Tuesday, December 06, 2005

Q&A: Must a freelancer register a business?

This is an interesting question. To my knowledge, the relevant authorities have never issued a formal position statement on this point.

What the Singapore Business Registration Act says is that every person must register with ACRA before he carries on business in Singapore. "Business" includes every form of trade, commerce, craftsmanship, calling, profession and any activity carried on for the purposes of gain, barring a list of exceptions and exemptions stated in the Act. The list does not include freelancers and independent contractors. Therefore, it must mean that they are required to register.

Have a look here: http://statutes.agc.gov.sg/

Whether the authority actively enforces this interpretation is a matter of policy.

Practically speaking, a freelancer has nothing to lose and everything to gain by registering. It is tempting to want to operate under the radar, especially when one is starting out and not certain of how viable the business will be.

However, it is safe to say that most clients would be more comfortable dealing with a business entity, as the fact of registration lends credibility and an assurance that the owner is acting within the parameters of the law and has nothing to hide.

Imagine for one moment that you have just met 2 freelance writers, and their business cards are side by side before you. One has just the name and contacts of the individual and the designation "Freelance Writer". The other has these details plus the business name, business registration number, and a corporate website address. Which person are you more likely to follow up on?

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