Question 1

Singapore Sole Proprietorship vs Partnership?

Achibiz · Accepted Answer

Comparison of Singapore Sole Proprietorship vs Partnership

Click here to view the comparison of Singapore Entities & Firms (In PDF).

Click here to view the Advantages & Disadvantages / Pros & Cons of all types of Entities & Firms in Singapore. (In PDF)

*Features*	Sole-Proprietorship	Partnership (General)
*Introduction*	A basic & simple form of starting the business vehicle	A basic form of business vehicle with two or more co-partners
*Suitability of Business Vehicle*	Suitable for a small scale business with low risks	Suitable for a small to medium size of business journey with co-partners
*Definition*	A business owned by one person	An association of two or more persons carrying on business in common with a view to profit
*Ownership or Owners*	Only one person	Between 2 and 20 partners. A partnership of more than 20 partners must incorporate as a company under the Companies Act, Chapter 50 (except for professional partnerships)
*Legal Identity or Status*	Not a separate legal entity Owner has unlimited liability Can sue or be sued in individual’s own name Can also be sued in business name Can own property in individual’s name Owner personally liable for debts and losses of business	Not a separate legal entity Partners have unlimited liability Can sue or be sued in firm’s name Cannot own property in firm’s name Partners personally liable for partnership’s debts and losses incurred by other partners
*Requirements For Registration or Formation or Incorporation*	Age 18 years or above. Singapore citizen / Singapore Permanent Resident / EntrePass holder. If owner not resident in Singapore, he must appoint an authorized representative who is ordinarily resident in Singapore. Self-employed persons must top up their Medisave account with the CPF Board before they register a new business name, become a registrant of an existing business name, or renew their business name registration. Undischarged bankrupts cannot manage the business without approval from the Court or the Official Assignee.	Age 18 years or above. Singapore citizen / Singapore Permanent Resident / EntrePass holder. If owner not resident in Singapore, he must appoint an authorized representative who is ordinarily resident in Singapore. Self-employed persons must top up their Medisave account with the CPF Board before they register a new business name, become a registrant of an existing business name, or renew their business name registration. Undischarged bankrupts cannot manage the business without approval from the Court or the Official Assignee.
*Easiness of Registration*	An easy process to be completed within a few hours however subject to referral to different authorities which may delay up to 14 working days	An easy process to be completed within a few hours however subject to referral to different authorities which may delay up to 14 working days
*Level of Fees for Registration*	Low set up costs among all business vehicles	Low set up costs among all business vehicles
*Renewal Costs*	Low costs for renewal	Low costs for renewal
*Perception of Business by the Public*	Regarded least trust worthy and credibility	Regarded least trust worthy and credibility
*Funding Opportunities*	Obtaining loans from banks is only by mortgaging the personal assets.	Capital injection is limited to the new partner. Obtaining loans from banks is only by mortgaging the personal assets of the partners.
*Yearly Statutory Obligations*	Yearly renewals (one year or three years) CPF Medisave Top-Up required for Self-employed Persons before they can renew sole-proprietorship	Yearly renewals (one year or three years) CPF Medisave Top-Up required for Self-employed Persons before they can renew partnership
*Taxation*	Profits taxed at owner’ personal income tax rates	Profits taxed at partners’ personal income tax rates
*Taxation Form*	Form B	Form P for Partnership & Form B for respective Partners
*GST Implication*	Based on combined turnover of all of your sole proprietorship firms plus income derived from other trades, professional services or vocation	Based on combined turnover of all partnership businesses with the same composition (structure) of partners
*Perpetual Existence in Law*	Existence subject to life of the owner and cessation of the business	Existence subject to partnership agreement
*Transfer of Ownership*	When the owner exits the sole proprietorship will cease	Partners can be changed
*Closing the Business or Deregistration*	By Owner - Cessation of business Registrar can cancel registration if not renewed or where Registrar is satisfied business is defunct	By the partners - Cessation of business Registrar can cancel registration if not renewed or where Registrar is satisfied business is defunct

Question 2

Singapore Sole Proprietorship vs Partnership?

