A Limited Liability partnership (LLP) is a combination of Limited Liability features of Companies with the Operational flexibility of partnerships. A corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership. LLP was introduced on 11 April 2005.All LLPs must be registered with the Accounting and Corporate Regulatory Authority ACRA).
Characteristics
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The partners can be individuals or companies. There must be a minimum of 2 partners. There is no maximum number of partners in a LLP.
- A LLP is a legal entity (i.e. it can sue or be sued in its own name and can own or hold any property).
- The LLP can be created by registration of a new LLP or by conversion from an existing company or business to an LLP.
- 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.
Who Can Register
Almost anyone or any company can be an owner in a LLP.
There are some exceptions, for instance, undischarged bankrupts and persons convicted of dishonesty may not be allowed to register and/or be appointed as the manager of the LLP.
The local manager must be above 18 years old and one of the following:
- A Singapore Citizen
- A Singapore Permanent Resident
- An Employment Pass holder
- An Approval-in-Principal Employment Pass holder OR
- A Dependant Pass holder
Set Up Costs
- Fees for approval of LLP name: S$15 per name.
- Registration fees: S$150
- Yearly renewal fees: Not applicable.
- Fees for conversion from a business or a company into an LLP: S$100
LLP In Singapore
All LLPs in Singapore must be registered with ACRA. All businesses, whether it’s a one-owner business or a multinational company, must register with the Accounting and Corporate Regulatory Authority (ACRA).The objective of ACRA is to make Singapore the trusted and best place for business and ensure the availability of a responsive and trusted regulatory environment for businesses and public accountants. ACRA believes in a strong commitment to the customers in delivering service excellence in alignment with the vision: "Singapore: The trusted and best place for business".
For further details on ACRA please visit, Accounting and Corporate Regulatory Authority (ACRA)
Exemptions From Registration
Certain Individuals, Professionals and Organizations are exempted from registration.
Individuals Who Are Exempted
Individuals who do not need to register with ACRA include:
- Licensed hawkers
- Domestic craftsmen
- Taxi drivers
- Trishaw riders
- Sampan men
- Farmers
Professionals Who Are Exempted
Professionals such as lawyers and doctors do not need to register with ACRA as they are managed by their respective professional bodies. The Law Society is the governing body for the lawyers in Singapore, which is largely self-regulatory. The Academy of Medicine in Singapore is the governing body for doctors. Its governing constitution is stipulated in Articles 60-77 of the Memorandum and Articles of Association.
Organizations That Are Exempted
Organizations such as statutory boards, mutual benefits co-operatives and charitable institutions that are set up by law also need not register. By law a statutory board is an autonomous government agency established by an act of Parliament that specified the purpose, rights, and powers of the body.
Organizations such as statutory boards, mutual benefits co-operatives and charitable institutions that are set up by law also need not register. By law a statutory board is an autonomous government agency established by an act of Parliament that specified the purpose, rights, and powers of the body.
