Sole Proprietorship
Partnerships
What is a Sole Proprietorship?
A Sole Proprietorship is run by only one business owner.
Characteristics:
The business and its owner are considered a single legal entity;
The owner has unlimited liability and is personally liable for the business’ debts and any other legal action taken against the business; and
The sole proprietorship will be taxed based on personal income tax rate.
Yearly renewals (one year or three years). CPF Medisave Top-Up required for Self-employed Persons before they can renew sole-proprietorship.
What is a Partnership?
A partnership is run by a minimum of 2 partners, and a maximum of 20 partners.
The differences in the 3 types of partnerships are as follows:
General Partnership
Between 2 and 20 partners.
Not a separate legal entity.
Partners have unlimited liability.
Can sue or be sued in firm’s name.
Cannot own property in firm’s name.
Partners personally liable for partnership’s debts and losses incurred by other partners.
Profits taxed at partners’ personal income tax rates
Exists subject to partnership agreement.
Yearly renewals (one year or three years).
CPF Medisave Top-Up required for Self-employed Persons before they can renew partnership.
Limited Partnership (LP)
At least 2 partners; one general partner and one limited partner. No maximum limit.
Not a separate legal entity.
General partner has unlimited liability, limited partner has limited liability.
Can probably sue or be sued in firm’s name.
Cannot own property in firm’s name.
General partner personally liable for debts and losses of the LP. Limited partner not personally liable for the debts or obligations of LP beyond amount of his agreed contribution.
Profits taxed at partners' personal income tax rates.
Exists subject to partnership agreement.
Yearly renewals (one year or three years).
CPF Medisave Top-Up required for Self-employed Persons before they can renew LP.
Limited Liability Partnership (LLP)
At least 2 partners, no maximum limit.
A separate legal entity from its partners.
Partners have limited liability.
Can sue or be sued in LLP’s name.
Can own property in LLP’s name.
Partners personally liable for debts and losses resulting from their own wrongful actions. Partners not personally liable for debts and losses of LLP incurred by other partners.
Profits taxed at partners’ personal income tax rates.
The LLP has perpetual succession until wound up or struck off.
Annual declaration of solvency/insolvency must be lodged by one of the managers stating whether the LLP is able or not able to pay its debts during the normal course of business.
Documents and information required
Sole Proprietorship General Partnership:
Proposed business name
Description of principal activities
Local business address for the proposed business
Copy of owner's Singapore ID
Local residential address of sole proprietor
Declaration of compliance and Statement of Non Disqualification
Limited Partnership (LP):
Proposed business name
Local business address for the proposed business
Minimum 1 general partner + 1 limited partner
Foreign individuals or companies setting up Limited Partnership must apply for EntrePass, or appoint local manager
Limited Liability Partnership (LLP):
Proposed LLP name
Particulars of the LLP partners/managers as per the foreign passport or Singapore identity card
Residential address of the LLP partners/managers
Declaration of compliance
Details of the registered address for the LLP
Consent to Act as Manager and Statement of Non Disqualification to Act as Manager
In case the partner is a company: Registration details of the company such as registration number, jurisdiction, registered address, etc.
How we will assist you
We will guide you step-by-step on the information required, prepare all the necessary documentations and make the applications on your behalf. We seek to make the process of the greatest convenience to you and most importantly, to give you the peace of mind that your business registration is handled by professionals.
Our Fees
$400
Inclusive of registration fees payable to ACRA.