Limited Liability Partnership Registration and things to know
If you would like to register a limited liability partnership in Singapore, you will need to know a few important things. Abbreviated as LLP, this means that after registration you can now start operations as a partnership. The most basic requirement is that you must be at least two partners, but there is no limit to the maximum number of partners allowed.
After you start operating, IRAS will consider your business as a partnership. This means that when paying tax, the partners will be taxed individually depending on the stake they hold in the business and the amount of income that they make from the LLP. However, when it comes to the actual operations of the business, it is considered a separate legal individual.
If one partner of the LLP is a company, then the tax that they will pay to the IRAS will be calculated with the current companies’ tax rate and the same applies for individual partners where the amount of tax payable is based on personal income tax rate.
One thing that you should know is that this is called an LLP because the liability of each individual partner stops with him or her. That means that should another partner in the business default on his loan or debt obligations, be accused of fraud or cheating on tax, the other partners will not be held liable for his or her actions. They will be held accountable for their own actions and only their share of the business will be affected.
How can you register an LLP in Singapore?
This should not be hard. Contact a professional filing agent firm in Singapore such as J Accounting Pte. Ltd. that helps with the registration of all manner of business entities, from sole proprietorship to limited liability partnership to private limited companies. They will tell you everything you need to present for a LLP which will include but not limited to the following:
- Two proposed names for your LLP company
- Description of activities that you will be undertaking, utmost 2
- The location of your business office. It must be a physical, registered office address.
- Passport copies for partners and proof of their addresses back in the home country and for the local partners, only their NRIC copies
- NRIC copy for managers. Managers can only be Singaporean citizens or Singapore permanent residents
How much should you pay for the registration of the LLP Company in Singapore? This depends on a few things. For example, the professional firm doing the registration for you will charge its fee, together with the ACRA (Accounting and Corporate Regulation Authority) filing fee. At times, there might be other features for LLP who are foreigners. For example, foreign individuals might need a local address, stamp and even shared printing service. These will cost you more.
Usually, LLP company registration in Singapore is very fast. If all the documentations are in place and there are no further review or checks made by the authorities of Singapore, the LLP should be setup within one-day. Again, this still depends on ACRA approval. If you would like to incorporate a LLP entity, reach out to J Accounting who can assist you with this.
