions ensures transparency in
  financial transactions books of accounts.

14
A guide on why how to go for a Sole
Proprietorship in Singapore
Tax Planning While Being In Singapore
Conclusion

• At Bestar, we help new entrepreneurs register
  their business in Singapore. We provide all
  assistance from starting the business in
  Singapore till incorporation of the business and
  even in consultation for tax advisory
  compliance.
• We are one of the leading Incorporation
  Accounting Consultants in Singapore.
• Contact us today to start register your
  business in Singapore or any other consulting
  services. You can reach out to us via call at 65
  62994730 or email at admin_at_bestar.asia.

15
Follow us