One of the types of business entities that you can incorporate your company in Singapore is a sole proprietorship, and it is important to understand the steps and requirements for the company incorporation or formation.
A sole proprietorship is a business that can be legally owned by a person without any partners to work with.
According to the Business Registration Act, Cap. 32 of Singapore, a sole proprietorship can engage in any kind of trade, commerce, craftsmanship, and other activities that has aims of monetary gains.
Now, without wasting any more time, let's take a look into what's all this sole proprietorship business is about.
Sole Proprietorship Characteristics
– A sole proprietorship in Singapore means a business that is owned by a person.
– It is the type of business entity that poses less hassle since you only have yourself to worry about.
– Also, you will have full ownership of your business so that you can be free to make all the necessary calls that are important.
– However, this also means that you are going to be responsible fully for all the losses and debts that the business has.
Sole Proprietorship Advantage
The advantage of starting a sole proprietorship in Singapore is that it's economical, simple, and faster in general compared to other types of business entities. It is easier to manage since you only have yourself to run the business.
Also, a sole proprietorship is easier to close down since there's only a light compliance requirement for this business entity.
Disadvantages of a Sole Proprietorship
– Other than its advantages and positive things, this kind of business entity also has some drawbacks to it.
– One of the biggest disadvantages of a sole proprietorship is, as briefly explained before, that you are putting your own personal assets into running the business this making you liable for all the debts and losses.
– You are the only funder of the business and it can be a little hard to start without shareholders.
So, you need to rely more on loans and investments from other people to help you out with the funding.
Documents for Sole Proprietorship Registration
If you are very sure that you are going to start a sole proprietorship business entity in Singapore, then you have to go through all the company incorporation procedures.
For this, you must prepare some documents to be submitted. Everything, of course, must be in English.
First, you need the activity details of your business. Next, you must show them your ID and personal address. Also, don't forget to show a declaration of compliance and Statement of Non-Disqualification for the company incorporation process.
Don't worry, the company incorporation process won't take long. In fact, it is very simple and quick in Singapore that you don't have to worry about a thing. Sometimes, some people are asked for extra documents. If that happens to you, don't worry. This is not necessarily a bad sign. Just make sure that you comply with all the required documents so that the registration process of your sole proprietorship can go on smoothly.
If you are looking for company incorporation in Singapore, visit https://www.a1corp.com.sg/singapore-company-formation
Reference:
A1corp – (Singapore Company incorporation consultant)
