Due to their similar names, some may confuse this business entity with a general partnership or a limited liability company. But this one is a unique structure on its own. Known as LLP for short, a limited liability partnership is a formal partnership that is a vehicle for business in Singapore.
This is probably the most apparent characteristic out of all—it is even mentioned in its name. Members of a LLP can enjoy limited liability, which means that each partner’s liabilities are only limited to a certain extent or a fixed amount. In this way, it is legally impossible for partners to be held personally liable for obligations beyond the contributions given by them. Should the company incur any debts or negative business transactions, the partners’ personal assets will not be affected, unlike in other enterprises like sole proprietorship.
One of the main reasons why potential business owners are attracted to the framework that a LLP has is due to its flexibility as a separate legal entity. This structure gives companies the flexibility of operating as a partnership while enjoying the benefits of a separate legal entity like that of a company.
Legally, having perpetual succession as a company ensures the continuation of the business despite the death, bankruptcy, change, or exit of any partner. By definition, perpetual succession is described as ‘the continued existence of a corporation until it is legally dissolved’.
When registering as a partnership, you need to specify which type you want to set up as there are various partnership structures. In Singapore, there are three different brackets: general partnership, limited partnership, and limited liability partnership.
Registration for any type of business structure in Singapore should be made with the Accounting and Corporate Regulatory Authority (ACRA). In order to save time during the registrations process, make sure that you have met all the legal requirements and prepared all the documents required for a swift application.
To register as a LLP:
In general, LLPs have lesser compliance requirements, making the process rather straightforward. In fact, it can be condensed in two main steps: reserving the name of your LLP and followed by registering the entity once the name has been approved.
Here are some of the necessary documents that you need to prepare prior to registration:
After limited liability partnership registration, consider opening a corporate account for your business. Regardless of whether you’re in Singapore or anywhere else in the world, having a business account as an LLP will grant you more credibility in the market and shows that your company is fully operational. Some good examples of suitable bank accounts for LLPs include the Aspire Business Account, the Maybank FlexiBiz Account, as well as the UOB One Account.
To take your business incorporation to the next level, Aspire and Osome have partnered together to make the process of setting up your business more seamless than ever. By enabling same-day incorporation along with business account opening services, entrepreneurs can eliminate multiple laborious tasks like taxation and accounting, routine annual filing, and even your entire company registration.