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Buying a Commercial Property in Singapore: Personal Name or Company?

For many business owners, buying their own office, shop or industrial unit is a major milestone. It ends the cycle of rent increases and, over time, builds an asset. But one question comes up early and is often decided too quickly: should you buy the property in your personal name, or through your company?

The answer affects your income tax, your GST position and how you finance the purchase, both now and many years down the road. Here is what we walk our clients through before they sign.

Option 1: Buying in Your Personal Name

Rental income and expenses. If you rent the property out (including to your own company), the rental income is added to your personal income and taxed at personal rates of 0% to 24%. You can deduct the actual expenses you incur in earning the rent, such as mortgage interest, property tax, maintenance fees, repairs, insurance and agent’s commission, so keep proper receipts and records.

Note that the simplified option of claiming deemed expenses of 15% of the gross rent is only available for residential properties. It does not apply to commercial or industrial properties.

No GST to deal with, but no GST to claim. As an individual who is not GST-registered, you do not charge GST on the rent. However, if you buy from a GST-registered seller, such as a developer, the 9% GST on the purchase price is a cost you cannot recover.

Selling later. Singapore has no capital gains tax, so a gain on a genuine long-term investment is generally not taxed. There are no GST complications when you sell.

Option 2: Buying Through Your Company

Corporate tax rates and actual expenses. Rental income or business use is taxed at the corporate rate of 17%, reduced further by the partial tax exemption. The company can deduct its actual expenses, such as loan interest, property tax, maintenance and insurance.

GST can be claimed upfront. If your company is GST-registered and uses the property for its taxable business, it can generally claim back the 9% GST paid on the purchase. On a $1.5 million unit, that is $135,000 back in the company’s pocket, which is a real cash-flow advantage at the start.

The Catch: GST When You Deregister

This is the part many buyers overlook. A common scenario: years later, you wind down or sell the operating business, but keep the property. The company becomes an investment holding company earning passive rental income. Because that rent is usually well below the $1 million GST registration threshold, the company often deregisters from GST to avoid the ongoing GST filings.

At that point, the company must account for GST on the market value of the business assets it still holds, including the property. Because the GST is based on the property’s value at deregistration, not what you paid, a property that has gone up in value means a larger GST bill than the GST you originally claimed.

Example: your company buys a unit for $1.5 million and claims $135,000 of GST. Ten years later, the business has wound down and the company simply rents the unit out. It deregisters from GST when the unit is worth $2.2 million, and must now pay GST of about $198,000 (9% of $2.2 million), in cash, even though nothing has been sold.

Do Not Forget: Singapore Property Tends to Appreciate

Historically, Singapore property prices have tended to rise over the long term. That is good news for your net worth, but it also means the “GST holiday” you get by claiming GST upfront can turn into a bigger cash outflow later if the company ever deregisters. When you compare the two options, look at the whole life of the property, not just the day you buy it.

Financing Works Differently

  • Personal name: the loan is assessed against your personal income, and the Total Debt Servicing Ratio (TDSR) limit of 55% applies to property loans to individuals. A large commercial loan may reduce how much you can borrow for a home later.
  • Company: TDSR does not apply to a company. The bank looks at the company’s financial statements and cash flow instead. Banks commonly ask directors to give a personal guarantee, and younger companies may be offered a lower loan amount or less attractive terms.

Our advice: speak to your bank about both options before committing, and remember that a personal guarantee means the loan can still become your personal liability.

Tip: What About Residential Property for Staff Accommodation?

Some business owners take a different route: the shareholder buys a residential property personally and rents it to the company to house its staff. This can work well:

  • For you as landlord: rent from a residential property qualifies for the 15% deemed expenses, plus your actual mortgage interest, without needing receipts for other expenses.
  • For the company: rent paid to house its employees is generally a deductible business expense.
  • No GST issues: the leasing of residential property is exempt from GST, so there is nothing to claim or to repay on deregistration.

Points to watch:

  • Charge a market rent. Because the company is a related party, IRAS may challenge rent that is set above market rates to shift profits out of the company.
  • Housing is a taxable benefit for the occupant. Accommodation provided to an employee is taxable in their hands. If the occupant is you or another director-shareholder, you would be taxed on that benefit as well as on the rental income, so this works best when the unit genuinely houses staff.
  • Check the stamp duty first. If you already own a home, a Singapore Citizen buying a second residential property pays 20% Additional Buyer’s Stamp Duty (ABSD). Companies pay 65% ABSD on residential property, so buying in your personal name is usually the better option, but the ABSD cost must be weighed against the tax savings.
  • Property tax: as the property is not your own home, non-owner-occupier property tax rates apply.
  • It must be a purely residential property. If any part of the property is approved for non-residential use, the 15% deemed expenses option is not available.

