Features | | |
Introduction | - One of the most preferred corporate vehicle for wider range of business journey
| - Hybrid form of business vehicle consisting both company and typical partnership
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Suitability of Business Vehicle | - Suitable for carrying all types of business activities including professional services
| - Suitable to carry professional services such as Law Firm, Audit Firm, etc
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Definition | - A business form which is a legal entity separate and distinct from its shareholders and directors
| - A partnership where the individual partner’s own liability is generally limited
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Ownership or Owners  | - Exempt Private Company – 20 members or less and no corporation holds beneficial interest in the company’s shares
- Private Company – 50 members or less
- Public Company – can have more than 50 members
| - At least 2 partners.
- No maximum limit.
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Legal Identity or Status | - A separate legal entity from its members and directors
- Members have limited liability
- Can sue or be sued in company’s name
- Can own property in company’s name
- Members not personally liable for debts and losses of company
| - 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
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Requirements For Registration or Formation or Incorporation | - Minimum of one share.
- Minimum Paid-up capital is S$1 (SGD One Only)
- At least one shareholder.
- At least one director ordinarily resident in Singapore, at least 18 years old.
- If a foreigner wishes to act as a local director of the company, he can apply for an EntrePass from the Ministry of Manpower (MOM).
- Undischarged bankrupts cannot be a director and cannot manage a company 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.
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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
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Level of Fees for Registration | - High when comparing to other form of business vehicles
| - Low set up costs among all business vehicles
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Renewal Costs | - Perpetual succession hence renewal is not applicable
| - Perpetual succession hence renewal is not applicable
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Perception of Business by the Public | - Regarded more trust worthy and credibility
| - It is common with specific professions hence it is easily and strongly regarded more trust worthy and credibility
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Funding Opportunities | - Avenue for equities from members including venture capital funding.
- Obtaining financial loans is relatively easier compared to other form of businesses.
| - Obtaining loans from banks is only by mortgaging the personal assets of the partners.
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Yearly Statutory Obligations | - Must appoint a company secretary within 6 months of incorporation.
- Must appoint an auditor within 3 months after incorporation, unless the company is exempt from audit requirements
- Annual returns must be filed.
- Statutory requirements for general meetings, directors, company secretary, share allotments must be complied with.
| - 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.
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Taxation | - Profits taxed at corporate tax rates
| - Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation)
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Taxation Form | | - Form P for Partnership & Form B for respective Partners
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GST Implication | - GST obligation is at entity level based on own turnover
| - Based on combined turnover of all partnership businesses with the same composition (structure) of partners
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Perpetual Existence in Law | - A company has perpetual succession until wound up or struck off.
| - The LLP has perpetual succession until wound up or struck off.
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Transfer of Ownership | - Ownership can be transferred by sale and purchase of shares
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Closing the Business or Deregistration | - Winding Up – Voluntarily by members or creditors, compulsorily by the High Court
- Striking off
| - Winding Up – Voluntarily by members or creditors, compulsorily by the High Court
- Striking off
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