Definition: An arrangement where two or more individuals join together to conduct business with the intention of making profits.
Ownership:
Generally consists of 2 to 20 partners.
If there are more than 20 partners, they must incorporate a company under the Companies Act, Cap. 50, unless it is a professional partnership.
Legal status:
Not considered a separate legal entity.
Partners have unlimited liability.
Can sue or be sued in the name of the partnership.
Cannot hold property in the name of the partnership.
Partners are personally responsible for the debts and losses incurred by the partnership, including those caused by other partners.
Registration requirements:
Minimum age: 18 years or above [Singaporean / Singapore Permanent Resident]. (Note: At least one partner must be a Singapore resident.)
If the partners are not residents of Singapore, a local authorized representative who is ordinarily resident in Singapore must be appointed.
Self-employed individuals must contribute to their Medisave account with the CPF Board before registering or renewing the business.
Undischarged bankrupts require court or Official Assignee's approval to manage a business.
Formalities & expenses:
Quick and straightforward setup process.
Easy administration and management.
Minimal registration costs.
Fewer compliance requirements.
Registration must be renewed annually or every three years.
Set up fees:
SGD 15 for name registration.
SGD 100 for a one-year registration.
SGD 160 for a three-year registration.
Taxes:
Profits are taxed at the partners' personal income tax rates.
Continuity in law:
Continuity depends on the terms outlined in the partnership agreement.
Closing of entities:
Partnership can be terminated by the partners through the cessation of business or dissolution of the partnership.
Non-renewal of registration upon expiration.
The Registrar can cancel the registration if it is not renewed or if the Registrar determines that the business is defunct.
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