Business set-up for limited liability partnership

Business Introduction

A Limited Liability Partnership (“LLP”) is a hybrid of “Partnership” and “Private Limited Company”. It is a type of business structure where 2 or more partners form an entity which has its own separate legal identity like a Private Limited Company. It has rights to hold property, sued or be sued under its own name and is typically adopted by professionals such as doctors, lawyers and architects.

Partners in LLP have limited liability and will not be personally liable for the business debts incurred except for those arising from his own wrongful act or negligence. Similar to Sole Proprietor / Partnership, business profits will be taxed at partners’ personal income tax rate and is generally also harder to secure loans from financial institutions which is required for business expansion.

Apart from the statutory requirement to keep the accounting records, LLP must also file an Annual Declaration of solvency to the ACRA which will be made available to the public.

Minimum Requirements

• At least 2 Partners
• Partner must be at least 18 years of age
• Registered Address
• 1 Appointed Local Manager

Incorporation Fees

Things to prepare