In short: Singapore has three partnership types. In a general partnership (GP), 2 to 20 partners share unlimited liability. A limited partnership (LP) has at least one general partner with unlimited liability and one limited partner. A limited liability partnership (LLP) is a separate legal entity whose partners have limited liability. Partners are taxed on their share of profits at personal rates, and if all partners live abroad, a locally resident manager or authorised representative is needed. Most foreign founders choose a private limited company instead, which Paul Hype Page incorporates for S$800 plus the S$315 ACRA fee.
The three types of partnership
| General partnership | Limited partnership | LLP | |
|---|---|---|---|
| Partners | 2 to 20 | At least 1 general and 1 limited partner | At least 2 |
| Separate legal entity | No | No | Yes |
| Liability | Unlimited, shared | Unlimited for general partners; limited partners up to their contribution | Limited; partners aren’t liable for each other’s misconduct |
| Law | Partnership Act / Business Names Registration Act | Limited Partnerships Act | Limited Liability Partnerships Act |
| Local presence | Authorised representative if no partner is resident | Local manager if all general partners live abroad | At least 1 manager ordinarily resident in Singapore |
How partnerships are taxed
A partnership doesn’t pay tax itself. It files a partnership return (Form P) with IRAS, and each partner pays tax on their share of profits: individuals at personal income tax rates, and corporate partners at 17%. A company pays 17% on its own profits, with partial and start-up exemptions, and that’s why a profitable business often pays less tax as a Pte Ltd.
Partnership or private limited company: which suits a foreign founder?
- Choose an LLP for a professional firm with partners who want flexibility and limited liability.
- Choose a Pte Ltd if you need outside investors, an Employment Pass or EntrePass, a corporate bank account that’s easy to open, or treaty benefits. MOM work passes are tied to employment by a Singapore entity, and most foreign founders apply through a company.
- A partnership can’t be converted into a company in place. You register a new company and transfer the business to it.
How Paul Hype Page helps
Incorporation is S$800 plus the S$315 ACRA fee, and our setup package bundles the main setup services (ask us what it includes). We act as your corporate secretary (S$600 a year) and can apply for your Employment Pass. Paul Hype Page has a 96% EP success rate (PHP internal records, 1,000+ applications), offers a free EP eligibility check, and if MOM rejects your EP, we appeal for free. Founders can sign documents remotely.
FAQ
How many partners can a Singapore general partnership have?
Between 2 and 20. A business with more than 20 members has to be registered as a company.
Can a foreigner register an LLP in Singapore?
Yes, but the LLP needs at least one manager who is ordinarily resident in Singapore.
Is an LLP taxed like a company?
No. The LLP isn’t taxed itself. Each partner pays tax on their share of profits at their own rate.
Can a partnership sponsor an Employment Pass?
Work passes depend on employment by a Singapore entity, and most foreign founders use a private limited company to apply. Ask us for a free EP eligibility check.
Questions about your company? WhatsApp us or contact us. Free EP eligibility check, and you can sign documents remotely.
Related company registration services
Most foreign founders who need a work pass use a private limited company rather than a partnership. See our company registration services.
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