Partnership Formation for a General Partnership in Singapore
A General Partnership has similar features as a sole proprietorship. The only difference is that there must be more than one (1) registered owners (i.e. partners) of the entity.
A General Partnership is not a recommended way of structuring you business in Singapore, primarily because each partner can be held liable for the actions of another partner. Typically, for an entrepreneur, forming a private limited company is the preferred option.
Overview of Singapore general partnership
- Not considered a separate entity from its partners
- Partners can be held personally liable for the actions of other partners
- Not taxed at the entity level (taxed at partners’ personal income tax rates)