{"id":1075,"date":"2023-06-04T09:06:50","date_gmt":"2023-06-04T09:06:50","guid":{"rendered":"https:\/\/opencompanysingapore.com\/change-a-sole-trader-into-llc-in-singapore\/"},"modified":"2023-07-11T12:06:31","modified_gmt":"2023-07-11T12:06:31","slug":"change-a-sole-trader-into-llc-in-singapore","status":"publish","type":"post","link":"https:\/\/opencompanysingapore.com\/change-a-sole-trader-into-llc-in-singapore\/","title":{"rendered":"Change a Sole Trader into LLC in Singapore"},"content":{"rendered":"\n<p>Most foreign enterprisers who set up businesses in Singapore start with small companies, usually under the form of&nbsp;<strong>sole proprietorships<\/strong>. This type of structure has many benefits among which the simple registration process with ACRA and the low maintenance costs. However, there are also certain drawbacks when&nbsp;<strong><a href=\"https:\/\/www.opencompanysingapore.com\/establishing-a-sole-trader-in-singapore\" target=\"_blank\" rel=\"noreferrer noopener\">establishing as a sole trader in Singapore<\/a><\/strong>, especially related to the liability of the business owner which is unlimited.<\/p>\n\n\n\n<p>When the venture start registering more profit than expected, most investors&nbsp;<strong>consider changing the sole trader into a limited liability company (LLC) in Singapore<\/strong>. Below, our&nbsp;<strong><a href=\"https:\/\/www.opencompanysingapore.com\/about-us\" target=\"_blank\" rel=\"noreferrer noopener\">Singapore company formation representatives<\/a><\/strong>&nbsp;explain the process of&nbsp;<strong>changing a sole proprietorship into a LLC<\/strong>.<\/p>\n\n\n\n<p>We invite you to watch our video on how to&nbsp;<strong>change a sole trader into a LLC in Singapore:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-4-3 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Change a Sole Trader Into LLC in Singapore\" width=\"840\" height=\"630\" src=\"https:\/\/www.youtube.com\/embed\/f0HWiF0iDK4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #002e5b;color:#002e5b\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #002e5b;color:#002e5b\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/opencompanysingapore.com\/change-a-sole-trader-into-llc-in-singapore\/#de-registering-a-sole-proprietorship-%e2%80%93-a-procedure-explained-by-our-singapore-company-formation-consultants\" title=\"De-registering a sole proprietorship &#8211; a procedure explained by our Singapore company formation consultants\">De-registering a sole proprietorship &#8211; a procedure explained by our Singapore company formation consultants<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/opencompanysingapore.com\/change-a-sole-trader-into-llc-in-singapore\/#registering-the-singapore-llc\" title=\"Registering the Singapore LLC\">Registering the Singapore LLC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/opencompanysingapore.com\/change-a-sole-trader-into-llc-in-singapore\/#transferring-the-assets-of-the-sole-trader-to-the-singapore-llc\" title=\"Transferring the assets of the sole trader to the Singapore LLC\">Transferring the assets of the sole trader to the Singapore LLC<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"de-registering-a-sole-proprietorship-%e2%80%93-a-procedure-explained-by-our-singapore-company-formation-consultants\"><\/span><strong>De-registering a sole proprietorship &#8211; a procedure explained by our Singapore company formation consultants<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There is no direct process of&nbsp;<strong><a href=\"https:\/\/www.opencompanysingapore.com\/how-to-change-your-business-structure-in-singapore\" target=\"_blank\" rel=\"noreferrer noopener\">changing company types in Singapore<\/a><\/strong>, therefore when considering&nbsp;<strong>switching from a sole trader to a LLC&nbsp;<\/strong>the business owner must first de-register from ACRA.<\/p>\n\n\n\n<p>This process is quite simple and requires filing a petition with the Trade Register. ACRA will erase the sole trader from its registers within 3 months. During this timeframe, the former&nbsp;<strong>sole trader must register the LLC<\/strong>&nbsp;and transfer the assets of the old business to the new one.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"registering-the-singapore-llc\"><\/span><strong>Registering the Singapore LLC<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When&nbsp;<strong>converting a sole trader into a Singapore LLC<\/strong>, the&nbsp;<strong><a href=\"https:\/\/www.opencompanysingapore.com\/set-up-limited-liability-company-in-singapore\" target=\"_blank\" rel=\"noreferrer noopener\">company formation process of the limited liability company<\/a><\/strong>&nbsp;should start right after the petition for de-registering the sole trader has been filed. The business owner can keep the trade name of the old company as long as he or she files a No Objection Letter with ACRA.<\/p>\n\n\n\n<p>Our&nbsp;<strong><a href=\"https:\/\/www.opencompanysingapore.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">company formation experts in Singapore<\/a><\/strong>&nbsp;can help with the&nbsp;<strong>registration of a LLC<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"transferring-the-assets-of-the-sole-trader-to-the-singapore-llc\"><\/span><strong>Transferring the assets of the sole trader to the Singapore LLC<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The transfer of assets when&nbsp;<strong>changing a sole proprietorship into a LLC<\/strong>&nbsp;must be completed within 3 months, before the sole trader is stricken off the Trade Register. The following can be transferred to a LLC after&nbsp;<strong><a href=\"https:\/\/www.opencompanysingapore.com\/company-liquidation-in-singapore\" target=\"_blank\" rel=\"noreferrer noopener\">closing a sole trader in Singapore<\/a><\/strong>:<\/p>\n\n\n\n<ul>\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the existing assets which can be converted into the share capital of the company;<\/li>\n\n\n\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the bank account;<\/li>\n\n\n\n<li>&#8211;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the contracts which have not expired.<\/li>\n<\/ul>\n\n\n\n<p>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.&nbsp;<\/p>\n\n\n\n<p>It should be noted that the newly incorporated LLC will have to undergo the licensing phase, as existing business licenses cannot be transferred from the sole proprietorship.<\/p>\n\n\n\n<p>For full information on how to&nbsp;<strong>change business forms<\/strong>&nbsp;or if you need assistance to&nbsp;<strong>open a Singapore company<\/strong>, please&nbsp;<strong><a href=\"https:\/\/www.opencompanysingapore.com\/contact\" target=\"_blank\" rel=\"noreferrer noopener\">contact us<\/a><\/strong>.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Most foreign enterprisers who set up businesses in Singapore start with small companies, usually under the form of&nbsp;sole proprietorships. This type of structure has many benefits among which the simple registration process with ACRA and the low maintenance costs. However, there are also certain drawbacks when&nbsp;establishing as a sole trader in Singapore, especially related to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":252,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1079,584,9,1080,8,11],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Change a Sole Trader into LLC in Singapore<\/title>\n<meta name=\"description\" content=\"Find here how to switch a sole proprietorship into a LLC in Singapore. 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