Nature of sole proprietorships
Are sole proprietorships a separate entity?
No.
A sole proprietorship is where you own 100% of your business and do not have any partners or shareholders. It is very suitable for very small single-owned businesses that do not pose any dangers to the owner as there is no separation between person and entity for sole proprietorships.
This means, unlike a private limited liability company, sole proprietorships do not provide limited liability protection and does not safeguard your personal assets from your business activities. As a sole proprietor, you will be personally liable for your business’s profits and losses which is not ideal if your business is constantly making a loss and incurring liabilities frequently.
A Singapore Sole-Proprietorship is a business owned by one person or one Singapore-registered company. It is the simplest form of business structure in Singapore that meets the statutory requirement to register all profiteering activities carried out on a continuous basis.