Advantages / pros and disadvantages / cons of Limited Liability Partnership in Singapore?

Advantages / Pros of a Limited Liability Partnership (LLP) in Singapore:

• • Lower registration cost and easy to set up

• • Reduced compliance obligations – general meetings, directors, company secretary, etc., are not required

• • Only an annual declaration of solvency or insolvency is required

• • LLPs are considered as a separate legal entity from their owners, which means that owners are not responsible for any debts or losses the business incurs

• • Easier than Partnerships and Sole Proprietorships to secure funding for the start-up years of the business

• Succession of LLPs are perpetual, until they are struck off or wound up

Disadvantages / Cons of a Limited Liability Partnership (LLP) in Singapore:

• • Profits are taxed are based on the owner’s income level – this means that as the owner’s income level increases, taxes increase as well due to Singapore’s progressive tax system

• Not eligible for Government funded micro loans