A Singapore Limited Liability Partnership (LLP) is the perfect blend of a partnership with a private limited company setup.
The advantages of a Singapore Limited Liability Partnership are as follows:
- Separate legal entity, hence partners are not personally liable for losses or debts, or wrongful acts of other partners. However a partner is personally liable for claims against his personal wrongful acts or omissions
- Has perpetual succession. Any change in the partners of a LLP does not affect its existence, rights or liabilities
- Compliance requirements are simpler as compared to those of a private limited company
- No annual returns filing required, except for income tax
The disadvantages of a Singapore Limited Liability Partnership are:
- Constraints in transfer of ownership
- Does not command a distinguished image as a private limited company.