A partnership is a business firm formed by at least two partners. There are three types of partnerships in Singapore: General Partnership, Limited Partnership (LP) and Limited Liability Partnership (LLP). Amongst them, LLP is the most attractive vehicle to form a partnership.
Introduced in Singapore in 2005, Limited Liability Partnership (LLP) offers owners the flexibility of operating as a partnership while having a separate legal identity like a private limited company. This means that the LLP is seen as a corporate body and has a legal entity separate from its partners, and its partners have limited liability. The LLP also has perpetual succession, thus allowing changes of partners without affecting its existence, rights or liabilities. It can sue or be sued, and can own property in its name.
An LLP can be formed with at least two partners, with no maximum number of partners. Profits distributed are taxed at the partners' personal income tax rate for an individual partner, or corporate tax rate for corporation partner
The LLP structure is suitable for professional firms such as law and accountancy.
VOPlus can advise you on the most suitable type of business entity for your business and help you convert a private limited company in Singapore promptly. Contact us today for a consultation!