Nowadays, numerous start-ups and home-based businesses are on the rise due to which people are now planning to pursue their own business. However, a sole proprietorship is one of the best options for you if you want to start your own business seriously and take it to the next level.
What is a sole proprietorship?
You will be considered as a sole proprietor when you are only the owner of your business and still you have to form a business entity.
In simple words, a sole proprietorship is a business that is owned solely by one person and is known to have a very basic structure, making it easy for you to establish.
However, a sole proprietorship is a perfect option for you if you wish to start your own small-scale business that does not need staffing.
Incredible Benefits of a sole proprietorship
- Full control: Since you will be the only owner of your business so get ready to take your own business decision. Right from the operations to finances decision, you will have the entire control of decision making.
No third party is going to involve in your decision making because you will run the business on your own terms and conditions.
- Easy and inexpensive: If you are looking for the business structure which is easy to set up and maintain then a sole proprietorship is a one-stop solution for you.
When compared to private entities and other corporations, the start-up cost of a sole proprietorship business is quite low because you need to spend money only on acquiring important licenses and permits.
- Ease of termination: When compared to other businesses, the process of terminating the sole proprietorship business is quite simple, inexpensive, and also less time-consuming.
- Zero profit sharing: There is no need for profit sharing when going for a sole proprietorship business because there is no requirement of staff hiring for business setup.
You are eligible for all the income which is generated from your operations as a sole business owner.
Who has the right for setting up a sole proprietorship?
In Singapore, to set up a sole proprietorship you need to be at least 18 years along with citizenship of Singapore, permanent resident, or an EntrePass holder.
On the other hand, there are some limitations for the expatriates and other employment pass holders for setting up a sole proprietorship in Singapore. Before registering and the requirement to appoint a Singapore resident as the business manager to register for this business model, they must first get approval from the Ministry of Manpower (MOM).
Therefore, the process is quite time-taking & difficult due to which foreigners should incorporate a private limited company instead of a sole proprietorship.
How to become a sole proprietor?
You need to first register online, to start a sole proprietorship business in Singapore. There are a few important documents work that you need to complete successfully.
Once, you fulfill all the above points, you are ready to start your business as a sole proprietor.