A partnership is a business owned by 2 to 20 partners. The legal status of a partnership can be defined as follows:
- It is not a separate legal entity from the business owners
- The partners are personally liable for all the debts and losses of the partnership
- It can sue or be sued in the partners’ names
To set up a partnership, you must be:
- At least 18 years old
- A Singapore Citizen, Singapore Permanent Resident, or an EntrePass Holder
If you are currently self-employed, you must top up your Medisave account with the CPF Board before you register a business, become a new owner of an existing business, or renew your business registration.
Foreigners who are residing overseas and want to register a partnership must appoint at least one locally resident authorised representative. The foreign owner(s) must also engage a registered filing agent to submit the application with ACRA.
Foreigners who are currently residing in Singapore must seek approval from the MOM before registering a partnership. If any of the proposed partners do not have a SingPass account, the applicants must engage the services of a registered filing agent to submit the application on their behalf.
Note the liability is unlimited in such type of partnership arrangement. Clients may wish to consider choosing a limited liability partnership.