Singapore Limited Liability Partnership
A Limited Liability Partnership (LLP) is a perfect blend of a Partnership with Private Limited Company setup.
An LLP gives its owners the flexibility of operating as a Partnership while having a separate legal identity like a Private Limited Company. This type is highly suitable for individuals engaged in professional services such as lawyers, architects, accountants and management consultants. Singapore citizens, residents, and employment pass holders can register a LLP. Foreign individuals and companies may also register a LLP but must appoint a local manager.
Rikvin is Singapore’s leading specialist in company incorporation. You can engage Rikvin to assist you with the formation of a LLP with ACRA.
Features of a LLP
- It has a separate legal entity
- Partners have limited liability
- Minimum of 2 partners, no maximum limit
- Partners can be individuals or body corporate (company or other LLP)
Summary of Setup Requirements for a LLP
- Minimum 2 Partners
- Minimum one manager who must be a Singapore resident
- A Singapore registered office address
Advantages of a Singapore Limited Liability Partnership
- 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.
- It has perpetual succession. Any change in the partners of a LLP does not aff ect its existence, rights or liabilities.
- Compliance requirements are simpler as compared to private limited company.
- No annual returns fi ling required of LLPs, except for income tax.
Disadvantages of a Singapore Limited Liability Partnership
- Constraints in transfer of ownership
- Does not command a distinguished image as a private limited company.
Tax and Singapore LLP
Singapore LLP, though a tax resident, is not considered as a company entity; therefore its profit is taxed at personal income rate. In the event where a partner is a company, its share of profit will be taxed at tax rate for companies.
If you are a Singapore resident and you want to set up a company, you will need to do the following:
- Come to our office and we can help you register with ACRA in less than an hour. Please see Process for documents required for registration of LLP.