Singapore is a country with multi-ethnic background with a population of over five million and an excellent place to start the business in the South East Asia Region. The country got a good business environment and political stability that encourages many foreign nationals to invest in Singapore. Before investing or starting a business in Singapore the potential businessman should aware of the law and regulation in Singapore that may apply to both citizen and noncitizens. The tax allocation for the companies varies according to the structure and thus it requires receiving professional advice before commencing to business. All business entities in Singapore regardless of the type must be registered with the Accounting and Corporate Regulatory Authority (ACRA).
One of the main steps to start a business in Singapore is to register the company and Limited Liability Partnership (LLP) is one of them. In this article, we shall discuss the details of LLP Singapore and also discuss the Singapore LLP registration process. LLP is one of the popular business vehicles in Singapore where business involves partnership and interested parties may register their business as LLP for carrying out partnership business activities. Any Limited Liability Partnership Singapore got the corporate body that has a separate legal personality which differs from its partners. According to the law of Singapore, the LLP provides the opportunity to the owner that he may run the company as a partnership and at the same time he may enjoy the benefits of limited liability. Also, he may add the benefits of a partnership with the private limited company. Although there is safeguards that one may not misuse or abuse the law and provide the protection for the parties who are dealing with LLP.
Singapore LLP registration process is simple and easy. The application fees for the LLP Singapore is $1655 and this fee includes a 15$ name registration fees. Name registration is a process where a new company must choose a name for the company and conduct online checking that if the name is already registered or if the name contains any wording that does not go with the moral value of the country. Usually, the name checks complete within 15 minutes and approved name remains active for the applicant for next 30 days. After the initial days are over, the name remains active for another 30 days for the applicant.
Details on LLP Singapore – Limited Liability Partnership in Singapore
An age restriction applies for LLP Singapore and one cannot register a company unless he/she is not 18 years old. Additionally every LLP operating in Singapore must have one appointed manager and the age of the must be over 18 years old as well. Any LLP Singapore should have at least two partners and the partners can be different individuals, any local company or foreign company or another LLP. If all shareholders of LLP Company become the partners of the company then it becomes convent for an LLP. The LLP Singapore may apply for conversion if the company got no filing obligation or the company does not have any outstanding obligation in security interest for its asset during the time when the application was made. The application fees payable for conversion is $100 Singaporean.
Another obligation for LLP Singapore is that, if the partners of the company is Singaporean citizen or permanent resident of Singapore then the LLP company must contribute to the partner’s Medisave (this is a national medical savings scheme) along with the board of central provident fund (Singapore’s Social Security System) during the time of registration of a new Limited Liability Partnership company or conversation of the company or when new partner entering or leaving the company. There’s also continuing requirement for running any LLP company.
Any Limited Liability Partnership in Singapore must keep their accounting records details and these records must clarify company’s transaction and financial records. By law, this is mandatory for the company to keep accounting records for the last five years and the register of LLP Company is responsible to generate and maintain accounting records for future inspections. Additionally, any LLP company in Singapore is bound to submit annual returns to ACRA, where the manager of the company is required to submit an annual declaration of the company to ACRA to determine whatever the company is paying its debt during the normal operation of the company. Regardless the type of documents need to be submitted to ACRA, must go through BizFile. The company has to provide details of the company and should provide the constitution of the company, local address which is a physical address, not just a post box address.
Additionally, the company has to provide the particulars of the directors and also obtain the Singapore Standard Industrial Classification (SSIC) code for running their business. After collecting the information mentioned above the company may pay up the fees and submit an online application through BizFile. On another hand, the company may also choose to take support from a professional firm who may submit documents on their behalf.