Questions to Ask Before You Decide

  • Will the property be used by your own business, or rented to third parties?
  • Is your company GST-registered, and is it likely to remain registered for as long as it owns the property?
  • How long do you plan to hold the property, and how might you eventually exit, through a sale or by passing it on?
  • What is your personal income tax bracket compared with the company’s effective tax rate?
  • How much can you borrow under each option, and are you comfortable giving a personal guarantee?

There is no one-size-fits-all answer. The right choice depends on your business, your cash flow and your long-term plans.

How We Can Help You

We help business owners compare the tax, GST and cash-flow impact of buying in their personal name or through a company, before they commit. Contact us to arrange a discussion before you sign the Option to Purchase.

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10 Legal Ways to Reduce Tax in Singapore: A Practical Guide for Start-ups and Business Owners

The tax system rewards people who understand how it works. Singapore already has one of the most business-friendly tax regimes in the region, yet many start-ups and business owners still pay more tax than they need to, simply because nobody told them what they could claim.

Here are 10 legitimate ways to reduce your tax in Singapore, written with founders and growing businesses in mind.

1. Start-ups: Make Your First Three Years Count

If you have just incorporated, this is the single biggest tax advantage you will get, so plan around it.

For their first three Years of Assessment (YAs), qualifying new companies enjoy the Start-up Tax Exemption: 75% of the first $100,000 of chargeable income and 50% of the next $100,000 are tax-exempt. Most locally incorporated start-ups owned by individuals qualify, although investment holding and property development companies do not. After the first three years, the Partial Tax Exemption still applies to every company (75% of the first $10,000 and 50% of the next $190,000).

On top of that, companies receive a 50% Corporate Income Tax Rebate for YA 2026, capped at $40,000. If your company employed at least one local employee in 2025 (shareholder-directors do not count), you also receive a minimum cash grant of $2,000 as part of this rebate.

What this looks like in practice: a new company with $100,000 of chargeable income pays tax on only $25,000. At 17%, that is $4,250, and the 50% rebate brings it down to about $2,125, an effective rate of roughly 2%.

Our advice: the early years are when your tax bill is lowest, so it is a good time to invest in the business, keep clean records from day one, and make sure your company is set up to qualify.

2. Do Not Be Afraid to Get Professional Help

Many entrepreneurs try to do everything themselves to save money. But professional fees are generally tax-deductible, including accounting, audit, tax filing, corporate secretarial services and legal fees on day-to-day business matters such as contracts and debt recovery.

That means the real cost of good advice is lower than it looks, and the benefits often outweigh it: avoiding late-filing penalties, claiming reliefs you did not know about, getting your structure right early, and freeing your time to grow the business.

The same goes for other day-to-day running costs such as rent, staff salaries and CPF, software subscriptions and marketing. Keep the invoices, as IRAS may ask for them.

3. Upgrade Yourself: Let the Company Pay for Your Courses

As a founder, the most valuable asset in your business is often you. Learning new skills, whether in digital marketing, finance, AI tools or your own industry, pays off for years, and the tax system supports it.

When the company pays for job-related training and courses for its staff, including working directors, the course and exam fees are tax-deductible for the company. For the employee, company-sponsored training is generally not taxable and does not attract CPF, as long as it forms part of the company’s training and is open to all staff to apply.

This matters even more now: the Course Fees Relief for individuals ended from YA 2026, so paying for a course out of your own pocket no longer gives you any personal tax relief.

Our advice: plan your learning budget through the company, keep the course invoices, and make sure the training is relevant to your work. Avoid bundling a holiday into an overseas course, as the holiday portion is taxable.

4. Travelling to Grow Your Business? Pay Yourself a Per Diem

This is one of the most commonly overlooked items for start-ups. When you or your team travel overseas to meet clients, attend trade fairs or explore new markets, the company can pay a per diem allowance to cover meals, local transport and incidental costs.

  • Per diem paid within IRAS’s acceptable rates for the country visited is not taxable to the employee, and that includes working directors.
  • For the company, it is a deductible business expense.
  • Only the portion above IRAS’s rates is taxable as income.

