Starting an own business is a dream for multitudinous individuals worldwide. You can incorporate it in several ways, such as a company, partnership firm, sole proprietorship, and limited liability partnership (LLB).
You can choose the type depending on how much capital you want to invest, the stakes you want to hold, the percentage of profits, and the authority you wish to have. Every business type has its distinctive advantages and set of procedures for registration.
In this blog, we will walk you through the steps for registering a partnership firm in the world’s leading business hub – Singapore.
What is a Partnership Firm in Singapore?
A Partnership Firm is a business owned by a minimum of 2 to a maximum of 20 individuals (partners). Any partnership business having 20+ partners must be incorporated as a Company under the Singapore Companies Act.
It is quick and cost-effective to set up a partnership firm in Singapore. For instance, by hiring the company incorporation services of Bestar, you can set up within 48 hours. You can manage and administer it smoothly.
In a partnership firm, partners are business owners having equal or mutually agreed upon authority, responsibilities, profit and risk sharing, assets and liabilities, debts and legal action, and other aspects.
Also, the tax is payable on individual income tax rates compared to corporate ones, as a partnership firm and its partners are considered a single legal entity. Partnerships significantly benefit from adhering to less regulatory compliance requirements than companies.
Partnership Registration Requirements in Singapore
Like every other business type, registering a partnership firm in Singapore has specific requirements, which are as follows:
- An individual can be a PR of Singapore, a Singaporean Citizen, or an EntrePass holder.
- Individuals must be above 18 years of age.
- Identity Documents of each partner (A legal Singapore ID or a valid Passport)
- Residential Address Proof of every partner
From 1 January 1994, all Singaporean Citizens and Permanent Residents must top up their Medisave Account with the CPF Board before partnership firm registration in Singapore.
Note: You might have to submit additional documents and proof for partners. Hence, it is advisable to get a partnership firm registered by a reputed Business Incorporation Service Provider in Singapore like Bestar Services.
We will guide you through the entire process by helping you gather required documents, fill out requisites forms, and tick off eligibility requirements.
Process of Partnership Firm Registration in Singapore
After fulfillment of eligibility requirements, the partners must proceed with the following procedure of registering their partnership firm in Singapore:
The foremost step is selecting the ideal name for a partnership firm. Though it is a challenging task, it must be finalized with extensive brainstorming and must encircle your business offerings. It should be catchy, attention-grabbing, easy-to-spell, and memorable.
You should check the shortlisted names on the ACRA website to see whether it is taken by another business.
You can simplify the name selection process with Bestar Services. Our Business Advisory Consultants will help you pick a perfect business name that matches your firm’s logo, vision, mission, tagline, products, and services.
Refer to our other blog, “How to pick the right name for your Company in Singapore?” for your reference.
Specifying Firm’s Activity
After selecting and registering the firm’s name, you must specify your business’s primary and secondary activities while filling out the application. We recommend referring to the Bizfile+ website for the classification code to choose the corresponding one for your business operations. You can even contact us, and we will help simplify your selection.
After registration of the name and specifying business activities, the next step is registering your partnership’s primary physical office address in Singapore. It is mandatory to have a local Singapore physical address for conducting specified business operations.
You should notify ACRA and have the flexibility to use the partner’s residential address for registering the partnership firm address. For this, the applicants must apply for the Home Office Scheme with the Housing & Development Board (HDB) Singapore.
Appointing a Local Manager
The next step is hiring and appointing a local authorized representative (manager) to supervise your firm activities to ensure it complies with regulatory compliance.
The hired manager must be a resident of Singapore, above 18 years old, and capable of handling legal activities and monitoring business. They must sign a Non-Disqualification document to declare themselves acting as a Manager. It is a mandatory skip and must be done.
Online Registration on Bizfile+ Website
After the local representative appointment, the last step is registering your partnership firm online through the Bizfile+ website. They have mandate fees for partnership registration, which you can choose from.
You can either register for a year or three years, depending on your choice. After fee payment, the application is sent for review and approval, which takes 14 to 60 days.
After reading the blog, you will have fully comprehended what a partnership firm is, its registration requirements, and the process of registering a partnership firm in Singapore. You will be acquainted with its requisites.
Also, you must establish a Partnership Agreement specifying each partner’s roles, responsibilities, authority, profit and risk sharing percentage, and other essential details. It helps to avoid conflicts of interest and maintains transparency amongst all partners. However, if you have any questions, feel free to contact us.
At Bestar Services, we have helped 100s of individuals and businesses to set up their partnership firm in Singapore. Our Singapore Business Advisory Consultants are well-versed in incorporating different business types in Singapore, from gathering documents to filing out applications to meeting post-incorporation requirements.
They have expertise in handling complex cases of all scales and sizes of businesses. Contact us today at +65 62994730 or firstname.lastname@example.org for a consultation about partnership firm registration in Singapore.