Sole-proprietor Registration
Set up your company in 3 simple steps:
- Proposed 2 Sole Proprietorship name
- Copies of NRIC and or Passport information of business owner
- Owner’s local residential address
- Brief description of business activities (Max 2 activities)
- Registered Office address
- A compliance with declaration and statement of Non-Disqualification
Once approved, your name will be reserved for approximately 120 days (4 months). If you don’t register with ACRA within 120 days, your name will be released, and you’ll have to pay an additional $15 to reapply. If the application requires approval from another government agency, then it may have a longer processing time.
Registration can be completed in a day, provided all documents are in place and business owners have endorsed the online application in Bizfile. Processing time may be extended if approval is needed from another government agency. Upon successful registration, the owner will be notified by mail and issued a registration number (UEN). A business profile containing all the essential details of the business can be retrieved online from Bizfile.
Create a Corpass account.
Business licenses and permits specific to your sector.
Bank account opening
GST registration if turnover exceeds S$1m
Yearly renewals (One year or three years)
CPF Medisave top-up required for self-employed persons before they can renew the sole-proprietorship
Setup Requirement
One owner (Only individual)
A Singapore registered office address
For foreign individuals only: minimum one resident authorised representative who must be a Singapore resident
No separate legal entity and cannot own property in a business name.
More straightforward to set up and terminate
An individual can be a Singapore citizen, a permanent resident or an eligible FIN holder.
Unlimited liability
Owner personally liable for debts/losses of business
Can own property in individual name
A resident authorised representative can be a Singapore citizen, permanent resident, or holder of an Entrepass/Employment Pass.
Self-employed individuals must top up their Medisave account with the CPF Board before registering/renewing their business.
Foreigners who wish to present in Singapore to manage the operation must seek approval from the Minister of Manpower after registration.
Cancellation of business registration by the owner or the Registrar can occur if there is no renewal or if the business is deemed to be defunct.
Raising capital is challenging.
Personal income tax rate
Lacks Perpetuity (Annual or 3-year renewal)
Minimal post-registration compliance
If you plan to conduct a small-scale business from your home, you may use your residential address as a business address under the Home Office Scheme. You can apply Home Office Scheme approval (HDB/URA) before business registration with ACRA.
FAQ
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How much share capital do I need?
There is a low cost to start up a company in Singapore, as low as S$1. You can inject more funds into the business later on, and shares can be issued without receiving money from shareholders. This is legalised and make sure the amount is paid.
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Do I need a company address?
Yes, all Singapore companies require a local registered address, which cannot be a P.O. Box. The purpose is to enable members of the public to contact the office if necessary or facilitate the delivery of any legal documents.
If you don’t have an office address in Singapore, you can use a virtual office address or use B6 service for your office address registration.
If you run a small-scale business from your home, you may use your residential address as the office address under the Home Office Scheme. You must get approval under the Home Office Scheme before submitting your application to incorporate your company.
Approval from Housing Development Board for HDB flat and Urban Redevelopment Authority (for private residential properties) -
When should I set my financial year end to maximise tax savings?
Newly incorporated company to have their 1st Financial year end as close to 12 months as possible in order to take advantage of the tax break for first three consecutives YAs to maximise the coverage of the tax exemption for new startup company
As IRAS will count financial periods longer than 12 months as two YAs for tax exmption reason. -
Can foreigner open a company in Singapore?
Yes, foreigners can register a company and own 100% shareholding
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What is corporate shareholder and I need one?
A corporate shareholder is a business entity that holds shares in another limited company. This designation encompasses various entities, including another limited company, a limited liability partnership (LLP), or a non-profit organisation or charity.