Our advice: set a simple travel policy and record the travel dates and business purpose. The acceptable daily rates in IRAS’s guide on per diem allowances are a practical starting point for working out a reasonable per diem for each country. Paying the per diem upfront based on a genuine and reasonable estimate of the trip’s expected costs also means CPF contributions are not payable on it.

5. Working from Home? Claim Your Home Office Costs

Many start-ups begin life at the dining table. If you run your business from home as a sole proprietorship or partnership, you can claim the business share of your home expenses, such as electricity, internet and phone bills.

The claim should be worked out on a reasonable basis, for example the space you use for work and the hours you spend working, so keep a simple record of how you arrived at the figure. If your business is run through a company, talk to us about the right way to set this up.

6. Buying a Laptop for Work? Write It Off in Full

Small items you buy for the business, such as a laptop, phone, printer or office furniture, do not have to be depreciated slowly over many years.

  • Items costing $5,000 or less each can be written off in full in the year you buy them, up to a total of $30,000 per YA.
  • Computers and prescribed automation equipment can be written off 100% in one year regardless of cost.
  • Other equipment can generally be written off over three years.

Our advice: if you were planning to upgrade equipment anyway, buying before your financial year-end brings the tax saving forward.

7. Renovating Your Office? You Can Claim It, Including Designer Fees

Fitting out a new office or shop is a big cost for a growing business, and the good news is that much of it is tax-deductible.

  • Qualifying renovation and refurbishment costs can be claimed up to $300,000 for every three-year period (the current period is YA 2025 to YA 2027).
  • From YA 2025, designer and professional fees, such as interior designer and consultant fees, also qualify.
  • You can choose to claim the deduction over three years, or all in one year.

Note that structural works requiring approval from the building authorities do not qualify.

8. Expanding Overseas? Claim Double

Under the Double Tax Deduction for Internationalisation, qualifying market-expansion costs such as overseas business development trips, investment study trips and trade fairs can be deducted at 200%. Up to $150,000 of qualifying expenses per YA can be claimed without prior approval, rising to $400,000 from YA 2027, and the scheme runs until 31 December 2030.

Our advice: pair this with point 4. A well-documented overseas business trip can both reduce your company’s tax and provide tax-free per diem for your team.

9. Giving Back? Your Donation Is Worth 2.5 Times

Donations to Institutions of a Public Character (IPCs) qualify for a 250% tax deduction, now extended to donations made up to 31 December 2029. A $10,000 donation reduces your taxable income by $25,000, so giving to causes you care about also lowers your tax.

10. Plan How You Pay Yourself

As a founder, how you take money out of the company matters.

  • Salary or director’s fees are deductible for the company but taxed in your hands at personal rates of up to 24%.
  • One-tier dividends come from profits already taxed in the company, and are tax-free to you as a shareholder.

The right mix depends on your company’s profits and your other income, and it is worth reviewing each year. You can also reduce your personal tax by contributing to the Supplementary Retirement Scheme (up to $15,300 a year for Singapore Citizens and PRs, or $35,700 for foreigners) and by making CPF cash top-ups (relief of up to $8,000 for yourself and $8,000 for family members). Total personal reliefs are capped at $80,000 per YA.

Tax Planning, Not Tax Evasion

Everything above is about using the reliefs Singapore’s tax laws already provide. Arrangements set up mainly to avoid tax without genuine business substance can be challenged by IRAS, and under-declaring income or overclaiming expenses can lead to heavy penalties. Good tax planning starts with accurate records and good advice.

How We Can Help You

Whether you have just started your business or are ready to expand, our team can review your tax position, help you claim what you are entitled to, and set up your company and your own pay in the most tax-efficient way. Contact us to arrange a discussion.

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Accounting for Cryptocurrencies

As businesses in Singapore and globally explore new frontiers in digital finance, cryptocurrencies have increasingly appeared on corporate balance sheets. From technology firms like Tesla to financial institutions like DBS Bank, cryptoassets are no longer fringe investments. This shift raises an important question: How should cryptocurrencies and other digital tokens be accounted for under Singapore Financial Reporting Standards (International) [SFRS(I)]?

Cryptocurrency ≠ Cash or Financial Asset

Although often referred to as “digital money,” cryptocurrencies like Bitcoin or Ethereum do not meet the definition of cash or cash equivalents under SFRS(I) 1-7, as they are not legal tender and lack universal acceptance. Similarly, they are not financial assets under SFRS(I) 9, as they do not give holders contractual rights to receive cash or another financial asset.

