Ptd Ltd vs LLC vs Sole Proprietor - Jorbb shows you how

Advantages of LLC / LLP and setting up in Singapore

When you set up a business as a sole proprietor, you are solely responsible for the profits and losses of the company. LLC is nothing but a legal entity that provides tax benefits as well as protects the liabilities. More and more people are now interested in operating their business as a LLC. Setting up limited liability partnership is allowed in Singapore where you can create partnerships and enjoy protection from personal liabilities. You need not take the responsibilities of other partner in the company but you can still take advantage of tax benefits.

As a partner in a limited liability partnership companies, you can take a part in providing financial help to other partners. You will get a return on your investment along with protection of liabilities. The partner in the company has to take the financial risk but not the liability risk which is much beneficial. You can still run your own business under any ownership and enjoy tax benefits by participating in limited liabilities partnerships. If you don’t wish to continue with the partnership, you can leave at any convenient time without the need for dissolving the limited partnership.

Setting up a LLP in Singapore

The government of Singapore allows you to create limited liability partnerships to secure liabilities by partnering with other individuals or companies.

1. Any person or company can register for a limited liability partnership. There must be a minimum of two (2) partners. Companies or individuals who have an undischarged bankruptcy cannot register for an LLP.

2. If you wish to set up a LLP, you need to appoint a local manager who should have a local address in Singapore. You can appoint anyone above 21 years of age as local manager if he or she is either a permanent resident or Singapore resident or holding employment pass or holding dependent pass.

3. Just like any other business, you have to look for a company that is unique to your business. You will not be allowed to take up a name that is already established. ACRA has an online list of businesses that are in existence and you have to check the ACRA list to find if your name is unique.

4. SSIC code is essential for setting up LLP as it identifies your business activity. Use ACRA website to find out the code for tour business. You can achieve this by conducting a keyword search.

5. You need to specify the location of your business by specifying the local address of the place. The Urban Development Authority should approve your location for proceeding with your business.

6. Medisave should be cleared and you have to top up your account for keeping it up to date. There are many ways for making payment to this account. After this, apply for Singpass for your LLP company.

7. The registration process also involves the filling up of the BizFile after logging in with the Singpass. You can register on your own or get help from the financial firms for filling up the BizFile.

8. You need to know the licenses that are required for your LLP and get permissions from the corresponding authorities. After all these formalities are completed, you will be approved for opening your LLP.

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