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Sole Proprietor - ACRA and some questions

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allanyeowjj
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Re: Sole Proprietor - ACRA and some questions

Post by allanyeowjj » Wed, 27 Sep 2017 10:26 pm

I am abit confused. Lets not talk abt the entity name on invoice first. I understand that for Acra business name it is the company name stated on the website that matters. But as with most ecommerce biz, what appears in the website is merely a online shop name like Bags for Sales. Does this represent the company name which in turn Bags for Sale must be registered?

What i am planning now is to register only one business name with Acra using XXXX Group, SP. This business name will also be tied to business bank account. And under this business name, i am going to set up multiple online stores which example the shop name reflected on the website will be something like Bags for Sale, Shoes for Sale etc. All these shop names will be formed under the business name XXXX Group registered with Acra. Of course, if there is invoice, XXXX Group will show as entity. I do not think this is viewed as DBA as i am not getting Bags for Sale and XXXX Group's UEn on invoice. So for my case of having a Group business name with Acra and multiple website shop names, is this allowed

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Re: Sole Proprietor - ACRA and some questions

Post by Strong Eagle » Wed, 27 Sep 2017 11:01 pm

allanyeowjj wrote:So for my case of having a Group business name with Acra and multiple website shop names, is this allowed
Based upon the information you have posted, I would say that this is indeed allowed.


You wrote:
Told them about DBA, they didn't know what it is about. But anyway i asked them again, there is no issue with the registered business name as ABC company and have multiple websites with different website names. It is just the invoice whereby it is best the invoice shows the registered name and UEN number. to avoid confusion.
This seems to imply exactly what you are proposing.
  1. You have a "XXXX Group, SP" master business registered with ACRA.
  2. They have apparently stated to you that the websites can have whatever names you want.
  3. They further state that you comply with the law when your invoices show the registered name of the master business, "XXXX Group, SP".
You seem to be on the track to do exactly this. I only suggested that your invoice also contain "XXXX Group, SP, doing business as Bags for Sale" so that you customers would not be confused. For example, I buy software from a small company but the software order is fulfilled by a different company. My credit card charge is from the fulfillment company, and the invoice from the software company says that my credit card will be billed as the fulfillment company.

So, again, based on what you have written here, and your plans for websites, I'd say you are good to go. You just need to be able to inform your customers that credit card charges will be against "XXXX Group, SP" since that is the only legal registered entity that can accept cards.

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Re: Sole Proprietor - ACRA and some questions

Post by allanyeowjj » Thu, 28 Sep 2017 8:53 am

thank you so much for the great and comprehensive advice, strong eagle.

Now i can't wait to register my own business name and start my chain of online shops.

Hopefully i don't unknowingly brush against the law with Acra by doing so

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Re: Sole Proprietor - ACRA and some questions

Post by allanyeowjj » Thu, 28 Sep 2017 4:00 pm

Hi,

Would also like to know if its illegal, against the law to set up a sole proprietor account with ACRA first while still under employment with company? Just want to get the business name first and be registered, so i can do all the backend work first like business name reg, business bank account opening etc.

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Re: Sole Proprietor - ACRA and some questions

Post by Strong Eagle » Thu, 28 Sep 2017 9:32 pm

allanyeowjj wrote:Hi,

Would also like to know if its illegal, against the law to set up a sole proprietor account with ACRA first while still under employment with company? Just want to get the business name first and be registered, so i can do all the backend work first like business name reg, business bank account opening etc.
Completely legal. Your only questions would be about the policy of your employer. Would they permit you to work at other jobs, and would they consider filing for a SP another job?

I don't know the line of business you are in, and, in my line, it wasn't uncommon to have language in the employment agreement like, "Employee will not undertake any other job or contract while employed without the express permission of management".

But, I doubt anyone would be checking BizFile to see if you formed a business. I'd say you are good to go.

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Re: Sole Proprietor - ACRA and some questions

Post by Strong Eagle » Thu, 28 Sep 2017 9:35 pm

I add this comment: If your business starts to flourish, you really might ought to consider forming a private limited. A pte ltd has more "gravitas", and you might be able to extract better terms from suppliers. If you look around at storefront businesses in Singapore, many of them (maybe even a majority) are styled as "pte ltd".

Just food for thought.

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Re: Sole Proprietor - ACRA and some questions

Post by allanyeowjj » Fri, 29 Sep 2017 7:01 am

That is if i have the capital to buy/rent a storefront and there is market in singapore to buy in bulk from suppliers.

Who knows i may just end up having problems to pay medisave

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Re: Sole Proprietor - ACRA and some questions

Post by sundaymorningstaple » Fri, 29 Sep 2017 8:46 am

allanyeowjj wrote:That is if i have the capital to buy/rent a storefront and there is market in singapore to buy in bulk from suppliers.

Who knows i may just end up having problems to pay medisave
You don't need a storefront to be a Pte Ltd Company. Additionally, after setting up the Pte Ltd, you no longer need to pay medisave or CPF unless you draw a salary (then you will have to pay both and not just medisave). However, you don't need to draw a salary, you can draw it a director's fees I believe. You will still need to pay taxes on the director's fees, however. and the net profit of the company will also have to pay taxes (after a couple of years of pretty decent offsets).

My answers are based on you being a SG citizen/PR. SE can correct me if I'm off on this.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Re: Sole Proprietor - ACRA and some questions

Post by allanyeowjj » Fri, 29 Sep 2017 9:04 am

oh i mean as a Sole proprietor if i end up having problem paying medisave, then dont even need to talk abt set up a Pte Ltd. Much more completed tax filings and Acra procedures if its Pte Ltd also. I just want to run my own busienss.

I would like to add on one more point abt the HDB home office scheme. This is compulsory right that i have to register my residential address as home office with HDB also? Or its just an option to further "legalise" myself to do business using the address registered with ACRA?

So far in my business planning, i have only manage to come up with the below regulation that i need to register my busienss with.
1. ACRA
2. IRAS
3. CPF
4. HDB
If i miss out any, please let me know

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Re: Sole Proprietor - ACRA and some questions

Post by allanyeowjj » Fri, 20 Oct 2017 8:40 pm

Hi everyone

Sorry that i got to post this again. Is there anyone who knows or who is having the home office scheme with hdb here?

As i am in the midst of planning to set up a Ecommerce dropship business as a sole proprietor, i will not hold any inventory, warehouse. If i register my business with ACRA using the residential address, do i still have to register with the hdb home office scheme? As i hold no inventory in my online stores business, considering i work the typical 9-5pm job timing outside, do i still have to register with the home office scheme? how does this home office scheme determine working at home or working in cafe with wifi?

thanks

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