The Singapore general partnership is one of the simplest entities that can be established in the city-state. It is characterized by a minimum of two members with equal rights and obligations in the business.
If you want to set up a company in Singapore in the form of a general partnership, you can rely on our local consultants for guidance.
Partnerships in Singapore fall under the regulations of the Partnership Act issued in 1994. The legislation defines partnerships as the relation between two or more persons carrying out a business with the purpose of making profits. The association must be registered according to the provisions of the Singapore Companies Law or any other corresponding legislation. Investors who want to open this type of company in Singapore must know that there are three types of partnerships available in this jurisdiction:
For more information on the Partnership Act, you can ask our specialists in company formation matters. You can also request our services if you want to open a company in Singapore.
You can watch the video below for information on how to open a general partnership in Singapore:
The Singapore general partnership must have a minimum number of two partners and a maximum number of 20. General partnerships with more than partners must re-register as a company. The general partnership has no distinct legal status from its founding members and the partners have unlimited liability for the Singapore company’s debts and responsibilities. The following requirements apply when opening a partnership in Singapore:
The following steps must be followed in order to register a general partnership in Singapore:
The documents must be submitted to the Singapore Accounting and Corporate Regulatory Authority. Our company formation consultants in Singapore can help you set up a general partnership.
As a business form, the partnership is a non-corporate entity which means it is not delimited from the people setting it up. This means that the liability of the business will fall onto its members. Apart from this, here are other aspects to consider:
If you are wondering if it is worth setting up a company in Singapore under a general partnership, you should note that such an entity is better for a small business.
When opening a general partnership in Singapore, at least one of the members must reside in the city-state. However, it is also possible to set up such an entity with foreign partners, provided that a local officer is appointed. The main purpose of the officer is to act as a liaison between the business and the authorities.
In the case of foreign citizens, these can be holders of resident, employment, or dependent passes. If you need support in creating a general partnership, you can rely on our company formation officers in Singapore.
One of the main advantages of opening a general partnership is the minimum documentation that needs to be drafted, namely the partnership deed or agreement. In it, the members must state:
This document alongside the personal information of the members must be filed with ACRA for registration, which can be completed in a matter of days.
Another important thing to consider about general partnerships is that they need to be renewed. This can be done for:
If you need assistance in registering such an entity, our Singapore company registration consultants can represent you during and after its establishment.
Just like any other business, A Singapore general partnership also has specific obligations, such as those related to employment and payment of social security contributions. For this purpose, it must register with the Central Provident Fund. Also, as a taxpayer, it must register for tax and GST with the Inland Revenue Authority, as it needs to file a yearly income tax return indicating its income and expense deductions, if any.
Considering partnerships are usually created by professionals, they may also have to register with the required associations and organizations regulating their activities.
You can consult with our local agents on these aspects.
The Singapore general partnership does not pay income tax on its income. Each partner will be taxed on their share of the income resulting from the partnership. If the partner is an individual, the personal income tax applies, while for companies acting as partners in a general partnership, the corporate tax will apply. Also, should it make VAT-taxable supplies, this levy must also be considered.
Singapore is a great state in which small businesses thrive. As a matter of fact, the number of such entities was 143,370 in August 2023. Out of these:
If you want to start this type of company and need assistance you can contact our experts in opening companies in Singapore.