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Limited Liability Partnership (LLP)

Limited Liability Partnership (LLP)

Company formation in Singapore

Best Answer

The LLP is best suited for: Professional services firms (law, accounting, consulting), Joint ventures between two or more parties, Partnerships that want liability protection without full corporate compliance. An LLP is tax-transparent in Singapore. The LLP itself is not taxed; instead, each partner reports their share of the LLP's income on their personal or corporate tax return. Individual partners are taxed at Singapore's progressive personal income tax rates (0โ€“22%), while corporate partners are taxed at the corporate rate of 17%. Partners who are not tax resident in Singapore are taxed only on Singapore-sourced income.

Who this is for
  • Professional services firms (law, accounting, consulting)
  • Joint ventures between two or more parties
  • Partnerships that want liability protection without full corporate compliance

Key Facts

Min. Shareholders2
Max. ShareholdersUnlimited
Min. Directors0
Minimum CapitalNone
LiabilityLimited โ€” partners are not personally liable for the debts of the LLP
Setup Timeline1โ€“2 business days
Annual CostSGD 1,500โ€“4,000

Step-by-Step Formation Process

1

Reserve an LLP name

Apply for name approval through BizFile+. The name must end with "LLP" or "Limited Liability Partnership" and cannot be identical to an existing registered entity.

2

Prepare the LLP agreement

Draft a partnership agreement covering profit-sharing, roles, decision-making processes, and exit provisions. While not mandatory to file, a written agreement is strongly recommended. Gather KYC documents for all partners.

3

Register with ACRA

Submit the registration via BizFile+ with details of at least two partners, the LLP manager (at least one must be a Singapore resident), the registered office address, and the SGD 115 filing fee.

4

Post-registration compliance

Maintain proper accounting records, file an annual declaration of solvency or insolvency with ACRA, and ensure at least one manager is ordinarily resident in Singapore at all times.

Required Documents

  • Passport copies of all partners
  • Proof of residential address for all partners
  • Registered office address in Singapore
  • Consent-to-act forms for LLP managers
  • LLP agreement (recommended but not filed with ACRA)

Cost Overview

Cost Breakdown (USD)
Annual Cost
SGD 1,500โ€“4,000
Country Formation Range
SGD 800โ€“3,000

Tax Treatment

An LLP is tax-transparent in Singapore. The LLP itself is not taxed; instead, each partner reports their share of the LLP's income on their personal or corporate tax return. Individual partners are taxed at Singapore's progressive personal income tax rates (0โ€“22%), while corporate partners are taxed at the corporate rate of 17%. Partners who are not tax resident in Singapore are taxed only on Singapore-sourced income.

Pros & Cons

Advantages
  • Partners enjoy limited liability โ€” personal assets are protected from the LLP's debts
  • Tax-transparent: profits are taxed at the individual partner level, avoiding double taxation
  • Fewer compliance requirements compared to a Pte Ltd (no requirement to audit accounts or hold AGMs)
  • Flexible internal management structure governed by the partnership agreement
  • Lower annual filing costs than a Pte Ltd
Disadvantages
  • At least two partners are required at all times โ€” if one leaves, a replacement must be found or the LLP dissolved
  • At least one manager must be a Singapore resident
  • Cannot issue shares or equity โ€” not suitable for raising venture capital
  • Less recognised internationally than a Pte Ltd; some banks and investors may be less familiar with the LLP structure
  • Professional indemnity may still apply to the partner whose negligence caused a liability

Other Structures in Singapore

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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.