Changing a Sole Proprietorship to a LLC in Singapore

A presentation brought to you by Lawyers-Singapore.com

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Opening a Company in Singapore

• Singapore is one of the most suitable destinations for foreign businessmen that want to establish a company in Asia.

• The most employed business vehicle in Singapore is the limited liability company because it is very tax-efficient. 

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Changing Company Types in Singapore

• Foreign enterprisers deciding to open a small company in Singapore usually start with a sole proprietorship.

• Once the business expands, it is advisable to change company types.

• The most common change in company structure is from sole proprietorship or partnership to limited liability company.

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Steps to Changing a Sole Trader to a LLC in Singapore >>

• There is no direct way of transforming a sole proprietorship into a limited liability company (LLC) in Singapore, according to the law.

• The first step towards changing the sole trader into a LLC is to deregister the sole proprietorship. 

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>> Steps to Changing a Sole Trader to a LLC in Singapore

• The second step implies registering a new company as a limited liability company with the Singapore Accounting and Corporate Regulatory Authority.

• Then the activities of the sole proprietorship must be transferred to the new business, while the last step is to notify the Trade Register about the cessation of the sole trader’s activities.

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Deregistration of the Singapore Sole Proprietorship

• Entrepreneurs switching from sole proprietors to limited liability companies are required to deregister from the Companies Registrar within three months after the new company is registered in Singapore.

• ACRA will then notify the owner about the cessation of its activities, after which the owner will be able to transfer the assets of the old business to the new one.

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Transferring Business Assets to the Singapore LLC >>

• Once the change from sole proprietor to limited liability company is completed, the transfer of the old business’ assets can begin.

• The owner is required to transfer the following:

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the assets of the sole proprietorship;

the corporate bank account;

the registered address;

the contracts.

>> Transferring Business Assets to the Singapore LLC

• The assets can be transferred once a resolution has been passed, while the bank account of the sole proprietorship must be closed and then a new one must be opened.

• Also, the limited liability company will be required to apply for additional licenses depending on the activities to be undertaken.

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Assistance in Changing Business Forms in Singapore

• If you want to set up a company and need advice, please contact our law firm in Singapore.

• Our Singapore attorneys will also assist you with the procedure for changing company types.

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Thank you for your attention!

For more information, please contact us at:+ 852 8191 3385

office@lawyers-singapore.com

www.lawyers-singapore.com

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