Achibiz · Accepted Answer

Comparison of Singapore Sole Proprietorship vs Partnership

Click here to view the comparison of Singapore Entities & Firms (In PDF).

Click here to view the Advantages & Disadvantages / Pros & Cons of all types of Entities & Firms in Singapore. (In PDF)

*Features*	Sole-Proprietorship	Partnership (General)
*Introduction*	A basic & simple form of starting the business vehicle	A basic form of business vehicle with two or more co-partners
*Suitability of Business Vehicle*	Suitable for a small scale business with low risks	Suitable for a small to medium size of business journey with co-partners
*Definition*	A business owned by one person	An association of two or more persons carrying on business in common with a view to profit
*Ownership or Owners*	Only one person	Between 2 and 20 partners. A partnership of more than 20 partners must incorporate as a company under the Companies Act, Chapter 50 (except for professional partnerships)
*Legal Identity or Status*	Not a separate legal entity Owner has unlimited liability Can sue or be sued in individual’s own name Can also be sued in business name Can own property in individual’s name Owner personally liable for debts and losses of business	Not a separate legal entity Partners have unlimited liability Can sue or be sued in firm’s name Cannot own property in firm’s name Partners personally liable for partnership’s debts and losses incurred by other partners
*Requirements For Registration or Formation or Incorporation*	Age 18 years or above. Singapore citizen / Singapore Permanent Resident / EntrePass holder. If owner not resident in Singapore, he must appoint an authorized representative who is ordinarily resident in Singapore. Self-employed persons must top up their Medisave account with the CPF Board before they register a new business name, become a registrant of an existing business name, or renew their business name registration. Undischarged bankrupts cannot manage the business without approval from the Court or the Official Assignee.	Age 18 years or above. Singapore citizen / Singapore Permanent Resident / EntrePass holder. If owner not resident in Singapore, he must appoint an authorized representative who is ordinarily resident in Singapore. Self-employed persons must top up their Medisave account with the CPF Board before they register a new business name, become a registrant of an existing business name, or renew their business name registration. Undischarged bankrupts cannot manage the business without approval from the Court or the Official Assignee.
*Easiness of Registration*	An easy process to be completed within a few hours however subject to referral to different authorities which may delay up to 14 working days	An easy process to be completed within a few hours however subject to referral to different authorities which may delay up to 14 working days
*Level of Fees for Registration*	Low set up costs among all business vehicles	Low set up costs among all business vehicles
*Renewal Costs*	Low costs for renewal	Low costs for renewal
*Perception of Business by the Public*	Regarded least trust worthy and credibility	Regarded least trust worthy and credibility
*Funding Opportunities*	Obtaining loans from banks is only by mortgaging the personal assets.	Capital injection is limited to the new partner. Obtaining loans from banks is only by mortgaging the personal assets of the partners.
*Yearly Statutory Obligations*	Yearly renewals (one year or three years) CPF Medisave Top-Up required for Self-employed Persons before they can renew sole-proprietorship	Yearly renewals (one year or three years) CPF Medisave Top-Up required for Self-employed Persons before they can renew partnership
*Taxation*	Profits taxed at owner’ personal income tax rates	Profits taxed at partners’ personal income tax rates
*Taxation Form*	Form B	Form P for Partnership & Form B for respective Partners
*GST Implication*	Based on combined turnover of all of your sole proprietorship firms plus income derived from other trades, professional services or vocation	Based on combined turnover of all partnership businesses with the same composition (structure) of partners
*Perpetual Existence in Law*	Existence subject to life of the owner and cessation of the business	Existence subject to partnership agreement
*Transfer of Ownership*	When the owner exits the sole proprietorship will cease	Partners can be changed
*Closing the Business or Deregistration*	By Owner - Cessation of business Registrar can cancel registration if not renewed or where Registrar is satisfied business is defunct	By the partners - Cessation of business Registrar can cancel registration if not renewed or where Registrar is satisfied business is defunct