{"id":981,"date":"2026-02-26T06:18:47","date_gmt":"2026-02-26T06:18:47","guid":{"rendered":"https:\/\/sg.blog.razorpay.in\/sg\/blog\/?p=981"},"modified":"2026-03-25T03:51:47","modified_gmt":"2026-03-25T03:51:47","slug":"limited-liability-partnership-llp-in-singapore","status":"publish","type":"post","link":"https:\/\/razorpay.com\/sg\/blog\/limited-liability-partnership-llp-in-singapore\/","title":{"rendered":"Limited Liability Partnership (LLP) in Singapore: A Complete Guide"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">For professionals and entrepreneurs starting a business in Singapore, choosing the right legal structure is a balance between protection and simplicity. The <\/span><b>Limited Liability Partnership (LLP)<\/b><span style=\"font-weight: 400;\">, governed by the <\/span><b>Limited Liability Partnerships Act<\/b><span style=\"font-weight: 400;\">, offers a unique middle ground.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An LLP is a hybrid business vehicle that combines the benefits of a partnership (flexibility in internal management) with those of a private limited company (separate legal personality and limited liability). In 2026, as Singapore continues to lead in digital transformation, the LLP remains a preferred choice for professional service providers like accountants, lawyers, and consultants who want to collaborate without risking their personal assets for their partners&#8217; mistakes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This guide provides a definitive look at the LLP structure, its tax implications, registration steps, and how it stacks up against other entities.<\/span><\/p>\n<div style=\"border-left: 4px solid #007BFF; background: #f0f8ff; padding: 25px; margin: 30px 0; border-radius: 8px; font-family: Arial, sans-serif; text-align: left;\">\n<h2 style=\"margin-top: 0; color: #007bff; font-size: 22px;\">Key Takeaways<\/h2>\n<ul style=\"margin: 15px 0; padding-left: 20px; color: #333; line-height: 1.6; font-size: 16px;\">\n<li><strong>Separate Legal Personality:<\/strong> An LLP is a legal entity distinct from its partners. It can own property and enter into contracts in its own name.<\/li>\n<li><strong>Limited Liability:<\/strong> Partners are generally not personally liable for the business debts or the wrongful acts of other partners.<\/li>\n<li><strong>Tax Transparency:<\/strong> Unlike a company, an LLP is not taxed at the entity level. Instead, profits are treated as the personal income of the partners.<\/li>\n<li><strong>No Audit Requirement:<\/strong> LLPs are generally not required to have their accounts audited, significantly reducing compliance costs.<\/li>\n<li><strong>Perpetual Succession:<\/strong> The LLP continues to exist despite changes in the partnership (e.g., death or resignation of a partner).<\/li>\n<li><strong>Identifier:<\/strong> Every LLP is issued a Unique Entity Number (UEN) by ACRA.<\/li>\n<\/ul>\n<\/div>\n<h2><b>Why Choose an LLP? Key Advantages<\/b><\/h2>\n<h3><b>1. Protection from Liability<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In a traditional partnership, every partner is &#8220;jointly and severally&#8221; liable for the business. In an LLP, your personal assets (home, savings) are protected. You are only liable for your own wrongful acts, not the negligence of your partners.<\/span><\/p>\n<h3><b>2. Operational Flexibility<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">LLPs are not bound by the rigid corporate governance of the Companies Act. There is no requirement for a Company Secretary or a Board of Directors. Partners can define their roles, profit-sharing, and management duties through a private <\/span><b>Partnership Agreement<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>3. Lower Administrative Burden<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Because there is no mandatory audit and no requirement to file complex financial statements (unless the LLP is insolvent), the cost of maintaining an LLP is much lower than a Private Limited Company.<\/span><\/p>\n<h2><b>Comparison Table: LLP vs. Pte Ltd vs. Sole Proprietorship<\/b><\/h2>\n<table>\n<tbody>\n<tr>\n<td><b>Feature<\/b><\/td>\n<td><b>LLP<\/b><\/td>\n<td><b>Private Limited (Pte Ltd)<\/b><\/td>\n<td><b>Sole Proprietorship<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Legal Status<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Separate Legal Entity<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Separate Legal Entity<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No separate legal status<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Liability<\/b><\/td>\n<td><b>Limited<\/b><\/td>\n<td><b>Limited<\/b><\/td>\n<td><b>Unlimited<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Taxation<\/b><\/td>\n<td><b>Tax Transparent<\/b><span style=\"font-weight: 400;\"> (at Partner level)<\/span><\/td>\n<td><b>Corporate Tax<\/b><span style=\"font-weight: 400;\"> (17%)<\/span><\/td>\n<td><b>Personal Tax<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Audit Required?<\/b><\/td>\n<td><b>No<\/b><\/td>\n<td><b>Yes<\/b><span style=\"font-weight: 400;\"> (if thresholds exceeded)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Secretary Needed?