Starting a Limited Liability Partnership (LLP) in Singapore is a straightforward yet impactful move for business owners. This structure combines the flexibility of a partnership with the protection of limited liability, making it an ideal choice for professional services or smaller firms with multiple partners. But where do you begin, and what should you keep in mind to set up your LLP for success? This guide covers each step in plain, actionable terms, so you can get your LLP off the ground efficiently. Let’s dive into how you can set up your Limited Liability Partnership in Singapore—and why Simplified Asia makes it easier than ever.
An LLP gives you the flexibility to run your business as a partnership but with liability protection, meaning each partner’s personal assets are shielded from the debts and liabilities of the partnership. This blend of security and freedom is particularly attractive for professional groups like law firms, accounting firms, and consulting agencies, among others. Plus, the registration process is relatively quick and cost-effective—especially if you go through a reliable Incorporation Services Provider.
The first step is one of the most exciting: choosing your business name. It’s more than just a name; it’s your brand identity! Singapore’s Accounting and Corporate Regulatory Authority (ACRA) requires every LLP name to be unique and not similar to any existing business name or trademark in Singapore. Use ACRA’s online BizFile+ system to check if your desired name is available. Once approved, your name is reserved for up to 120 days—giving you ample time to complete registration.
Once your name is secured, it’s time to get registered. Head over to ACRA’s BizFile+ portal, where you’ll file your application for LLP registration. If you’re partnering with a trusted Incorporation Services Provider like Simplified Asia, they can handle this entire process, ensuring each step aligns with regulatory standards.
Here’s what you’ll need to provide for the registration:
After submitting these details, ACRA generally approves the registration within hours, provided all documents and information are in order. With Simplified Asia, you won’t have to worry about these fine details; they’ve got it covered!
Running an LLP in Singapore comes with shared responsibility. Each partner holds a certain level of liability for business decisions but isn’t held accountable for other partners’ misconduct or negligence. By defining each partner’s role and responsibilities early on, you can avoid potential conflicts down the line. A formal LLP agreement is highly recommended and can include:
Creating an LLP agreement might seem intimidating, but here’s where Simplified Asia shines—providing you with templates and guidance that ensure you cover all bases, from responsibilities to conflict resolution protocols.
A separate business bank account is crucial for LLPs, keeping your finances organized and simplifying tax filings. Most major banks in Singapore offer specialized accounts for LLPs. When choosing a bank, consider factors like account maintenance fees, minimum balances, and transaction costs. Having a business bank account also adds credibility and makes it easier for partners to manage their finances effectively.
Compliance is where many new LLPs get tripped up. In Singapore, LLPs have specific filing requirements, including submitting an Annual Declaration of Solvency or Insolvency and notifying ACRA of any changes to the LLP’s structure, such as partner exits or changes in business address. Staying compliant isn’t just a formality—it’s essential for maintaining your LLP’s good standing.
With Simplified Asia’s compliance services, you can stay ahead of deadlines without breaking a sweat. Their experts help you navigate all regulatory obligations, from annual filings to ad-hoc changes, so you can focus on growing your business rather than handling paperwork.
Here’s some good news: LLPs in Singapore aren’t taxed at the entity level! Instead, each partner is taxed individually based on their share of the LLP’s income. This taxation model gives LLP partners some flexibility in tax planning, especially if they are eligible for Singapore’s personal income tax reliefs. But remember, partners are still responsible for filing their personal tax returns, and each partner’s income from the LLP must be reported accurately.
Simplified Asia’s Incorporation Services go beyond registration. Their support covers ongoing tax compliance, making sure all partners meet their tax obligations seamlessly.
An LLP in Singapore must appoint at least one manager who is ordinarily a resident (i.e., a Singapore Citizen, Permanent Resident, or holder of a valid work pass). This person oversees regulatory filings and is responsible for the day-to-day administration of the LLP. Many LLPs also appoint an external firm as their manager to ensure compliance with ACRA’s requirements.
Simplified Asia offers you a dependable corporate secretarial partner, meaning your compliance management is not just handled, but optimized. This includes notifying ACRA of any updates in partnership structure, managing annual declarations, and handling administrative duties.
Setting up an LLP in Singapore doesn’t have to be daunting or time-consuming. At Simplified Asia, we understand that your time is precious and that navigating ACRA’s requirements can be overwhelming. We’ve built our Incorporation Services to offer you a comprehensive, dependable partnership from day one. Whether you’re naming your LLP, filing your first Annual Declaration, or managing partner changes, Simplified Asia takes care of the heavy lifting, so you can put your energy where it matters most—on your business’s growth.
Don’t let the fine print hold you back. Simplified Asia is here to turn your vision into a fully compliant LLP. Reach out to one of our experts, and experience the ease of Incorporation Services designed for success.
