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Epica FAQ Series

What are the pros and cons of having a sole proprietorship?

Business Entities

What are the pros and cons of having a sole proprietorship?

There are several pros and cons to every business entity. Let us discuss them.

Pros:

  • The sole proprietorship is the easiest business entity to form.
  • You would not have to file any audited accounts or file annual returns with the Accounting and Corporate Regulatory Authority (ACRA).
  • It is most suitable for a small business owner as it only involves a single owner.
  • Profits are treated as income, so they are taxed at the personal income tax rate.
  • You can quickly close or wind up your business.
  • Foreigners can also apply for sole- proprietorship in Singapore; however, they have to appoint a representative who is a Singaporean resident.

Cons:

  • The Sole owner is entirely liable for his business and needs to bear all the debts and losses solely.
  • He may face limited choices in getting funds from banks.
  • He is also restricted from selling stocks of his business to investors to raise funds.

Foreigner Package

New Company Setup

S$2,600
S$4,000

Local Package

New Company Setup

S$1,100
S$1,700

Transfer Package

Existing Company

S$1,000
S$1,500

Singapore Branch

New Branch Setup

S$4,000
S$5,000

Representative Office

New Setup

S$2,500
S$3,000

BVI Company

Singapore Bank Account

US$2,200
US$3,000

Accreditations and Partners

  • ACRA
  • ISCA
  • MOM
  • IRAS
  • AWS
  • XERO
  • STRIPE
  • DOCUSIGN
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