Sole proprietorship is the most vibrant and the simplest Singapore enterprise setup.

Having one person to own the whole asset as well as the liabilities and responsibilities of the business is the most perfect setup of micro and small business procedures.

With the flexibility and dynamism of having one individual to own the company, he can address to every anxiety even to the minutest detail which is a shrewd thing to do for a business to prosper. This capability is attributed to having full control and administration of solely owning an enterprise.

While sole proprietorship has its benefits it absolutely has it disadvantages such as the enterprise owner is liable for all the assertions, lawsuits, liabilities, and economic deficiency of his enterprise which is viewed as his legal elongation.

Below are the major characteristics of the sole proprietorship:

*The owner or the sole proprietor is completely responsible for any claims, lawsuits, economic obligations and other drawbacks concerning to his enterprise.

* The enterprise is not treated as a distinct entity from its proprietor.

* The business is not intrinsically considered a “legal entity” so it cannot own properties, obtain provision and make a lawsuit under its title.

*The business is not a distinct lawful entity from the sole proprietor.

Just like any enterprise organisations, the sole proprietorship has its pros and cons which should be substantially advised by entrepreneurs:

The Basic benefits

Because there is only one proprietor, it is very easy for him to deal and transfer his enterprise anytime he likes to because there is no need to seek the acceptance of other co-owners. Because of this, the enterprise is usually easy to liquidate contrasted to other setup such as partnership and corporation.

Furthermore, being the sole proprietor means that a person can enjoy all the profits and earnings of his business without having to split these to other people.

Another benefit of this setup is that the sole proprietor is not obligated to present complicated compliance affairs and procedures. In detail, he is not even needed to submit his annual returns since he is only taxed at a personal earnings rate.

Its Drawbacks

Paying off the debts and other economic obligations would seem challenging in a sole proprietorship setup, not like any other setup because being the sole proprietor would entail using even individual assets and acquisitions to pay off whatever unfavorable business attenuating factors. Rising up the required assets and capital to make the business viable would also be demanding for a sole proprietor since he doesn’t have any person to share it with.

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Since 1998, Rikvin consultancy has been providing highly professional Singapore Company Incorporation, both in attractive standard packages as well as customised services. Incorporate a Singapore Company online being a hallmark service, other services of Rikvin include Singapore Sole Proprietorship Setup, Singapore Subsidiary Registration, Singapore Representative Office, Offshore Incorporation, EntrePass, Singapore Employment Pass, Personalised Work Pass application, GST Registration, Company Incorporation, Tax Planning & Consulting, and Business Plan Drafting.

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