A partnership is a business firm owned by more than one individual or company. A Partnership is a legal contract entered into by two or more persons in which each agrees to furnish a part of the capital and labor for a business enterprise, and by which each shares a fixed proportion of profits and losses. In Singapore, partnerships cannot have more than 20 owners. All partnerships must be registered with the Accounting and Corporate Regulatory Authority (ACRA).
Characteristics
- Owners can be individuals or companies.
- There must a minimum of 2 owners and a maximum of 20.
- A partnership is not a legal entity (i.e. it cannot sue or be sued in its own name and it cannot own or hold any property).
Who Can Register?
- Almost anyone or any company can be an owner in a partnership.
- are some exceptions, for instance, undischarged bankrupts may not be allowed to register such entities in Singapore. If in doubt, please consult a lawyer.
Appointment Of Local Manager
The owners of a partnership must appoint a local manager if none of the partners is "ordinarily resident".
A person is not "ordinarily resident" if the person:
- Does not have a local address and
- Cannot legally remain in Singapore for a long period of time.
The local manager must be above 18 years old and be one of the following:
- A Singapore Citizen
- A Singapore Permanent Resident
- An Employment Pass holder
- An Approval-in-Principal Employment Pass holder
- A Dependant Pass holder
Set Up Costs
Fees for approval of business name: S$15 per name.
Registration fees: S$50
Yearly renewal fees: S$20
Partnership In Singapore
All partnerships 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 Craftsman
- Taxi Drivers
- Trishaw Riders
- Sampan Men
- Farmers
- Private Fish And Prawn Pond Keepers
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.
