Question 1

Singapore Sole Proprietorship vs Limited Liability Partnership (LLP)?

Achibiz · Accepted Answer

Comparison of Singapore Sole Proprietorship vs Limited Liability Partnership (LLP)

Click here to view the comparison of Singapore Entities & Firms (In PDF).

Click here to view the Advantages & Disadvantages / Pros & Cons of all types of Entities & Firms in Singapore. (In PDF)

*Features*	Sole-Proprietorship	Limited Liability Partnership (LLP)
*Introduction*	A basic & simple form of starting the business vehicle	Hybrid form of business vehicle consisting both company and typical partnership
*Suitability of Business Vehicle*	Suitable for a small scale business with low risks	Suitable to carry professional services such as Law Firm, Audit Firm, etc
*Definition*	A business owned by one person	A partnership where the individual partner’s own liability is generally limited
*Ownership or Owners*	Only one person	At least 2 partners. No maximum limit.
*Legal Identity or Status*	Not a separate legal entity Owner has unlimited liability Can sue or be sued in individual’s own name Can also be sued in business name Can own property in individual’s name Owner personally liable for debts and losses of business	A separate legal entity from its partners Partners have limited liability Can sue or be sued in LLP’s name Can own property in LLP’s name Partners personally liable for debts and losses resulting from their own wrongful actions Partners not personally liable for debts and losses of LLP incurred by other partners
*Requirements For Registration or Formation or Incorporation*	Age 18 years or above. Singapore citizen / Singapore Permanent Resident / EntrePass holder. If owner not resident in Singapore, he must appoint an authorized representative who is ordinarily resident in Singapore. Self-employed persons must top up their Medisave account with the CPF Board before they register a new business name, become a registrant of an existing business name, or renew their business name registration. Undischarged bankrupts cannot manage the business without approval from the Court or the Official Assignee.	At least two partners, who can be individuals (at least 18 years old) or body corporate (company or LLP). At least one manager ordinarily resident in Singapore and at least 18 years old. Undischarged bankrupts cannot manage the business without approval from the Court or the Official Assignee.
*Easiness of Registration*	An easy process to be completed within a few hours however subject to referral to different authorities which may delay up to 14 working days	An easy process to be completed within a few hours however subject to referral to different authorities which may delay up to 14 working days
*Level of Fees for Registration*	Low set up costs among all business vehicles	Low set up costs among all business vehicles
*Renewal Costs*	Low costs for renewal	Perpetual succession hence renewal is not applicable
*Perception of Business by the Public*	Regarded least trust worthy and credibility	It is common with specific professions hence it is easily and strongly regarded more trust worthy and credibility
*Funding Opportunities*	Obtaining loans from banks is only by mortgaging the personal assets.	Obtaining loans from banks is only by mortgaging the personal assets of the partners.
*Yearly Statutory Obligations*	Yearly renewals (one year or three years) CPF Medisave Top-Up required for Self-employed Persons before they can renew sole-proprietorship	Annual declaration of solvency/insolvency must be lodged by one of the managers stating whether the LLP is able or not able to pay its debts during the normal course of business. No statutory requirement for general meetings, directors, company secretary, share allotments etc.
*Taxation*	Profits taxed at owner’ personal income tax rates	Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation)
*Taxation Form*	Form B	Form P for Partnership & Form B for respective Partners
*GST Implication*	Based on combined turnover of all of your sole proprietorship firms plus income derived from other trades, professional services or vocation	Based on combined turnover of all partnership businesses with the same composition (structure) of partners
*Perpetual Existence in Law*	Existence subject to life of the owner and cessation of the business	The LLP has perpetual succession until wound up or struck off.
*Transfer of Ownership*	When the owner exits the sole proprietorship will cease	Partners can be changed
*Closing the Business or Deregistration*	By Owner - Cessation of business Registrar can cancel registration if not renewed or where Registrar is satisfied business is defunct	Winding Up – Voluntarily by members or creditors, compulsorily by the High Court Striking off

Question 2

Singapore Sole Proprietorship vs Limited Liability Partnership (LLP)?

