How to Start a Partnership Business in SingaporePosted by Cheryl Lee on January 21st, 2021 Forming a Partnership in SingaporeThe profits are divided among the partners and the partners own the assets collectively, as per the terms agreed in the Partnership Agreement. In the event of lapses in the partnership agreement, the provisions of the Partnership Act will take precedence. Types of PartnershipThe partnership structure is of two types:
Features of a PartnershipLacks Legal Identity: The registration of a partnership does not constitute a separate legal identity. So both LP and GP lack legal identity of their 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. Validity/ Renewal: The registration must be renewed. It can be renewed for a period of one year or three years. Renewal must be done before the expiry of registration. Eligibility: Any natural person whose age is 18 years and above can register a partnership. Another Singapore registered company is also eligible to register a partnership. Singapore citizens and Permanent Residents who are self employed are required to register for CPF and top up their Medisave account in order to register or renew their business registration. Officer: In a GP, if none of the owners are residing in Singapore, a natural person must be appointed, as a manager. Such person must be ordinarily resident in Singapore. Ordinarily resident means, a citizen or permanent resident of Singapore or foreigners on employment pass or dependent pass. In the LP if none of the general partners are resident of Singapore, a manager who is ordinarily resident in Singapore must be appointed. The manager is personally responsible for the discharge of all obligations of the LP. He is subject to the same liabilities and penalties as a general partner of the LP if the general partner defaults in respect of such obligation. Registered Address: A local Singapore physical address is required. Taxation: Chargeable profits are treated as personal incomes of the partners who are individuals and are subjected to personal income tax rates. In the case of corporate partners chargeable profits are subjected to corporate tax rates. Limitation: As it does not constitute a legal entity, a partnership cannot register another legal entity. Continuity: It continues to exist as long the partners agree to keep the partnership. It will cease to exist if the registration is left to lapse and not renewed. Filing of cessation notice by the partners or authorized representatives will also amount to cessation of partnership. Documents Required in Setting up a Partnership
The registration can be completed in one day, provided all partners/authorized representatives have endorsed the online application. It may take up to two months in unusual circumstances, where ACRA has to refer the registration application to other government agencies for review. Upon successful registration you will be notified via mail and the partnership will be issued with a registration number. Soft copy of business profile can be retrieved online. Read mroe about setting up a partnership in Singapore at Singapore Company Incorporatiion. Like it? Share it!More by this author |