A partnership is a business entity that consists of at least 2 people. The people included in the partnership are called partners, and they are personally liable for debts incurred by the business. The governance of duties, profit and losses is based on terms laid out in a partnership deed.
There are 2 types of a partnership structure:
General Partnership (GP)
There is a minimum of 2 partners and maximum of 20 partners. Any more than 20 partners, the business must be registered as a company. All the partners are personally liable for the debts and liabilities of the business in an unlimited capacity.
Limited Partnership (LP)
There needs to be at least one general partner and one limited partner, and there is no maximum limit on the number of partners. The liability of the general partners is unlimited whereas the liabilities of the limited partners are limited to the amount of their contribution to the business.
Some details of a Partnership:
Legal Entity: A partnership is not a separate legal entity on its own. A General Partnership cannot own property in its own name but it can sue and be sued in its own name. A Limited partnership can neither own property nor it can sue or be sued in its own name.
Registration Renewal: A partnership registration is valid for a period of one or three years and has to be renewed before expiry of registration validity.
Eligibility: A Singapore Citizen, Singapore Permanent Resident, or an EntrePass Holder of at least 18 years.
Foreigner Eligibility: Yes, foreigners can apply for a partnership. Foreigners residing overseas must appoint at least one locally resident authorised representative (we can perform this) AND must also engage a registered filing agent to submit the application (we can perform this). Foreigners who are currently residing in Singapore must seek approval from the Ministry of Manpower before registering a partnership. If any of the proposed partners do not have a SingPass account, the applicants must engage the services of a registered filing agent (we can perform this) to submit the application on their behalf.
Business Address: A partnership has to use a local Singapore physical address. A residential address can be used (HDB or private property) after getting approval from HDB or URA respectively. Otherwise you can use our registered business address service option. A P.O. Box address cannot be used as the business address.
Business Tax: A partnership abides by personal income tax rates. If the partner is a corporate entity, profits for that partner are subject to corporate tax rates.
Documents and Information required:
- Proposed business name
- Copy of NRIC and Passport of the partners/managers (foreign passport or NRIC/passport)
- If partner is a company, the registration details of the company
For almost all cases we have conducted, the sole proprietorship the registration takes less than one day for most people. However it is reported on ACRA that there have been instances where it can take up to 2 months due to certain complications.
What Will You Receive:
- ACRA Business Profile
- UEN (Unique entity number)
- Digital and hard copy documents
- Bank account opening and Welcome pack
How Much Will it Cost:
- Our fees are the lowest in Singapore – SGD $350
- ✓Includes ACRA business registration and name application fee
To register a partnership or ask some questions with a specialist – Contact us here for a free consultation