Asia Corporate Advisory

incorporation | Singapore Resident | Limited liability partnership

Limited Liability Partnership

You are at: Incorporation | Singapore resident | Limited liability partnership (LLP)

 

Overview. Package. Process. FAQs.

 

Limited liability partnership (LLP)

LLP was introduced in Singapore in 2005 through enactment of Limited Liability Partnership Act. Registering a LLP gives owners the flexibility of operating as a partnership while enjoying many of the benefits that come with a corporate body like a private limited company. A LLP is primarily meant for carrying a profession (e.g. accountants, law firms, architects, etc.) where two or more professionals would like to build a joint practice in a common field. The owners must enter into detailed agreements about how the profits and management responsibilities are divided. It can get very complicated and generally requires the services of a lawyer to draw up the agreement. Partners in a limited liability partnership are usually responsible for cultivating their own clients based on the partner’s specific area of focus. A LLP must have at least two partners at all times. An LLP is not suited for a business that carries a trade, where incorporating a private limited company is the preferred option. 


package

S$ 450 Nett, inclusive of the following:

  1. Business name check and reservation
  2. Business registration fees
  3. Preparation of registration documents
  4. Electronic certificate of registration
  5. Bank account opening assistance
  6. Business rubber stamp
  7. Free 1 month cloud accounting subscription to track business performance and comply with tax and accounting

PROCESS

Step 1: Submit the details below

Let us know that you wish to proceed forward with us by completing the form below and clicking on "Submit" button. Upon receipt of your request, our service partner will follow-up with you to clarify any questions you might have and to advice you of the next steps.

Step 2: Collate your documents

We will check the availability of the proposed business name. We will also send you the relevant forms for you to furnish the required details. Supporting documents will be required to facilitate the due diligence work and preparation of the registration documents accordingly.

Step 3: Make payment

Upon receipt of the completed registration details form and due diligence clearance, we will send you an invoice for our services. We will proceed to register the business once we received your payment for our services. We accept bank transfer and local cheque.

Step 4: Register business

Upon the signing of the registration documents, we will proceed to register the business with Accounting and Corporate Regulatory Authority of Singapore (ACRA). Once the business has been incorporated, you may proceed to open a bank account for your business.


FAQ

1. What are the documents and information required for registration of a LLP?

  • For each Singapore resident partner:
    • Copy of Singapore IC; and
    • Copy of passport if the individual is not a citizen of Singapore

2. What are the information required to register a LLP in Singapore?

  • Proposed LLPname
  • Registered address in Singapore
  • Brief description of the business activities
  • Partner's particular (must be age 18 years old or above)
  • Consent to Act as Manager and Statement of Non Disqualification to Act as Manager

3. How long does it take to register a LLP in Singapore?

  • The actual registration of a sole proprietorship can be accomplished within a day after our due diligence clearance. However, the overall process can take anywhere from one day to few weeks depending on the furnishing and signing of the registration documents required

4. What are the pros and cons of registering a LLP?

  • Advantages include:
    • Separate legal entity - partners are not personally liable for losses or debts, or wrongful acts of other partners. However a partner is personally liable for claims resulting from his personal wrongful acts or omissions.
    • Perpetual succession. Any change in the partners of a LLP does not affect its existence, rights or liabilities.
    • Registration and compliance costs is low
    • Less administrative duties
  • Disadvantages will be:
    • Partners of the LLP need to agree on a set of partnership agreement to define profit sharing, duties and responsibilities of each partner
    • Each partner can bind the LLP to business agreements without the consent of the other partners
    • LLP lack the ease of ownership transfer that a company structure provides
    • LLP is not portrayed as distinguished or prestigious as a private limited company
    • No tax exemption available to LLP, which otherwise is available to that of a company
    • Each partner is taxed on their share of the profits as per the personal income tax rates

5. What if there is no partnership agreement drafted and entered into?

  • The mutual rights and duties of the Singapore LLP and its partners are governed by the limited liability partnership agreement. In the absence of agreement as to any matter, the First Schedule of the Limited Liability Partnership Act 2005 shall apply

6. What are the liabilities to the LLP and its partners in its course of business?

  • A partner during the course of the business is personally responsible for liabilities that arise due to his act of commission, omission, or negligence. Claims for liabilities can be made against him and his personal assets. However other innocent partners and their personal assets will remain insulated from such liabilities and their liabilities will be limited only to the capital contributed by them to the LLP
  • If a partner becomes liable to any person or company through his acts in the course of business, the LLP is liable to the same extent as the partner. Therefore claims can be made against an LLP to the full extent of its assets

Register Your LLP Now!

 
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