Sole proprietorship is the simplest and cheapest business structure in Singapore. It is a business owned by one person or one company and must be renewed with ACRA annually. The sole proprietorship does not constitute a separate legal entity and therefore the owner is personally accountable for all liabilities of the business. There is no separation between the owner and its personal assets.
The owner has absolute say in the running of the business. In most of the cases, the sole proprietor acts in the capacity of the manager if he is ordinarily resident in Singapore. Any appointed manager has to be a natural person of at least 18 years of age. The profits derived from sole proprietorship are treated as personal income of the owner and subjected to personal tax rate.