Beyond Cryptocurrency: 4 Types of Cryptoassets

Cryptocurrency is just one category in the growing universe of digital tokens. The ISCA Financial Reporting Guidance (FRG) 2, titled “Accounting for Cryptoassets from a Holder’s Perspective”, classifies cryptoassets into four types, each with different accounting treatments:

Type of CryptoassetNature and Description
CryptocurrencyUsed as a medium of exchange or store of value; does not represent ownership rights or entitlements.
Utility TokenGrants access to specific services or products on a blockchain platform.
Asset TokenRepresents ownership of a physical or financial asset (e.g., real estate, commodities).
Security TokenRepresents equity or debt interests with associated contractual rights (e.g., dividends, repayment).

Accounting Treatment by Type

Type Applicable StandardsCommon Measurement Basis
Cryptocurrency- SFRS(I) 1-38 (Intangible Assets)- At cost less impairment
- SFRS(I) 2 (Inventories) - At cost less impairment or fair value less costs to sell (For broker-trader)
Utility Token- SFRS(I) 2 (Inventories)- At cost less impairment or fair value less costs to sell (For broker-trader)
- SFRS(I) 9 (Financial Instruments) - Fair value or amortised cost based on classification
- SFRS(I) 1-16 (Leases)- At cost less impairment
- SFRS(I) 1-38 (Intangible Assets)- At cost less impairment
- Prepayment- At amortised cost
Asset Token- Based on underlying assets
Security Token- SFRS(I) 9 (Financial Instruments) - Fair value or amortised cost based on classification

Conclusion

While cryptocurrencies are leading the headlines, companies should be aware that there are multiple types of cryptoassets, each with distinct accounting implications. The ISCA’s FRG 2 provides a structured framework to ensure that cryptoasset holdings are properly classified and presented under SFRS(I).

If your company holds or plans to invest in cryptoassets, it’s crucial to assess their nature and ensure compliance with the appropriate accounting standard. Our advisory team can help navigate this evolving space with clarity and accuracy.

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新加坡公司指南

想在新加坡创业？我们帮您搞定！🚀

我们的团队精心准备了一份全面指南，帮助未来的企业主轻松完成公司注册流程。

无论您是本地企业家还是外国投资者，本指南都涵盖了您需要了解的一切——从商业结构和注册流程到税务合规和营业执照申请。

✅ 公司注册的逐步流程

✅ 关键要求和合规义务

✅ 实用见解，助您顺利创业

这份资源旨在为您节省时间，确保创业过程无忧无虑。立即下载指南，自信开启您的创业之旅！

新加坡创业指南

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Guide to starting a company in Singapore

Starting a business in Singapore? We’ve got you covered! 🚀

Our team has prepared a comprehensive guide to help future business owners navigate the company incorporation process with ease.

Whether you’re a local entrepreneur or a foreign investor, this guide covers everything you need to know—from business structures and registration to tax compliance and licensing.

✅ Step-by-step incorporation process
✅ Key requirements and compliance obligations
✅ Practical insights for a smooth startup journey

This resource is designed to save you time and ensure a hassle-free experience as you embark on your business journey. Download the guide now and start your business with confidence!

Click to download the guide to doing business in Singapore.

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Extent of Penalty for Non-Compliance and the Importance of Accounting Records

Case: Former CEO, CFO and Independent Directors of Hyflux Ltd charged with offences under the Securities And Futures Act and the Companies Act

The former Chief Executive Officer of Hyflux Ltd (Hyflux), Ms Lum Ooi Lin, its former Chief Financial Officer, Mr Cho Wee Peng, and four independent directors of Hyflux at the material time were charged in court on 17 November 2022 for disclosure-related offences under the Securities and Futures Act (SFA). Ms Lum was further charged with an offence under the Companies Act (CA) for her failure in ensuring Hyflux’s compliance with accounting standards.

Against Lum Ooi Lin:

(a) One count of section 203(2) read with section 331(1) SFA, for consenting to Hyflux’s intentional failure to disclose information relating to the Tuaspring Integrated Water and Power Project (Tuaspring), when such disclosure was required under the Singapore Exchange Listing Rules (Listing Rules);

(b) One count of section 253(1)(b) read with sections 253(4)(b)(i) and 277(3) SFA for Hyflux’s omission to state the same information relating to Tuaspring in the 2011 Offer Information Statement (2011 OIS). The 2011OIS was issued for the offer of S$200 million, 6% preference shares on 13 April 2011; and

(c) One count of section 201(5) read with section 204(1) CA for failing to ensure that Hyflux made disclosures required under the accounting standards for its financial statements for the financial year ended 31 December 2017. This included the failure to disclose the breach of a subsidiary’s loan agreement that permitted its lenders to demand accelerated repayment.

