Can a foreigner set up a sole proprietorship in Singapore

Yes, a foreigner can set up a sole proprietorship in Singapore. The process involves a few key steps and requirements:

1. Eligibility: Foreign individuals who wish to establish a sole proprietorship in Singapore must hold either an EntrePass or a Dependant Pass/Long Term Visit Pass Plus issued by the Ministry of Manpower (MOM).
2. Registration: The foreigner must register the sole proprietorship with the Accounting and Corporate Regulatory Authority (ACRA) in Singapore. The registration can be done online through ACRA’s BizFile+ portal.
3. Business Name: Choose a unique business name that is not already registered in Singapore and complies with ACRA’s naming guidelines. Offensive or inappropriate names are not allowed.
4. Local Address: A local Singapore address must be provided as the business address. This can be a residential or commercial address.
5. Registration Fees: Pay the required registration fees, which include a registration fee and a name application fee. These fees may vary and are subject to change, so it’s advisable to check the latest fee schedule on ACRA’s website.
6. Documents: Prepare the necessary documents, which may include a copy of the business owner’s passport, residential address proof, and any required passes issued by MOM.
7. Timeline: The registration process can typically be completed within a few hours or up to a few days, depending on the accuracy and completeness of the submitted information.
8. Compliance: Once registered, the sole proprietor must comply with Singapore’s regulatory requirements, including filing annual tax returns, maintaining proper accounting records, and renewing any necessary permits or passes.
9. Liabilities: It’s important to note that a sole proprietorship does not provide limited liability protection. The sole proprietor is personally liable for all debts and obligations of the business.
10. Seek Professional Advice: While the process of setting up a sole proprietorship in Singapore is relatively straightforward, it’s recommended to seek professional advice from legal, tax, or business consulting experts to ensure full compliance with Singapore’s regulations and to understand the implications for your specific situation.