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When you see your business works. Sole Proprietorship is a great way to test ideas. Once you know you’re going to stick with it, consider setting up a Pte Ltd. Another good sign is when you start hiring. And the most obvious one — if you think your taxes are too high.
Pte Ltd is more expensive to manage — you have to hire a corporate secretary and file annual returns to ACRA. But taxes are super low thanks to a flat rate and a lot of exemptions. Let’s do the math.
A Sole Proprietor pays Osome it’s S$300 a year. It turns out it’s cheaper to convert after you’ve made more than S$92,727 a year in profit. And if you make S$120,000 a year, you’ll save S$2,550.up to 22%. A Pte Ltd pays 17% flat minus all . Add a corporate secretary to that — with
Converting in reality is closing down your Sole Proprietorship and opening a new company. The only thing you can carry on is the name. Here’s what you need to do:
This article was written by experts at Osome – online Incorporation, Secretary, and Accounting in Singapore. We help entrepreneurs to start and run business and get Employment Passes. We respond fast 24/7 in a secure chat. Learn more and get a free consultation on our site.