Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a perfect match of a partnership with a private limited company setup. LLP gives owners the flexibility of operating as a partnership while having a separate legal identity like a private limited company. There must be a minimum of 2 partners and no cap on the maximum number of partners in a LLP.
Foreign individuals and companies can form a LLP but must appoint a local manager. Citizens, Residents, Employment Pass holders, local companies can register a LLP.
Minimum of 2 partners but no cap on the maximum number of partners in a LLP.
LLP are required to have a Local Registered Address (P.O. Box are not allowed).
For tax purposes, each partner will be taxed on his or its share of the income from the LLP. Where the partner is an individual, his income from the LLP will be taxed at personal income tax rate. Where the partner is a company, its income from the LLP will be taxed at corporate tax rate.
Limited liability – The personal assets of the partners are protected. In addition, owners are not personally accountable for the wrongful acts of other owners. However, partners can be personally accountable for debts and losses resulting from their own careless actions.
Perpetual succession – Any changes in the LLP (e.g. resignation or death of partners) do not affect its existence, rights or liabilities.
Easy to administrate – Like partnerships, there is no need to audit or file annual returns with ACRA. However, the appointed manager must make an Annual Declaration to ACRA stating whether the LLP is able to pay its debts as they become due in the normal course of business.
More attractive to investors – Investors may be more willing to join as silent partners as liability for partners is limited.
Compared to sole-proprietorships and partnerships, LLPs have more formalities and procedures to comply with.
LLP is a new business structure and many of the legal and tax issues have not yet been fully resolved.
Our Registration FeeLimited Liability Partnership (LLP) S$480.00
Singapore Company Name Reservation
Government Registration Fees
Preparation of Registration Documents