Against Cho Wee Peng:

(a) One count of section 203(2) read with section 331(1) SFA for conniving in Hyflux’s intentional failure to disclose information relating to Tuaspring, when such disclosure was required under the Listing Rules.

Against four Independent Directors of Hyflux, namely Teo Kiang Kok, Gay Chee Chong, Murugasu Christopher and Rajskar Kuppuswami Mitta:

(a) One count each of section 203(2) read with section 331(1) SFA, for their neglect in connection with Hyflux’s intentional failure to disclose information relating to Tuaspring, when such disclosure was required under the Listing Rules; and

(b) One count each of section 253(1)(b) read with sections 253(4)(b)(i) and 277(3) SFA, for Hyflux’s omission to state the same information in the 2011 OIS.

In accordance with Section 199 of the Companies Act 1967, every company must cause to be kept such accounting and other records as will sufficiently explain the transactions and financial position of the company and enable true and fair financial statements and any documents required to be attached thereto to be prepared from time to time, and must cause those records to be kept in such manner as to enable them to be conveniently and properly audited.

If the default is made in complying with this section, the company and every officer of the company who is in default shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months and also to a default penalty.

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Different Business Structures in Singapore

There are a lot of factors needed to be considered when it comes to choosing a business structure as there are various types of it and each has its own advantages and disadvantages. There are five different types of business entities in Singapore which are:

1) Sole Proprietorship
2) Partnership
3) Limited Partnership
4) Limited Liability Partnership
5) Company

This guide will cater an overview of the numerous types of business entities in Singapore and the differences among them. 

1) Sole Proprietorship

A Sole Proprietorship, also known as a Sole Trader, is a business owned by one person.

Requirements:

He/She has to be either:

  • a Singapore Citizen
  • Singapore Permanent Resident
  • EntrePass Holder,
  • age 18 and above and
  • is not an undischarged bankrupt.
    •  

If a foreigner wishes to set up a business, he/she must designate a local representative.

The local representative must be:

  • A natural person
  • At least 18 years old
  • Of full legal capacity
  • Ordinarily resident in Singapore (i.e. has a Singapore residential address)
  •  

Closing a sole proprietorship

A sole proprietorship business will cease when the proprietor passes away or wishes to end the business. The Business Registration Act requires any person registered under it who has ceased to carry on business to notify the Registrar of this. Failing to do so is an offence and may result in the imposition of a fine.

If the sole-proprietorship is GST registered, the business owner has to apply for cancellation of GST registration with IRAS first.

Things to note

Sole proprietorship is ideal for those who are planning to start a one-person business and don’t expect the business to grow beyond yourself. It is the easiest and simplest to manage, yet the riskiest compared to the other business entities. Otherwise, one should consider this as a serious drawback and it is not recommended to inspiring entrepreneurs.

Profits are taxed at personal income tax rates ranges from 0% to 22%.

It is not a separate legal entity from the business owner and as such, the business owner is personally liable for all the debts and losses of the sole proprietorship, and the business owner can sue or be sued in his or her own name.

2) Partnership

Business partnerships are formed by the agreement between 2 or more individuals (maximum 20)  to carry on a business as co-owners.

Requirements

They has to be either:

  • a Singapore Citizen
  • Singapore Permanent Resident
  • EntrePass Holder
  • age 18 and above and
  • is not an undischarged bankrupt
  •  

 A local manager has to be appointed and is at least 18 years old and is not an undischarged bankrupt.

Closing a partnership

A partnership business will cease when one of the partners dies or when one of the partners wishes to terminate the business with the agreement of the other partners.

If the partnership is GST registered, the partners has to apply for cancellation of GST registration with IRAS first.

Tax Rates

Likewise, the tax rate imposed will be that of the partner, example; if the partner is an individual, the personal income tax rates will apply, if the partner is a company, corporate tax rates would apply. Personal tax rate ranges from 0% to 22%. The partnership income tax is paid by the partnership, but the profits and losses are divided among the partners, and paid by the partners, based on their agreement.

The risk of a partnership are similar to the Sole Proprietorship, thus it is not recommended for high-risk businesses and businesses with enthusiastic growth plans.

A partnership does not have its own separate legal identity from the partners. Therefore, unless otherwise agreed, the partnership will come to an end each time a partner leaves.

