An LLP combines the features of a Limited Limited Company and a Partnership. It provides the legal status of a typical private limited company while offering the flexibility and simplicity of a partnership. LLPs are the preferred business entity for professionals such as lawyers, accountants, engineers, architects and other such consultancy, advisory and management firms.
Who can be a partner?
- Residents (Singapore citizens, Permanent Residents or Work Visa holders)
- Corporations (local or foreign companies)
- Other LLPs
Features of a LLP
- It has a separate legal entity therefore individual partners are not personally liable for losses or debts
- Each Partner has limited liability according to his share of the Partnership and personally liable for his own misdeeds
- Each partner is not liable for any misdeeds of the other partners
- Minimum of 2 partners, no maximum limit
- Partners can be individuals or body corporate (company or other LLP)
- At least ONE local resident manager must be appointed
- Annual filings are NOT required for LLPs.
- LLPs are not required to pay corporate tax. Instead each partner is taxed personally under Personal Income Tax.
- LLPs survive the death of its partners. Ownership can be transferred or willed as inheritance. Changes in ownership of the partnership does not affect it’s status, rights or liabilities.