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Comparison of Singapore Partnership vs Limited Liability Partnership (LLP)?
Comparison of Limited Liability Partnership vs Partnership in Singapore?
Comparison of Singapore Partnership against Limited Liability Partnership (LLP)?
Difference between Singapore LLP (Limited Liability Partnership) and Partnership?
Comparison of Singapore Partnership and LLP (Limited Liability Partnership)?
Difference between Singapore Partnership and Limited Liability Partnership?
Comparison of Partnership vs LLP in Singapore?
Comparison of Singapore LLP vs Partnership?
Partnership and LLP?
LLP and Partnership?
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 |
Partnership (General) |
Limited Liability Partnership (LLP) |
| Introduction
|
A basic form of business vehicle with two or more co-partners | Hybrid form of business vehicle consisting both company and typical partnership |
| Suitability of Business Vehicle | Suitable for a small to medium size of business journey with co-partners | Suitable to carry professional services such as Law Firm, Audit Firm, etc |
| Definition | An association of two or more persons carrying on business in common with a view to profit | A partnership where the individual partner’s own liability is generally limited |
| Ownership or Owners
|
Between 2 and 20 partners.
A partnership of more than 20 partners must incorporate as a company under the Companies Act, Chapter 50 (except for professional partnerships) |
At least 2 partners.
No maximum limit. |
| Legal Identity or Status | Not a separate legal entity
Partners have unlimited liability Can sue or be sued in firm’s name Cannot own property in firm’s name Partners personally liable for partnership’s debts and losses incurred by other partners |
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 | Capital injection is limited to the new partner.
Obtaining loans from banks is only by mortgaging the personal assets of the partners. |
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 partnership |
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 partners’ personal income tax rates | Profits taxed at partners’ personal income tax rates (if individual)/ corporate tax rate (if corporation) |
| Taxation Form | Form P for Partnership & Form B for respective Partners | Form P for Partnership & Form B for respective Partners |
| GST Implication | Based on combined turnover of all partnership businesses with the same composition (structure) of partners | Based on combined turnover of all partnership businesses with the same composition (structure) of partners |
| Perpetual Existence in Law | Existence subject to partnership agreement | The LLP has perpetual succession until wound up or struck off. |
| Transfer of Ownership | Partners can be changed | Partners can be changed |
| Closing the Business or Deregistration | By the partners – 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 |
