|
Quite common for Sole proprietors and partnerships |
|
|
|
|
Written by Wilfred Ling
|
|
Wednesday, 01 October 2008 |
|
Business can be setup either as Sole proprietorship or Partnership. The single person of a sole proprietor has absolute say in the running of the purpose. Partnerships are similar but can only allow 2 - 20 partners. Partnerships do not have any identity like a company. Many professionals are either sole proprietors or in partnerships. Many accountants are one man show. They may prefer to have a simple sole proprietor setup. If they wish to work together with another person, partnership is commonly used. Many general practitioners are also sole proprietors. However for the purpose of tax planning purpose, it is very common for doctors to setup a holding company owning the clinics of which the directors of the clinics are the doctors and their families. Under normal circumstances, registration as a sole proprietor or partnership is required from ACRA. There are exemptions – for example lawyers and doctors do not need to register. Licensed Financial Advisers (representatives) are professionals licensed under the Financial Advisers Act. While they are professional in their own field of work, they must be a representative of a firm which itself need to be licensed by MAS. Most licensed financial advisers are sole proprietors as far as taxation is concerned.
|
