Simplest Form of Business in Singapore
A Sole Proprietorship is the least sophisticated type of business structure in Singapore. It is only suited for specific purposes, such as for a very small business with a single owner in an industry or sector with low risk e.g. tuition centre.
It differs from a Private Limited Company mostly because a Sole Proprietorship does not provide any protection from liability. Thus, the owner’s personal assets are not protected from any debts or other liabilities incurred by the business. Typically for an entrepreneur, setting up a private limited company is the preferred option.
Overview of Singapore Sole Proprietorship
- Not considered a separate entity from its owner
- Owner can be held personally liable for the business liabilities
- Not taxed at the entity level (taxed at owner’s personal income tax rate)