3) Limited Liability Partnership

Limited Liability Partnership is the most recent and most advanced business incorporation structure, as it combines the features of both partnerships and companies. It is a separate legal entity from their owners, which means that owners are not responsible for any debts or losses the business incurs.

Requirements

LLP have to have at least two partners who can be individuals (at least 18 years old) or body corporate (company or LLP) .

Every LLP must have at least one manager. He/She has to be who is an ordinary resident in Singapore and age 18 years and above.

Closing a LLP

An LLP will continue to exist until it is dissolved. Dissolution usually occurs after a process called “winding-up” has been completed.

Winding up begins after dissolution, where all partnership affairs will be settled. This includes the completion of unfinished transactions, payments to creditors, liquidation of assets and the distribution of proceeds to various partners.

Then will the partnership be terminated when all the partnership matters have been fully wrapped up.

Things to note

An LLP is capable of:

    • Suing and being sued in its name;
    • Acquiring and holding property in its name;
    • Having a common seal in its name and
    • Doing such other acts and things in its name, as bodies corporate may lawfully do and suffer.

The key features of a limited liability partnership are as follows:

Limitation of liabilities

The partners of the LLP will not be held personally liable for any business debts incurred by the LLP. A partner may, however, be held personally liable for claims from losses resulting from his own wrongful act or omission, but will not be held personally liable for such wrongful acts or omissions of any other partner of the LLP.

Declaration of solvency

LLP must submit to the Registrar an annual declaration of solvency or insolvency (i.e. being able or unable to pay its debts respectively) which will be made available to the public.

LLP gives owners the flexibility of operating as a partnership while having a separate legal identity like a private limited company.  It is mainly meant for carrying a profession (e.g. accountants, law firms, architects, etc.) where two or more professionals would like to build a joint practice in a common field, and is not suited for businesses that carry a trade. The owners must enter into detailed agreements about how the profits and management responsibilities are divided.

Perpetual Succession

The LLP has perpetual succession, which means that any change in the partners of a LLP will not affect its existence, rights or liabilities.

3) Company

A company is a separate legal entity and can incur debt, sue and be sued. A company’s business line depends on its structure, which can range from a partnership to a proprietorship, or even a corporation. 

Companies may be either be:

  • public; having 50 members or less, or
  • private; can have more than 50 members. 
  •  

Requirements

Likewise, a company must designate a local director that is at least 18 years old and is an undischarged bankrupt. 

Things to note:

A private limited company is the most common form of the company chosen by entrepreneurs and investors, mainly due to the tax incentives that can be applied for.

A company is considered as a separate legal entity which means that the members of the company will not be held personally liable for the debts or losses of the company. 

Unlike all the other business entities, a private limited company can qualify for tax exemption schemes and is taxed at the effective corporate tax rate of 17%.

Perpetual Succession

Members in a company may come and go but the company will still remain and proceed to continue its business forever or until it is closed down. This means that a company has the characteristics of perpetual succession, thus giving the company a safer and a more stable area for investors to invest their money on and enhance the chances of their investment being a success. 

Closing a Company

A company can cease to exist in one of the two options, either by;

  • winding up or,
  • striking off

Comparison

Sole Proprietorship

Partnership

Limited Liability Partnership

Company

  • It is easy to set up and the cost is minimal.
  • Owner has full control of the business.
  • All the profits generated by the business will belong to the sole-proprietor.
  • Profits are taxed at personal income tax rates
  • No separate legal entity.
  • Has unlimited liability.
  • It can sue or be sued in the owner’s name.
  • No perpetual succession.
  • No corporate tax incentives and benefits.
  • It is easy to set up and the cost is minimal.
  • Easier administration and management of the business.
  • Reduced compliance obligations.
  • No separate legal entity.
  • Has unlimited liability.
  • Flexibility of succession is variable.

  •  

  • It is easy to set up and the cost is minimal.
  • Easier administration and management of the business.
  • Reduced compliance obligations.
  • Separate legal entity.
  • Perpetual succession.
  • Flexibility of succession is variable.
  • Difficult to transfer ownership of business.
  • Higher registration cost and its costly to maintain due to more compliance obligations.
  • Limited liability.
  • Excellent tax benefits.
  • Perpetual Succession.
  • Separate legal entity.
  • Annual General Meeting has to be conducted.
  • Annual Return filing with the Authority.
  • Estimated Chargeable Income and Corporate Tax to be filed.