A limited liability partnership (LLP) is a separate legal entity form its partner. It can:

• Sue and be sued under its own name
• Acquire and hold property under its own name
• Use a common seal under its own name
• Perform other legal acts as allowed for corporate bodies

Can foreigner set up LLP in Singapore?

Foreigners looking to register a Limited Liability Partnership (LLP) in Singapore must appoint a locally resident manager. This includes Singapore citizens, permanent residents, or individuals holding an EntrePass or Employment Pass.

What is the Min and Max number of partners that an LLP can have?

There must be a minimum of two partners. However, there is no cap on the maximum number of partners.

Who can be partners of an LLP?

Partners in an LLP can be either individuals or companies.

For income tax purposes, a LLP is treated as a partnership, not as a separate legal entity. This means the LLP is not taxed at the entity level. Instead, each partner is taxed on their share of the LLP’s income.

Where the partner is an individual, the partner’s share of income form the LLP will be taxed based on the individual income tax rare. Where the partner is a company, the partner’s share of income from the LLP will be taxed at the corporate income tax rate.

Annual Declaration

The manager of every LLP is responsible for lodging an annual declaration stating whether the LLP is solvent or insolvent.

The first annual declaration must be lodged within 15 months from the date of registration of the LLP. Subsequent declarations must be lodged once every calendar year and not more than 15 months after the lodgement of the last declaration.

Annual Income Tax Return (Form P)

All partners of an LLP are required to file an Annual Income Tax Report (Form P) to show all income earned and business expenses deducted by the partnership during the year.

E-filing of Form P is available from 1 Feb and due on 18th Apr each year.