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Type of Business Entities: Sole-Proprietorship in Singapore
Advantages
Disadvantages
A sole-proprietorship is a business firm owned by one person or one locally incorporated company. There are no partners. The sole-proprietor has absolute say in the running of the business firm. Management rests on that one person and his liability is unlimited. It is an easy procedure to register a sole-proprietorship. There is no requirement for a sole-trader to maintain accounts for auditing purposes. For tax purposes, a balance sheet or statement of affairs as at the end of the year and a detailed profit and loss account must be submitted to the tax authorities. If such a business fails or is declared bankrupt, the creditors can sue the proprietor for all debts incurred. A legal claim can be made against the personal assets of the proprietor. One of the advantages of this form of business is that there are fewer formalities in terms of its formation and registration. What are the different types of Business Entity in Singapore?
Establishing a Foreign Branch Office in Singapore
Foreign companies may set up branches in Singapore, but for tax reasons most prefer to set up a subsidiary. The Companies Act governs the procedures for acquiring or establishing a company, branch or subsidiary. |
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