Can I start as a sole proprietor in Singapore?

Yes, it is possible. However, a sole proprietorship (Sole Proprietorship) is not a legal entity separate from its owner, so the owner has unlimited personal liability for business debts. It is best to compare it with a private limited company (Pte. Ltd.).

Income of a sole proprietorship is generally reported as the owner's personal income. The tax difference compared with a company can vary depending on the level of income and personal circumstances.

• If you are a Singapore resident (EP, DP or PR): it can be an option for a small one-person business. However, depending on your residence status, you may need to check work permission requirements before running the business.
• If you are an individual living overseas: you must appoint at least one authorised representative (Authorised Representative) who meets the local residency requirement.
• If you need to raise investment or separate risk: a private limited company is generally considered.

Tax treatment can differ depending on the company's revenue, shareholder structure and transactions, so please consult an accounting professional before applying it.

The Lee Kim Alliance accounting team provides accounting and tax consultations.

As of November 2026, source: ACRA