3. TAX RATE ON COMPANY VS PERSONAL
Company will be tax at a flat rate of 17% of its chargeable
income.
Click here for basic guide in Corporate tax
Whereas all profit from sole proprietor will be tax on
personal level. The higher income earners will be pay
proportionately higher tax ( highest personal income tax
rate is 22%)
Click here for the basic guide in Personal Tax
4. COMPANY DIRECTOR TREATED AS COMPANY
EMPLOYEE
Company carry ” separate legal entity ” concept which
means that Company can stand alone in the legal eyes .
All appointed director will be treated as employee .
Whereas all the above does not applicable in Sole
proprietorship.
5. SUCCESSION PERPETUAL CONCEPT
Sole proprietor business must be cease operation if the
business owner no longer or not able to operate.
Whereas Pte Ltd business is transferable
Example : If you not intend to carry on the business, you
may just sell the company to interested parties .
Proper documentation for resignation of director and
share transfer is required to prepare and lodge in with
ACRA and IRAS .
6. RISK TAKEN LEVEL
Being owner of Pte Ltd company, liabilities level is up to
your invested fund only.
Whereas for sole proprietor owner, your liabilities is
unlimited and personal asset is touchable .
7. WITHDRAWAL MONEY METHOD FROM THE COMPANY
As director, you may getting director fees / director
remuneration.
As for sole proprietor, since you are the only owner in the
company, all the profit will be categories as your personal
income and you can withdraw it at of your preference
time .
