One of the business entities which anyone who plans to start a business in Singapore may select is that of the partnership. Partnerships are run by consensus and can be divided into general partnerships and limited partnerships. General partnerships are to have between two and 20 partners. All of a general partnership’s partners are liable for all of the business’s debts which have been incurred. Therefore, the liability of all partners is unlimited. In the case of limited partnerships, at least one limited partner and one general partner must be present. Limited partnerships may have as many partners as are required or desired. The general partners of a limited partnership have unlimited liability. They also oversee the daily operations of the partnership. The limited partners have limited liability. This therefore means that their personal assets usually may not be used to pay for business debts and liabilities. The amount of their liability depends on the amount which they have invested in the partnership.
There are several reasons why one might choose to start a partnership instead of any other business entity. One advantage of a partnership lies in the fact that the resources and capital of all of the partners involved can be combined; thus, the risk of the partnership’s facing financial struggles is reduced. All assets of the partnership are collectively owned by the partners; the partners also divide all of the partnership’s profits among themselves. In this way, all of the partners can be certain that they receive an amount of money which will usually be deemed suitable for the contributions which they have made towards the success of the partnership.
Perhaps you might have a plan to start a partnership in Singapore. If you do, you can always contact us at Paul Hype Page & Co for further assistance. We have assisted many a business owner with the establishment of any business in Singapore. This is true regardless of whether the business is a sole proprietorship, a private limited company, or a partnership.
Although not every partnership based in Singapore is required to have a partnership agreement, it is nevertheless very much advisable for a partnership to have one. A partnership agreement defines the duties, liabilities, and rights of every partner of the partnership. Many of the other important details of a partnership are also determined by a partnership agreement such as the relationship between each of the partners as well as the obligations which every partner has towards other partners. Partnership agreements also serve to provide resolutions to disputes among partners. Such will be the case if the partnership agreement is constantly reviewed and updated so as to suit the current conditions of the partnership. In this way, the partnership agreement will be able to account for any issues which may arise as a result of one or more disputes.