<\/b><\/td>\n<td><span style=\"font-weight: 400;\">No<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yes (Mandatory)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Annual Filings<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Annual Declaration<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Annual Return &amp; FS<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Business Renewal<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><b>Registration Process with ACRA<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Registration is done entirely online via the <\/span><b>BizFile+ portal<\/b><span style=\"font-weight: 400;\"> using Singpass.<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Partners:<\/b><span style=\"font-weight: 400;\"> Minimum of two (2) partners. Partners can be individuals or corporate entities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Manager:<\/b><span style=\"font-weight: 400;\"> At least one manager must be &#8220;ordinarily resident&#8221; in Singapore (Singapore Citizen, PR, or eligible pass holder).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Registered Office:<\/b><span style=\"font-weight: 400;\"> You must have a physical Singapore address.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>SSIC Code:<\/b><span style=\"font-weight: 400;\"> Select the correct Merchant Category Code (MCC) or SSIC code to define your activities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fees:<\/b><span style=\"font-weight: 400;\"> The name application fee is <\/span><b>S$15<\/b><span style=\"font-weight: 400;\">, and the registration fee is <\/span><b>S$160<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ol>\n<h2><b>Taxation in 2026: The &#8220;Tax Transparency&#8221; Rule<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">This is the most critical difference for LLPs in Singapore. The <\/span><b>Inland Revenue Authority of Singapore (IRAS)<\/b><span style=\"font-weight: 400;\"> treats an LLP as &#8220;tax transparent.&#8221;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>No Corporate Tax:<\/b><span style=\"font-weight: 400;\"> The LLP does not pay tax as an entity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Partner Level Tax:<\/b><span style=\"font-weight: 400;\"> The share of profits is added to the partner&#8217;s other income.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Individual Partners:<\/b><span style=\"font-weight: 400;\"> Taxed at progressive personal income tax rates.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Corporate Partners:<\/b><span style=\"font-weight: 400;\"> Taxed at the prevailing corporate tax rate (currently 17%).<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>GST:<\/b><span style=\"font-weight: 400;\"> An LLP must register for GST if its annual taxable turnover exceeds <\/span><b>S$1 million<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2><b>Compliance Requirements<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">While simpler than a company, an LLP must still fulfill these duties:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Annual Declaration:<\/b><span style=\"font-weight: 400;\"> You must lodge a declaration with ACRA every year stating whether the LLP is solvent (able to pay its debts) or insolvent.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Record Keeping:<\/b><span style=\"font-weight: 400;\"> You must maintain accounting records and supporting documents for at least <\/span><b>5 years<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Display UEN:<\/b><span style=\"font-weight: 400;\"> Your Unique Entity Number (UEN) must be displayed on all invoices, receipts, and official correspondence.<\/span><\/li>\n<\/ul>\n<div style=\"background: #f9fbff; border-left: 4px solid #007BFF; padding: 22px 25px; margin: 30px 0; border-radius: 8px; font-family: Arial, sans-serif; color: #333; line-height: 1.6;\">\n<h3 style=\"margin: 0 0 12px 0; color: #007bff; font-size: 20px; display: flex; align-items: center;\">Did You Know?<\/h3>\n<p style=\"margin: 0; font-size: 16px;\">As of 2026, LLPs can utilize <strong>Virtual Accounts<\/strong> to manage partner contributions and distributions more efficiently.<br \/>\nBy assigning a unique virtual account to each partner, the LLP can automate the tracking of capital injections and ensure that monthly draws are reconciled instantly through the FAST network.<\/p>\n<\/div>\n<div style=\"background: #f0f8ff; border-left: 4px solid #007BFF; padding: 30px; margin: 35px 0; border-radius: 8px; font-family: Arial, sans-serif; text-align: center;\">\n<h2 style=\"margin-top: 0; color: #007bff; font-size: 24px;\">Ready to Scale Your Business?<\/h2>\n<p style=\"margin: 15px 0; color: #333; font-size: 16px; line-height: 1.6;\">Streamline your financial operations with a unified payment platform designed for the Lion City.<br \/>\nAccept PayNow, cards, and digital wallets effortlessly while keeping your finances reconciled and compliant.<\/p>\n<p style=\"margin: 15px 0; color: #333; font-size: 16px; line-height: 1.6;\"><!