Persons interested to conduct a business in their own name have the legal possibility to do so by registering as a sole trader. A sole trader in Singapore is the simplest form of doing businesses, but you should know that this type of registration is not a separate legal entity and this signifies that the business owner can become personally liable for the business’ liabilities. Our law firm in Singapore can provide you with assistance if you may want to establish a sole trade on the Singaporean territory.
You can also watch the video below for more information on how to establish a sole trader in Singapore:
Characteristics of a sole trader in Singapore
According to the Singaporean legislation, any person above the age of 18 is entitled to open a sole trader. The sole trader also requires a manager, who has to be a natural person with the age of minimum 21, who is a Singaporean citizen or who has received a permanent residency in Singapore.
The sole trader must have a business address, which can also be a residential address; in order to receive the right to conduct businesses from a residential address, the owner of the sole trader should receive approval from the Housing& Development Board or from the Urban Development Authority.
An important aspect is that a sole trader in Singapore has to register after each financial year, as stipulated by the Singaporean legislation.
Registration of a sole trader in Singapore
The registration procedure is very simple and it is comprised of two actions:
•the owner must reserve the business name under which the sole trader will function;
•he then will have to register as a sole trader, a process that will take one day.
The following documents are compulsory when registering a sole trader:
•describing the main activity for which the sole trader is registered;
•providing a business address;
•a copy of a Singaporean ID card;
•the residential address of the owner;
•declaration of compliance;
The local authorities, represented by the Accounting and Corporate Regulatory Authority, will inform you when the registration process is finished; Singapore does not issue a hard copy of the registration certificate; the certificate and the registration number will be sent via e-mail.