REGISTRATION OF BUSINESS

CORPORATE SERVICES IN SINGAPORE
Profits taxed at owners’ / partners’ personal income tax rates Owner personally liable for debts and losses of business Partners personally liable for partnership’s debts and losses incurred by other partners General partner is personally liable for debts and losses. Limited Partner not personally liable for the debts or obligations of LP beyond amount of his agreed contribution.

Sole Proprietorship Partnership Limited Partnerships
Definition A business owned by a single person Partnership or association of 2 or more persons carrying on a business with a common view to profit. A partnership consisting of two or more persons, with at least one genral partner and one limited partner
Owned By One Person An association between 2 and 20 partners. A partnership of more than 20 partners must be incorporated as a Company under the Companies Act, Chapter 50. At least 2 partners; one general partner and one limited partner. No maximum limit.
Legal Status Not a separate legal entity
Cannot sue or be sued in the business name
Cannot own property
Owner personally liable for debts and losses of business Partners personally liable for partnership’s debts and losses incurred by other partners General partner is personally liable for debts and losses. Limited Partner not personally liable for the debts or obligations of LP beyond amount of his agreed contribution.
Formation Requirements Age 18 years or above
Singapore Citizen/ Singapore Permanent Resident
If owner(s) not resident in Singapore, they must appoint a local manager who is resident in Singapore
Self-employed persons must top-up their account with the CPF Board before they register a new business name and become the registrant of an existing business name, or renew their business registration
Un-discharged bankrupts may not be allowed to register.
At least 1 general partner and limited partner. Both can be individuals (at least 18 years old) or body corporate (company or LLP)
At least 1 manager who is an “ordinarily resident” in Singapore (at least 18 years old) if all the general partners are not “ordinarily resident” in Singapore.
Formalities and Expenses The formation is quick and easy to set-up
Easy to administer and manage
Registration cost is minimal
Less administrative duties to adhere to
Must renew registration annually.
Taxes Profits taxed at owners’ / partners’ personal income tax rates
Continuity and Transferability Can exist as long as the owner is alive and desires to continue the business Existence – subject to partnership agreement
If a partner dies or leaves the partnership, usually the partnership dissolves and the assets of the partnership must be sold or distributed to pay the creditors of the partnerships first and then • the partners
The partnership agreement may provide for the continuation of the business
Exists – as long as there is one general partner and one limited partner
If there is no limited partner, the partnership will be suspended and will be converted to a firm registered under the Business Registration Act.
Once a new limited partner is appointed, the registration of the LP will be restored to “live”.
Closing a Business By owner, termination or cessation of business
By Registrar – if the registration has expired and has not been renewed
By general partner, cessation of LP
By Registrar – if the registration has expired and not been renewed

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Registration of Sole Proprietorship/Partnership/Limited Partnerships:

• Name check –availability of the proposed name
• Preparation of application forms
• Provide basic advisory on business entity enquiries (if any)
• ACRA Business Profile after successful registration

Documents Needed – Process Involved

• Bring your NRIC and/or Passport of all business owners and manager
• Details required (a) Proposed Business Name; (b) Description of your business activities and (c) Registered Office Address for your Business;
• Upon receiving payment, a file is prepared and process of filing the business registration on your behalf is initiated. Once the business has been successfully registered, you may open a corporate bank account.