Achibiz · Accepted Answer

Comparison of Singapore Sole Proprietorship vs Limited Liability Partnership (LLP)

Click here to view the comparison of Singapore Entities & Firms (In PDF).

Click here to view the Advantages & Disadvantages / Pros & Cons of all types of Entities & Firms in Singapore. (In PDF)

*Features*	Sole-Proprietorship	Limited Liability Partnership (LLP)
*Introduction*	A basic & simple form of starting the business vehicle	Hybrid form of business vehicle consisting both company and typical partnership
*Suitability of Business Vehicle*	Suitable for a small scale business with low risks	Suitable to carry professional services such as Law Firm, Audit Firm, etc
*Definition*	A business owned by one person	A partnership where the individual partner’s own liability is generally limited
*Ownership or Owners*	Only one person	At least 2 partners. No maximum limit.
*Legal Identity or Status*	Not a separate legal entity Owner has unlimited liability Can sue or be sued in individual’s own name Can also be sued in business name Can own property in individual’s name Owner personally liable for debts and losses of business	A separate legal entity from its partners Partners have limited liability Can sue or be sued in LLP’s name Can own property in LLP’s name Partners personally liable for debts and losses resulting from their own wrongful actions Partners not personally liable for debts and losses of LLP incurred by other partners
*Requirements For Registration or Formation or Incorporation*	Age 18 years or above. Singapore citizen / Singapore Permanent Resident / EntrePass holder. If owner not resident in Singapore, he must appoint an authorized representative who is ordinarily resident in Singapore. Self-employed persons must top up their Medisave account with the CPF Board before they register a new business name, become a registrant of an existing business name, or renew their business name registration. Undischarged bankrupts cannot manage the business without approval from the Court or the Official Assignee.	At least two partners, who can be individuals (at least 18 years old) or body corporate (company or LLP). At least one manager ordinarily resident in Singapore and at least 18 years old. Undischarged bankrupts cannot manage the business without approval from the Court or the Official Assignee.
*Easiness of Registration*	An easy process to be completed within a few hours however subject to referral to different authorities which may delay up to 14 working days	An easy process to be completed within a few hours however subject to referral to different authorities which may delay up to 14 working days
*Level of Fees for Registration*	Low set up costs among all business vehicles	Low set up costs among all business vehicles
*Renewal Costs*	Low costs for renewal	Perpetual succession hence renewal is not applicable
*Perception of Business by the Public*	Regarded least trust worthy and credibility	It is common with specific professions hence it is easily and strongly regarded more trust worthy and credibility
*Funding Opportunities*	Obtaining loans from banks is only by mortgaging the personal assets.	Obtaining loans from banks is only by mortgaging the personal assets of the partners.
*Yearly Statutory Obligations*	Yearly renewals (one year or three years) CPF Medisave Top-Up required for Self-employed Persons before they can renew sole-proprietorship	Annual declaration of solvency/insolvency must be lodged by one of the managers stating whether the LLP is able or not able to pay its debts during the normal course of business. No statutory requirement for general meetings, directors, company secretary, share allotments etc.
*Taxation*	Profits taxed at owner’ personal income tax rates	Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation)
*Taxation Form*	Form B	Form P for Partnership & Form B for respective Partners
*GST Implication*	Based on combined turnover of all of your sole proprietorship firms plus income derived from other trades, professional services or vocation	Based on combined turnover of all partnership businesses with the same composition (structure) of partners
*Perpetual Existence in Law*	Existence subject to life of the owner and cessation of the business	The LLP has perpetual succession until wound up or struck off.
*Transfer of Ownership*	When the owner exits the sole proprietorship will cease	Partners can be changed
*Closing the Business or Deregistration*	By Owner - Cessation of business Registrar can cancel registration if not renewed or where Registrar is satisfied business is defunct	Winding Up – Voluntarily by members or creditors, compulsorily by the High Court Striking off