Operating A Biz without a company

[orgasbt]

Dear all,

Can anyone help me.

Pls advise if it's an offence in singapore to operate a "business" without having a company (no even registered as sole-proprietor). If it's an offence, what are the charges like?

Hope to get some infor.

Thanks

[reefer guy]

err...... tax evasion????

bro, btw, pm me ur contact no... need to ask u abt the reflectors....

[tineng]

grey area.....because i think you are operating more as freelancer or such.....but the way you position and sponser this site is giving the impression of operating as a biz becuase you are not only selling your services but also lighting parts.....i think it would be safer to register a biz if you are seriously worried about being knock on the door by the taxman....

[orgasbt]

grey area.....because i think you are operating more as freelancer or such.....but the way you position and sponser this site is giving the impression of operating as a biz becuase you are not only selling your services but also lighting parts.....i think it would be safer to register a biz if you are seriously worried about being knock on the door by the taxman....

Mine is a REGISTERED company. So no problem for me.

Just wondering what will happen if someone operates on such a manner.

err...... tax evasion????

So it's just tax evasion only. That's not too bad. Just have to pay $$$ rite? Any idea how much will it be? Are there any other offences ?????

Is that person who is operating the biz liable for the actions that he took? What if a probem arise, can he just wash his hands off cos he doesnt have a company? What his liabilities?

Thanks

[tineng]

depends....look at some aunties that offer services such as cleaning, full month nanny, bady sitting etc.....in the strictest sense they are running a business, but i don;t think the taxman will chase after them. without a business regisitration, they are in fact liable for unlimited damages so don't think they can wash off just like that.....

acutally, even if it is a limited company, it doesn't mean the owner can get away if there is really serious negligence or criminal intent behind the action of the company.....

[reefer guy]

those freelancers and small biz need not pay tax actually, according to income tax rules below $500,000 annual income need not do so BUT still have to file tax form if you are a registered company.

on the other side of things, if u operate ur biz without a company, anybody can just copy ur products/services/innovations, run away from u when u chase for $$$ or even treat u cheap and try to bargain u cheap and u cant help it coz u r considered doing freelance....

its better to register a company so can get premium payment as well

[hamannbmw]

not forgetting liabilities...

[Marineman]

Dear all,

Can anyone help me.

Pls advise if it's an offence in singapore to operate a "business" without having a company (no even registered as sole-proprietor). If it's an offence, what are the charges like?

Hope to get some infor.

Thanks

I suppose you can do whatever you like as long as the business you plan to do does not require a licence, if you require a license, then you are running the business as a sole proprietor as your name will be in the application form. All income and expenses relating to the business is taxable and needs to be declared. I suppose if you are in certain businesses where the sales tax applies (turnover exceeds certain amount? not sure about Spore laws), then you have to charge a sales tsx (GST).

If you are not a company, you are expose to liabilities as an individual as you are operating as one.

those freelancers and small biz need not pay tax actually, according to income tax rules below $500,000 annual income need not do so BUT still have to file tax form if you are a registered company. Not too sure about this, does it mean GST, I find it hard to believe any inland revenue board will allow people to have 500k income without paying tax.

If you are not operating as a company or partnership or without a license, any income earned will be subject to personal tax unless you chose not to declare. The only catch is that if the business you want to do require a license, then you need to apply for one otherwise you will get a fine/jail, I believe such businesses which requires a licence are professional services or trade which are regulated by the authorities, so what you need to find out is where the business you wants to do require a licence and if you do, then you can decide if you want to register under your name or set up a company to do it.

If you are running a small business with small income, thereotically, you will need to declare your income irregardless of whether you have a licence, if you make a loss, you cannot claim the loss against your income unless you have registered as a sole proprietor with a business licence, so there is no upside for you if you don't have a licence.

However I am sure there are a lot of people who runs small business in the food industries, like making cookies, mooncakes etc during the festive seasons that don't declare, if your business is like this and on a small scale, it is your discretion whether you want to have a licence and declare your income or not, the onus is on you.

[orgasbt]

Can receipts be issused to customers even without a registered company?

[thc]

Guess the only way to find out the seriousness of the offence is .............. to burst the "bubble"........

i wonder ...wat will happen

[Marineman]

Can receipts be issused to customers even without a registered company?

No reason why not. A receipt is a receipt as long as the receipient accepts it. The accountants will accept it though.

[reefer guy]

since im operating my own registered business, i have been informed in income tax that they dont tax below $500,000..... maybe someone need to reconfirm about this....

gst is another application, which u may or may not want to apply for. but bottomline is u will be taxed for your annual income, its whether u want to absorb the whole tax (by not applying gst) or let your clientele pay for it (by applying gst)

once you issued a reciept and you are a tax payer, you would rather apply gst.

i believe any sort of business here in singapore needs a license, even busking needs license

If you are not operating as a company or partnership or without a license, any income earned will be subject to personal tax unless you chose not to declare.

bro, isnt this considered tax evasion???? else everyone else wont register their business and wont declare their income

[Marineman]

bro, isnt this considered tax evasion???? else everyone else wont register their business and wont declare their income

Yes it is. In reality a lot of small partime businesses does not declare their income and take the risks, this is a fact of life and if it's only peanuts, one should not be overly concerned and if it is big businesses, then better declare otherwise the authorities will go after you if you suddenly begin to buy cars, properties etc. But if it is true that less than 500k is tax free, then it makes sense for people to declare their income should they exceeds this level.