Partnership Formation for a Limited Liability Partnership in Singapore
A Singapore Limited Liability Partnership (LLP) is a type of entity with two or more partners. Under the LLP, a partner is not personally liable for debts or losses incurred by the other partners.
To form a limited liability partnership, you need to have two or more partners at the time of formation. The Singapore Limited Liability Partnership Act does not specifically restrict the LLP to certain classes of professionals only. However, the Limited Liability Partnership is usually ideal for such professions as lawyers, accountants and doctors. Typically for an entrepreneur, forming a private limited company is the preferred option.
Overview of Singapore limited liability partnership
- Considered a separate entity from its partners
- Partners can not be held personally liable for other partners’ actions
- Not taxed at the entity level (profits are taxed at partners’ personal income tax rates)