How To Setup a Limited Liability Partnership

by

Shayne Hughes

Singapore limited liability partnership is a combination of a partnership with private limited company setup. A LLP gives owners the flexibility of operating as a partnership while having a separate legal identity like a private limited company. This type is applicable 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.

The following are the features of a Singapore limited liability partnership:

It has a separate legal entity

Partners have limited liability

Can sue or be sued in its own name

Can own property

At least two partners, no maximum limit

Partners can be individuals or body corporate (company or other LLP)

In addition, these are the advantages of a limited liability partnership:

It is a body corporate and has legal personality separate from its partners

It 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 private limited company

No annual returns filing required of LLPs, except for income tax

Partners not personally liable for debts and losses of LLP incurred by other partners

Entrepreneurs should also note the disadvantages of establishing a limited liability partnership:

Profits taxed at partners personal income tax rates, therefore, not eligible for tax incentives or exemptions

The partners of LLPs own the assets of the business personally, and therefore personally liable for debts and losses resulting from their own careless actions

The following requirements should be complied for LLP:

Minimum 2 Partners

Minimum one manager who must be a Singapore resident

A Singapore registered office address

Rikvin, a leading business registration firm in Singapore can help you register a LLP with ACRA within one hour provided all required documents are in place. Once approved, ACRA sends out a confirmation of registration via email. The registration is valid for one year and subject to an annual renewal.

Rikvin has been assisting clients from all over the globe in registering their preferred business structure from sole proprietorship to

Singapore limited liability partnership

and corporation. Our success rate is phenomenal, and almost all of our enterprise clients have entrusted us, with the routine management tasks such as bookkeeping and secretarial services and we continue to impress them beyond our promise.

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