Partnership Formation for a Limited Partnership in Singapore
A Limited Partnership is a new business entity in Singapore specifically designed for licensed funds and the management of such licensed funds. A limited partnership, as with all partnerships by definition, requires at least two partners.
A Limited Partnership requires a minimum of one general partner and one limited partner. An LP is not a separate legal entity from the partners. As such, the Limited Partnership can not own property in the LP’s name and the partners can be held liable for the LP’s actions. Typically for an entrepreneur, incorporating a private limited company is the preferred option.
Overview of Singapore limited partnership
- Not considered a separate entity from its partners
- Limited partner’s liability is limited to the amount of his agreed contribution. General Partner has unlimited liability
- Partners can be held personally liable for the actions of the partnerships
- Not taxed at the entity level (taxed at partners’ personal income tax rates)