-- CTA Button --><a style=\"display: inline-block; margin-top: 20px; background: #007BFF; color: #fff; padding: 14px 28px; border-radius: 6px; text-decoration: none; font-weight: bold; font-size: 16px; box-shadow: 0 3px 6px rgba(0,0,0,0.15);\" href=\"https:\/\/razorpay.com\/sg\/?utm_source=blog&amp;utm_medium=blog-cta&amp;utm_campaign=singapore-article\">Explore Payment Platform Solutions<br \/>\n<\/a><\/p>\n<\/div>\n<h2><b>Conclusion: Is an LLP Right for You?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Singapore LLP is the ideal structure for professionals who prioritize ease of management and tax transparency. If you don&#8217;t intend to raise venture capital (investors almost always require a Pte Ltd) and want to avoid the overhead of a company secretary and annual audits, the LLP is a robust and protected vehicle for your growth. By leveraging a modern <a href=\"https:\/\/razorpay.com\/sg\/payment-platform\/\">payment platform<\/a> to manage your incoming revenue, you can focus on your professional expertise while keeping your financial trail audit-ready.<\/span><\/p>\n<h2><b>Frequently Asked Questions (FAQs)<\/b><\/h2>\n<h3><b>1. Can one person start an LLP in Singapore?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">No. An LLP requires a <\/span><b>minimum of two partners<\/b><span style=\"font-weight: 400;\">. If you are a solo entrepreneur, you should consider a Sole Proprietorship or a Private Limited Company.<\/span><\/p>\n<h3><b>2. Are LLPs eligible for startup tax exemptions?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">No. Since LLPs are tax-transparent, they do not qualify for the &#8220;Tax Exemption Scheme for New Start-Up Companies.&#8221; However, individual partners can still claim personal tax reliefs.<\/span><\/p>\n<h3><b>3. Does an LLP need a partnership agreement?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">While ACRA does not strictly require a written agreement to register, it is <\/span><b>highly recommended<\/b><span style=\"font-weight: 400;\">. Without one, the default provisions of the First Schedule of the LLP Act apply, which may not suit your specific business needs.<\/span><\/p>\n<h3><b>4. How do I pay my taxes as an LLP partner?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The LLP will issue you a statement of your share of profits. You then report this under &#8220;Trade, Business, Profession or Vocation&#8221; in your individual Income Tax Return (Form B or B1) via the <\/span><b>myTax Portal<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Can one person start an LLP in Singapore?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"No. A Limited Liability Partnership (LLP) in Singapore requires a minimum of two partners. If you are a solo entrepreneur, you may consider registering a Sole Proprietorship or a Private Limited Company instead.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Are LLPs eligible for startup tax exemptions?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"No. LLPs are tax-transparent and therefore do not qualify for the Tax Exemption Scheme for New Start-Up Companies. However, individual partners can still claim applicable personal tax reliefs.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Does an LLP need a partnership agreement?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"While ACRA does not strictly require a written partnership agreement for registration, it is highly recommended. Without one, the default provisions under the First Schedule of the LLP Act will apply, which may not align with your business needs.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How do I pay my taxes as an LLP partner?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The LLP will provide a statement showing your share of profits. You must report this income under 'Trade, Business, Profession or Vocation' in your individual Income Tax Return (Form B or B1) through the myTax Portal.\"\n      }\n    }\n  ]\n}\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For professionals and entrepreneurs starting a business in Singapore, choosing the right legal structure is a balance between protection and simplicity. The Limited Liability Partnership (LLP), governed by the Limited Liability Partnerships Act, offers a unique middle ground. An LLP is a hybrid business vehicle that combines the benefits of a partnership (flexibility in internal [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-981","post","type-post","status-publish","format-standard","hentry","category-payments"],"_links":{"self":[{"href":"https:\/\/razorpay.com\/sg\/blog\/wp-json\/wp\/v2\/posts\/981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/sg\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/sg\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/sg\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/sg\/blog\/wp-json\/wp\/v2\/comments?post=981"}],"version-history":[{"count":2,"href":"https:\/\/razorpay.com\/sg\/blog\/wp-json\/wp\/v2\/posts\/981\/revisions"}],"predecessor-version":[{"id":984,"href":"https:\/\/razorpay.com\/sg\/blog\/wp-json\/wp\/v2\/posts\/981\/revisions\/984"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/sg\/blog\/wp-json\/wp\/v2\/media?parent=981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/sg\/blog\/wp-json\/wp\/v2\/categories?post=981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/sg\/blog\/wp-json\/wp\/v2\/tags?post=981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}