Step by Step Guide on starting a business in Singapore - Jorbb shows you how

How to setup a business as a sole proprietor

As a result of globalization, the government of Singapore is offering many opportunities for starting a business at ease. You can become a sole proprietor of your business provided you know the procedures and steps involved in the start up stages. Sole proprietorship is the most simple and flexible business structure that has only one owner. Profits from this business are liable for tax at personal income tax rates.

1. Almost anybody can register with Singapore government for opening a company as a sole proprietor. Generally there are no restrictions for anyone to become a sole proprietor of a company. There are certain exceptions and these exceptions address those people who are not logically eligible for starting a business. Anybody who has an undischarged bankruptcy cannot apply as a sole proprietor.

2. The next step involves the appointment of a local manager who has a local address. This is essential for non Singaporeans for starting a business. The local manager that you appoint for your business should have completed 21 years of age at the time of application. The local manager that you appoint should be either a Singapore citizen or a Permanent resident of Singapore or a person holding employment pass or a person holding a dependent pass. If the person you are appointing satisfies any of the above criteria, then he or she will be approved as a local manager.

3. All businesses that are opened by a sole proprietor should be approved by ACRA. This requires further additional steps for completing the registration process.

4. A SSIC code is essential for any business in Singapore. This code identifies your business based on the business activity. You can search for this code in the official website.

5. Then you have to choose your place of business. This information has to be provided while you apply for the registration. Then you need to top up your medisave so that all your liabilities are settled down.

6. The next step is crucial requiring approval of the Singpass. You need to get this pass for your company if you want to open a business as a sole proprietor. This is a password that enables transactions with the government offices.

7. The registration can also be done online using the BizFile. After downloading the file, you have to login using your Singpass. There you have to pay the registration fee which includes the fee for your business name and for your business registration. As you are a sole proprietor, you have to pay $65 ($15 for business name + $50 for business).

8. Now for the online registration, you can self register as you are the sole owner. You can also get the required help from legal firms to complete the process.

9. If your business name is not approved, you have to reapply with a new name. If the business requires further approval from other government authorities, your application will be moved to them automatically. For any clarifications, you will be contacted and the business will be approved in about 15 days.

Source ACRA and Business.gov.sg

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