Pros and Cons of Partnership in Singapore?

What are the Pros and Cons of Singapore Partnership?

What are the advantages and disadvantages of a Partnership in Singapore?

What are the plus and minus of a Partnership in Singapore?

What are the Pros and Cons of Singapore Partnership?

What are the advantages and disadvantages of a Singapore Partnership?

What are the plus and minus of a Singapore Partnership?

Partnership advantages and disadvantages.

Pros / Advantages of Partnership (General) in Singapore.

• Partnerships face fewer statutory controls than companies.
• There is no requirement to audit or publish accounts or to register the Partnership Agreement. No returns are required to be made by partnerships, except for income tax.
• The internal structure of partnerships is very flexible. Most of the rules for the structure of partnerships can be overridden if the partners agree otherwise.
• Partnerships can be simple and cheap to set up. There is no requirement to have any written documentation, although a Partnership Agreement is advisable (see above).
• Partners owe a duty of good faith to each other. Partners must also account to the partnership for any secret profits that they make from the partnership without the consent of the other partners, including any profits gained from any competing business.

Cons / Disadvantages of a Partnership (General) in Singapore.

• Partners face unlimited liability for all the debts of the partnership. This means that the personal assets of each partner are at risk.
• Partners are jointly liable for partnership debts. This means that if one partner fails to pay his share of the partnership debt, the other partners must make up the shortfall.
• Any individual partner can be sued for all the debts of the partnership.
• The partnership does not have its own separate legal identity from the partners. Therefore, unless otherwise agreed, the partnership will come to an end each time a partner leaves.
• The avenues available for access to further capital for expansion are restricted by the amount of security that can be given personally by the individual partners.