How to Register a Sole Proprietorship (自雇業) in Singapore

Starting a business in Singapore doesn’t have to mean incorporating a company. For many, the simplest path is a sole proprietorship (自雇業). In Singapore, the entire process can often be completed online in under an hour through BizFile, with low registration fees and minimal ongoing compliance.

Unlike a private limited company, a sole proprietorship is not treated as a separate legal entity. This means you retain full control of your business, but also bear unlimited personal liability for its debts. For many freelancers, consultants, and small traders, the ease of setup and affordability outweigh these risks.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Singapore?

In Singapore, a sole proprietorship is officially called a sole proprietorship or 自雇業 in local translation. It may also be referred to as a sole trader, self-employed worker, or independent contractor. These terms all describe the same business model: one person legally running a business without forming a separate company.

How does a sole proprietorship (自雇業) work in Singapore?

Sole proprietorship (自雇業) vs private limited company in Singapore

In Singapore, an alternative to a Sole Proprietorship is a Private Limited Company (Pte Ltd), which offers limited liability but requires higher costs and stricter compliance. Here is a comparison:

Step-by-step guide: How to register a sole proprietorship in Singapore

Step 1: Check your eligibility

To register a sole proprietorship, you must be at least 18 years old and one of the following:

• Singapore Citizen
• Permanent Resident
• Holder of EntrePass/ONE Pass/Tech.Pass/Employment Pass

Undischarged bankrupts are disqualified. Foreigners must appoint a local authorised representative who is a Singapore Citizen, Permanent Resident, or holder of an EntrePass or Employment Pass. After registering the sole proprietorship, foreigners who wish to manage operations while physically in Singapore may need to obtain approval from the Ministry of Manpower (MOM).

Step 2: Choose your business name

Choose a unique, non-offensive name and reserve it via BizFile for $15. Reservation lasts 120 days.

Step 3: Gather required documents

To register a sole proprietorship, prepare:

• Proposed business name confirmation
• Description of business activity (SSIC code)
• Local Singapore business address
• NRIC or FIN copy (or passport for foreigners)
• Proof of residential address
• For foreign set-up: appointment confirmation of authorised representative

Step 4: Register with ACRA

Log in to BizFile with SingPass (a digital identity for Singapore residents) or CorpPass (a digital identity for businesses and other entities) and submit your application. If you’re a foreigner, you must apply through a registered filing agent. After payment, approval usually takes about 15-30 minutes unless another agency review is required.

Step 5: Pay registration fees and contributions

Costs include $15 for name reservation and S$100 for registration (1 year). Renewal is $30 per year or $90 for 3 years.

Step 6: Complete post-registration obligations

Once registered, you’ll receive your Unique Entity Number (UEN), which must appear on official documents such as invoices. If you are GST-registered (meaning your business is registered for Goods and Services Tax), you must issue tax invoices that meet Inland Revenue Authority of Singapore (IRAS) rules and clearly show GST charged. If you are not GST-registered, you issue standard invoices without GST.

All invoices and accounting records must be kept for at least 5 years, whether in paper or digital form, and must be accessible if IRAS requests them.

Financial and tax obligations for sole proprietors in Singapore

• Income tax: Sole proprietors are taxed as individuals, not companies. Profits are reported in the owner’s personal tax return (Form B or B1) and taxed at progressive rates, up to about 22%. Filing is done annually with the IRAS.
• MediSave (CPF): All Singapore Citizens and Permanent Residents must make annual MediSave contributions as part of Singapore's social security system based on net business income. Contributions must also be up to date before registering or renewing a sole proprietorship.
• GST: A business must register for GST once its yearly turnover exceeds $1 million. Below this threshold, registration is optional. GST-registered businesses charge 9% GST and file returns, usually every quarter, with IRAS.
• Record-keeping: Accounting records, invoices, and expense documentation must be retained for at least 5 years. Sole proprietors are not required to conduct audits.
• Renewals: Sole proprietorships must be renewed annually through ACRA’s BizFile portal by paying the renewal fee. Non-renewal can lead to deregistration.

Launch your contracting career and stay compliant with Deel

Registering a sole proprietorship gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start a 自雇業 in Singapore?
There is no paid-up capital required. You only pay the registration fees.

Do 自雇業 need to register for GST?
Only if annual turnover exceeds S$1 million. Otherwise, GST registration is optional.

How much are the standard monthly or annual contributions?
Registration costs are S$115 for the first year (S$15 name + S$100 reg). Renewal costs S$30 per year.

Can a 自雇業 hire employees?
Yes. However, you must register your employees for CPF (Central Provident Fund) contributions if they are Singapore Citizens or Permanent Residents. If hiring foreign employees, you must comply with Ministry of Manpower (MOM) regulations, which include applying for the correct work passes, meeting quota requirements, and providing medical insurance.

How long does it take to register as a 自雇業 in Singapore?
If all is in order, registration takes under an hour. If a referral is needed, it may take longer.

Can foreign nationals register as 自雇業 in Singapore?
Yes, by appointing a local authorised representative (citizen/PR or pass holder) and using a registered filing agent. To run the business on-site, MOM approval is required.

Do 自雇業 need a separate business bank account?
No, it’s not mandatory—but highly recommended for bookkeeping clarity and credibility.

What happens if I stop working as a 自雇業?
You must log in to BizFile+ and file a cessation of business. After that, cancel any business licences and close your bank accounts. As long as all taxes, CPF MediSave contributions, and other obligations are settled, there are no penalties for closing your sole proprietorship.

Are there any government incentives or reduced rates for new 自雇業?

Most government tax exemptions and startup grants in Singapore are designed for Private Limited Companies, not sole proprietorships. As a result, sole proprietors are generally not eligible for these incentives.

Can I use Deel as a 自雇業 to get paid by international clients?
Yes. Deel allows sole proprietors (自雇業s) to receive payments globally in multiple currencies, with transparent fees and rates.

Does Deel generate compliant invoices for 自雇業s?
Absolutely. Deel automatically generates invoices that meet legal and tax requirements, helping you stay compliant with Singapore regulations and beyond.

Can Deel help me with taxes as a sole proprietor in Singapore?
Yes. Deel provides downloadable tax reports and payment records you can use when filing returns. While Deel doesn’t replace your accountant, it simplifies your record-keeping and compliance.

Does Deel offer contracts for freelancers and 自雇業s?
Yes. Deel includes contract templates compliant with local law, so you can work with clients safely and professionally.

Can I access benefits through Deel as a 自雇業?
Yes. Deel offers optional perks like health insurance, retirement savings plans, and other benefits usually available only to employees—giving freelancers more security.