| Benefits/Suitable For | Individual with low risk and low cost business | More than one individual with low risk and low cost business | Active Partners who assume unlimited liability and liability of sleeping partners is limited | The LLP will give the owners the flexibility of operating as a partnership whilst giving them limited liability. It combines the benefits of a partnership with those of private limited companies. | For those who foresee their business going places, who need equity partners, funding and recognition and wish to eventually go public | For Foreign Companies who wish to expand their operations overseas | For those who wish to set up temporary vehicle to conduct research and act as liaison office |
| Disadvantages | Personal Assets Not Protected | Personal Assets Not Protected | Active partners have joint and unlimited personal liability for all of the company’s debts and liabilities | Less Recognised compared to a Private Limited Company | Continuing Compliance Obligations eg Financial Reports, AGMS, etc | Continuing Compliance Obligations eg Financial Reports, AGMS, etc | It is a temporary vehicle and cannot generate revenue |
| Ownership | Foreigners & Corporations (with local manager) and Singapore Residents | Foreigners & Corporations (with local manager) and Singapore Residents | Foreign or local individuals, a local company, a foreign company or another LLP But must have one Manager who is a Singapore Resident | Foreign or local individuals, a local company, a foreign company or another LLP But must have one Manager who is a Singapore Resident | Can be 100% foreign or locally owned but needs a Singapore Resident Director | No ownership but 2 Singapore Resident Agents required | No Ownership but 1 Singapore Resident Representative Required |
| Separate Legal Entity | No | No | No | Yes | Yes | No | No |
| Cap on Number of Members | One | Yes, max 20 | No | No | Yes, max 20 For Exempt Companies | Not Applicable | Not Applicable |
| Minimum Setting up Requirement | One | At least 2 partners | At least 2 partners, one must be an active partner | At least 2 partners | 1 shareholder and 1 director ( both can be same) | 2 Singapore Residents | 1 Singapore Resident |
| Limited Liability | No | No | Only for limited partners | Yes | Yes | Yes | Yes |
| Need for Audited Accounts | No | No | No | No | Yes, for turnover above S$5 Million or Non Exempt Companies | Yes | No |
| Tax Treatment | Same as Personal Income tax. | Partners taxed according to their personal income tax rate | Partners taxed according to their personal income tax rate | Partners taxed according to their personal income tax rate | Taxed at the corporate level, First S$100,000 of net income each year is tax free and the next S$200.000 will be taxed at 9% for new Exempt Companies for first 3 years. Dividends are tax exempt. | Taxed at the corporate level | Not Applicable |
| Cessation of Business upon Death of a Member/Partner | Yes | Yes | Yes | No. The LLP will continue to exist | No. Equity shares go on in perpetuity | No. | Not Applicable |
| Creditors Protection | Protected by unlimited liability of the owner | Protected by unlimited liability of the partners | Protected by the unlimited liability of the general partners, and the claw-back regime for distribution to limited partners | Protected by the claw-back regime for distributions to partners and the need for annual declarations of solvency | Protected by the statutory hurdles put in place to reduce a company's capital | Protected by the statutory hurdles | Not Applicable |