Types of Organisations and Requirements

These are the 5 types of businesses in Singapore:

• Sole Proprietorship
• Partnership
• Limited Liability Partnership (LLP)
• Limited Partnership (LP)
• Company

Sole Proprietorship

A sole-proprietorship is a business owned by one person or one company. There are no partners. The sole-proprietor has absolute say in the running of the business.

• No partners or company structure
• Owner can be one person or one company
• Full control of management
• Easiest & cheapest way of structuring a business
• Total privacy — non-disclosure of profits to public
• Easy to close —  inform ACRA by filing notice
• Cannot register for more than one / partnership
• Low capital
• Tremendous personal effort
• No separate legal entity
• Solely responsible for management and risks
• Liable for all business debts
• Takes all profits
• Disruption of business on retirement, death

Limited Partnership (LP)

An LP is a partnership consisting of a minimum of two partners, with at least one general partner and one limited partner. An LP does not have a separate legal entity from the partners, i.e. it cannot sue or be sued or own property in its name.

• Good for investors who don't desire to take part in management but wish to leave to others who are confident enough to assume unlimited liability
• Generally, more attractive to private equity and investment funds businesses
• LP not a separate legal entity from the partners
• Launched by ACRA on 4 May 2009
• Limited Partnerships Act (Cap. 163B)
• General Partnership Law applies to LPs except where inconsistent with LP Act

Management of Limited Partnership

Accounts

• No need to file or have them audited
• Proper accounting records to explain the transactions and financial position of LP

Local Manager

• If all general partners resident outside Singapore
• To perform duties under Parts III, IV & V LPA 2008

Income Tax

• Same treatment as general partnership