Sole Proprietorship

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This type of entity is suitable for small businesses that have negligible or no risks. It is owned by one person who is the decisive authority and owns all the assets and liabilities of the business.

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Sole Proprietorship

  1. 1. SOLE PROPRIETORSHIP
  2. 2. SOLE PROPRIETORSHIP This type of entity is suitable for small businesses that have negligible or no risks. It is owned by one person who is the decisive authority and owns all the assets and liabilities of the business. The business is not separate from the Owner who has unlimited liability. Therefore a Sole Proprietorship may be the simplest type but it also the riskiest business entity. Foreign individuals and companies can register a Sole proprietorship but must appoint a local resident manager. Citizens, Residents, Employment Pass holders can register a Sole Proprietorship. Advantages Disadvantages • Quick, easy and least expensive to set up. • The owner’s personal assets are at risk since • Easy to administer and manage because of the liability is passed therough to the owner, undivided authority and control. who is responsible for all debts and losses. • Less administrative duties, on going compliance • Earnings are charged at personal income tax requirements. rates and is deprived of incentives offered to • All the profits generated by the business will companies. be taxed at personal income tax level. • Lack of continuity; the business is identified • Easy to close. with the owner therefore not perpetual and it ceases with the death of owner and is not transferable by part. • Raising capital through loans from institutions Income ($) Personal Tax Rate Corporate Tax Rate or investors is difficult due to inferior image and dependency on sole owner. 20,000 0% 0% • Must renew business registration annually and 50,000 (8.5%) $4,250 0% top up CPF account. • Sole proprietors do not enjoy tax exemptions 100,000 (14%) $14,000 0% and rebates available to corporations. 200,000 (17%) $34,000 (8.5%) $8,500 Online Resources Sole Proprietorship Singapore | Sole Proprietorship vs Limited Liability Partnership vs Private Limited CompanyLast updated on 12 July 2012 Copyright © 2012 Rikvin Pte Ltd
  3. 3. Helpful Links:Company RegistrationSingapore Work VisasBusiness ServicesAccounting ServicesOffshore CompanyRIKVIN PTE LTD20 Cecil Street, #14-01, Equity Plaza, Singapore 049705Main Line : (+65) 6320 1888Fax : (+65) 6438 2436Email : info@rikvin.comWebsite : www.rikvin.comReg No 200100602KEA License No 11C3030This material has been prepared by Rikvin for the exclusiveuse of the party to whom Rikvin delivers this material.This material is for informational purposes only and hasno regard to the specific investment objectives, financialsituation or particular needs of any specific recipient.Where the source of information is obtained from thirdparties, Rikvin is not responsible for, and does not acceptany liability over the content. Copyright © 2012 Rikvin Pte Ltd

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