Equity Plaza, Singapore -- (SBWIRE) -- 11/12/2010 -- In general, a sole proprietorship business is characterized by having one owner who holds all powers and authority over all business operations. It is also the basic of business structures.

“Though there are exceptions, anybody or any business enterprise can register a sole proprietorship in Singapore,” commences Rikvin on the discussion of its nature, “and that can be said of those who hold foreign citizenship.”

Individuals who are classified as un-discharged bankrupt constitute the exception clause. On the other hand, for foreign citizens aiming for a sole proprietorship, they must appoint a local manager as part of the conditions in Singapore.

“To qualify for a local manager appointment, one must either be a Singaporean citizen, a Permanent Resident of Singapore or possessing an Employment Pass, Approval-in-Principal Employment Pass or Dependent Pass,” continues Rikvin, a business firm based in Singapore for the purpose of providing corporate solutions to foreign entrepreneurs and business aspirants.

Because having a working visa such as the E-Pass accords eligibility for foreign individuals and entitles them to work privileges, they, too can be appointed as a local manager.

The benefits of registering a Singapore sole proprietorship business are many.

First is the ownership.

“Only a very few states allow 100% company shareholding among foreigners,” Rikvin continued its elaboration, “and Singapore is among them, thereby, making the city-state as the easiest place to do business.”

Second, since the sole ownership is awarded to one person, the discretion of making decisions is reserved solely by the proprietor. Hence, at anytime he deems necessary, he can implement decisions made even hastily. Unlike in other business structures, in sole proprietorship, the direction and operation of the enterprise emanates from the owner, and this does not require approval from any other.

The same can be said of its profits. No one else will exercise authority over how the profits must be spent. In Singapore, foreigners are allowed to repatriate their earnings, which is also of benefit.

Another advantage of a sole proprietorship is the low set up costs.

“Apart from the cost, the sole proprietorship has the least risk. In Singapore, many small enterprises such as copywriters, pet groomers, small retailers, and designers started off as a single proprietorship.”

Rikvin’s statement about Singapore being the most business-conducive avenue is also evident even in the humblest part of the city-state, the Chinatown, wherein merchants and craftsmen from Myanmar, Philippines, China, Hong Kong, South Korea, Thailand, Vietnam, Cambodia, and Thailand proliferate in business.

Fourth, a sole proprietorship business is neither subjected to account audit nor is it obliged to file annual returns. The only thing that the business owner is required is to pay his personal income tax. However, even in taxation, a sole proprietorship is of huge advantage.

“Unlike in corporate business structures, double taxation is not imposed upon a sole proprietorship,” Rikvin acknowledged, “rather, it is taxed on a personal level.”

The income accrued by the owner is regarded as the same with that of his business because neither is recognized as a legal entity, but both are treated as one. In addition, depending on the earnings of a sole proprietor, the personal income tax rate in Singapore is progressive—from anywhere between 3.5% and maximum of 20%.

Nonetheless, although the sole proprietorship is the basic structure, thereby, making its registration process the easiest, a foreign investor cannot register his business on his own.

“It is in providing service for foreign entrepreneurs to facilitate in engaging business in Singapore that a company like Rikvin was created,” stated Rikvin in a closure of the discussion.

Since 1998, Rikvin, the leading Singapore Company Solutions Specialist has been providing highly professional company incorporation services, both in attractive standard packages as well as customised services. Online incorporation being a hallmark service, other services of Rikvin include Singapore Offshore Incorporation, Singapore Sole Proprietor Formation, EntrePass, Singapore Employment Pass, Personalised work Pass application, GST Registration, Accounting Services, Tax Planning & Consulting, and Business Plan Drafting.

For more information, visit:

Rikvin Pte Ltd
http://www.rikvin.com/
20 Cecil Street, #14-01, Equity Plaza, Singapore 049705
Main Lines : 6564388887
Fax : 6564382436
Email: info@rikvin.com