Can sole proprietorship be transferred?

Can sole proprietorship be transferred to another person?

Can sole proprietorship be transferred to some else?

Can I transfer my sole proprietorship to another person?

Can I transfer my sole proprietorship to somebody else?

When the owner exits the sole proprietorship will cease the status.

However, the owner of sole proprietorship can be changed with somebody else at any time.

Please take note of the following while the owner of sole proprietorship is being replaced:

• Financial Accounts are to be made up to the date of transfer of ownership in order to declare the trade income with IRAS when he/she files personal income tax in due course.
• The owner can transfer or dispose the assets under his personal capacity to somebody else.
• For certain licences, the transfer of ownership may not be allowed hence you are required to check with the relevant authorities before changing the owner with the authority viz. ACRA.
• Eg: A Sole Proprietor who is running an Maid / Employment Agency may not be able to change the owner as the latter must be a certified person, etc as per EA Regulations set by MOM.
• Eg: A Sole Proprietor who is running a minimart can change the owner with somebody else as there is no requirement of specific certification to run a minimart.
• Eg: For a minimart: Remember to transfer the existing licences such as Tobacco, Liquor, etc and shop rental agreement and agreements with the suppliers, etc if applicable otherwise the new owner would have to obtain those licences and make new agreement accordingly.

Check first with the relevant authorities before effecting the change of owner with ACRA.