Regarded as one of the top places in ease of doing business, it’s no surprise that even foreigners are keen on starting a business in Singapore. It is also widely known as the world’s fourth leading financial centre. What’s more, the little red dot is considered fairly corruption-free as compared to the other developed countries. If you are looking to start your company in Singapore you will have to first choose a business entity. There are basically three types of partnership formation - (1) General Partnership, (2) Limited Partnership, and (3) Limited Liability Partnership. Amongst the most popular ones, Limited Liability Partnership is famous among the millennial. A Singapore Limited Liability Partnership (LLP) is the perfect blend of a partnership with a private limited company. 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 an LLP.
Features of an LLP in Singapore
- It is a separate legal entity
- At least two partners are mandatory. There is no maximum limit
- Partners can be individuals or a corporate entity
- No requirement of filing annual returns for LLPs except for income tax
- At least one manager is required who is an individual ordinarily resident in Singapore
- Partners are personally liable for debts and losses resulting from their own wrongful actions
How to Set Up an LLP in Singapore?
A limited liability partnership is registered with the Accounting and Corporate Regulatory Authority (ACRA) of Singapore. The process is simple and straight-forward and can be done within the duration of one week. The process includes the following steps:
- The first step is to select a proper name for the company and get it approved from ACRA. If all goes well, the name is approved within a day after a registration fee is paid
- The next step requires the LLP Company to register online via BizFile with ACRA. You must attach all the required documents with it
- The authorities will go through your application and documents and if everything is authentic, they will send an email notification confirming the Singapore LLP registration. A business profile containing the registration details can be obtained as a softcopy via email from ACRA upon successful registration of the LLP. Softcopies are usually sufficient to all purposes in Singapore
Also, remember that you have to notify ACRA of changes to registered particulars such as a change of name or a change of partner/manager. If all the aforementioned steps are followed correctly, your company registration is possible in less than a week. Once the LLP registration is completed successfully the partners of LLP will not be liable personally for any business debts incurred by the LLP. A partner may, however, be held personally liable for claims for losses resulting from his own wrongful acts or omissions, but will not be held personally liable for such wrongful acts or omissions of any other partner of the LLP.
Documents Required to Register an LLP in Singapore
- Proposed name of the Limited Liability Partnership
- Particulars of the LLP partners/managers (foreign passport or Singapore ID)
- Residential address of the LLP partners/managers
- Consent to Act as Manager and Statement of Non-Disqualification to Act as Manager
- If the partner is a company: Registration details of the company
- Declaration of compliance
- Registration details of the company acting as LLP’s partner (registration number, jurisdiction, registered address, etc.)
Once the registration is completed, you can kick-start your business in Singapore. Nevertheless, after starting the business activity, an LLP is required to keep accounting records, profit and loss account, and balance sheets in a proper manner, so that will sufficiently explain the transactions and financial position of the LLP. In the event the LLP does not do this, the LLP and every partner can be prosecuted, and a penalty or a fine or imprisonment, or both, can be announced.
If you have understood all the steps related to the business set up in Singapore and are keen on starting your Limited Partnership in Singapore, then you can take help of an advisor who is well aware of this process to make it easier than it already is. We at Business Setup Worldwide can help you start your company in Singapore. Contact us today to know more.