Asiabiz Highlights the Advantages of Singapore Sole Proprietorship
In Singapore, where business is the easiest undertaking, 100% foreign ownership of company shares is permitted.
by Ashley Varghese Monday, November 29, 2010
Being a Permanent resident entitles that person certain privileges and benefits. In terms of establishing a business, for example, Permanent Residents can be appointed as the Local Manager in a sole proprietorship enterprise, a business structure considered as the simplest and easiest to register and dissolve.
According to Asiabiz, a private limited company committed to assist entrepreneurs establish a business and or settle in Singapore by relocation, a sole proprietorship business is an enterprise owned by one person or company that exercises and maintains full authority. It does not require partners.
Under the Business Registration Act, foreigners who intend to register a sole-proprietorship business in Singapore should appoint a Local Manager while they continue to hold residence outside Singapore.
“To be a Local Manager, the person must be a Singaporean resident, Permanent resident, or a holder of either an Entrepreneur Pass, or Employment Pass or even a Dependent Pass,” says Asiabiz.
In Singapore, where business is the easiest undertaking, 100% foreign ownership of company shares is permitted. The same principle applies to a sole proprietorship business.
“During decision-making and choosing a management approach, the sole proprietor does not have to await an approval from another individual,” Asiabiz adds, “the sole owner reserves the discretion on what to do with the business earnings, how to expand the business, and whether to continue running it, transfer it to an heir, or dispose it to another.”
There are also no specific business taxes levied upon the company as the tax is imposed once and which is based on the personal income accumulated by the proprietor from such business.
“That principle works to a proprietor’s advantage because double taxation is not imposed upon the business,” continues Asiabiz, pointing out the difference from a corporate entity, which according to the business solution provider is “subject to taxation twice—from the personal level of shareholders and or directors and from the corporate level as among the inevitable consequences of having a legal status distinct from its owners.”
A Singapore sole proprietorship is not treated as a legal entity. Hence, it cannot pursue legal actions such as filing a lawsuit. Nor can it be sued against. A sole proprietorship’s capital can be imported. Its earnings can be repatriated, but it can never acquire assets by its name. Rather, the proprietor can own assets, take full control over the business’ earnings and losses. Should the foreign sole proprietor decide to have relocation, an Employment or Entrepreneur Pass is necessary.
About the Publisher:
For many years, Asiabizservices has served the community by taking charge of Singapore company incorporation, processing the necessary working visas of entrepreneurs or employees, and providing services such as accounting, secretarial and statutory compliance with certain requirements.
AsiaBiz is a company that provides Singapore company registrar services to local and foreign entrepreneurs and investors and offer consultation regarding the immigration and taxation law, Singapore accounting services, book keeping requirements, and other compliance matters stated under the Singapore law.
For more information:
address: 120 Telok Ayer Street Singapore 068589
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