Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
Appdx 5 to Lec 2 - LLPs

Appdx 5 to Lec 2 - LLPs

Ratings: (0)|Views: 38 |Likes:
Published by api-3803117

More info:

Published by: api-3803117 on Oct 17, 2008
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

03/18/2014

pdf

text

original

WHAT IS AN LLP?

An LLP is a new vehicle for doing business in Singapore. This means that in addition to registering a
business or a company in Singapore, interested parties may also choose to register an LLP to carry out
their business activities. The LLP Act will commence on 11 April 2005.
The LLP will give the owners the flexibility of operating as a partnership whilst giving them limited
liability. It combines the benefits of a partnership with those of private limited companies. However
this comes with safeguards in law to minimize abuse and provide protection to parties who deal with
the LLP.
The LLP is a body corporate and has a legal personality separate from its partners. The LLP has
perpetual succession. Any change in the partners of a LLP shall not affect its existence, rights or
liabilities.
An LLP is capable of:

\u2022
Suing and being sued in its name;
\u2022
Acquiring and holding property in its name;
\u2022
Having a common seal in its name; and
\u2022

Doing such other acts and things in its name, as bodies corporate may lawfully do and suffer.
The partners of the LLP will not be held personally liable for any business debts incurred by the LLP.
However a partner may be held personally liable for claims from losses resulting from his own
wrongful act or omission. But a partner shall not be personally liable for such wrongful acts or
omissions of any other partner of the LLP.
An LLP is required to keep such accounting and other records that will sufficiently explain the
transactions and financial position of the LLP. This will enable profit and loss accounts and balance
sheets to be prepared to give a true and fair view of the state of affairs of the LLP. If the LLP does not
do so, the LLP and every partner shall be guilty of an offence. The punishment may be a fine or
imprisonment, or both. In addition, the LLP shall submit to the Registrar an annual declaration of
solvency or insolvency. Such solvency status reported shall be available to the public.

HOW TO REGISTER A NEW LLP?

All applications to register a new LLP must be submitted online via BizFile, ACRA's electronic filing
and information retrieval system. To register the LLP, the applicant may do any of the following:
(a) Log into www.bizfile.gov.sg to submit an online transaction to register a new LLP.
(b) Engage the services of a professional firm or service bureau for assistance in submitting the online
application to register a new LLP.
(c) Call at ACRA in person to submit the online transaction via BizFile at the Self-Help Kiosks. We
have provided 10 Self-Help Kiosks for use by the public.
Once the application is submitted, the system will decide if the application needs to be referred to
another authority for approval or comments. For example, if you intend to carry out activities
involving the setting up of a private school, your application will be referred to the Ministry of
Education, the licensing agency. When an application has been referred to another authority, it may
take 14 days to 2 months before the outcome is known. Click here for the Referral Authorities Table.

If there is no referral required, the applicant may proceed to pay the registration fee of $165
(registration fee of $150 and name approval fee of $15) for registering the new LLP in Singapore.
CONVERSION FROM A BUSINESS OR A COMPANY TO A LLP

A business firm may convert to an LLP if the partners of the business firm are all going to be the
partners of the LLP.
Similarly, a company may convert to a LLP if all the shareholders of the company are going to be the
partners of the LLP and the company has no outstanding security interests in its assets at the time of
application for conversion.
A business firm or a company may convert to an LLP by submitting an online transaction via
www.bizfile.gov.sg. The fee payable for the conversion is $100. Upon conversion, the status of the
business firm or the company will be updated as \u201cConverted to LLP\u201d and the date of conversion will
be the date of registration of the LLP. The LLP will be issued with a new registration number.
You are strongly advised to read the second schedule and third schedule of the LLP Act that include
the effects of conversion and requirements after conversion. You are also encouraged to seek legal
advice if you need further assistance.

NAME OF LLP
Every LLP shall have either the words \u201cLimited Liability Partnership\u201d or \u201cLLP\u201d as part of its name.
The Registrar may refuse to register a new LLP or allow the LLP to change its name to one that is:
\u2022
Undesirable
\u2022
Identical to any other LLP, company or business name
\u2022
Identical to a name being reserved under the Business Registration Act or the Companies Act
\u2022
Of a kind that the Minister has directed the Registrar not to accept for registration.
MANAGER
A manager is defined as any person who is concerned in or takes part in the management of the LLP.

Every LLP must have at least one manager who is ordinarily resident in Singapore. All managers shall
be natural persons of full age and capacity. \u201cOrdinarily resident" means the usual place of stay of a
person. For our purposes, if the person can provide a local residential address and prove that he is
long-staying (i.e. he can legally remain in Singapore for a long period), we can accept that he is
ordinarily resident here.
We accept the following status as indication of permanent residency in Singapore. They are:

a) Singapore citizens;

b) Non-Singapore citizens who possess the following:
i) Singapore Permanent Resident status;
ii) Employment Pass or Approval-In-Principle Employment Pass or
iii) Dependent's Pass

The manager of the LLP must not be:

a) an undischarged bankrupt (unless he has obtained Leave of the High Court or the written
permission of the Official Assignee);
b) disqualified as an unfit manager of insolvent LLPs under section 34 of the LLP Act;
c) disqualified as a manager of a former LLP wound up on grounds of national security or interest and
disqualified to act as a manager;
d) disqualified as a person who was convicted of offences involving fraud or dishonesty, or other
offences connected with formation or management of a LLP;
e) disqualified under Sections 149, 149A or 154 of the Companies Act.

PARTNERS

A partner is defined as any person who has been admitted as a partner in the LLP in accordance with
the LLP agreement.
Every LLP shall have at least 2 partners.
The partner in an LLP may be an individual, a local company, a foreign company or another LLP.

CHANGES IN LLP PARTICULARS

Whenever any change occurs in the particulars of the LLP, the LLP shall within 14 days, lodge with
the Registrar an online transaction via www.bizfile.gov.sg to notify the Registrar of the change. The
fees payable for the various changes are as follows:
Change of LLP Name: $25
Change of Registered Office Address: $10
Change in Business Activity: $10
Entry/Withdrawal of Manager/Partner: $10
Change of Personal Particulars of Manager/Partner: $10
Please note that any change in registered office address shall take effect only upon such lodgment.

MEDISAVE CONTRIBUTIONS

All self-employed persons who intend to be the partners of a new LLP or become the new partner of
an existing LLP or convert from a company or a business into an LLP, are required to top up their
Medisave account with the CPF Board before they can proceed to do any of these things. Please
contact the Central Provident Fund Board (CPFB) at their toll-free number: 1800-227 1188 or click
here for more information on Medisave.
To check on your Medisave status (i.e. whether you have any outstanding Medisave liabilities with the
CPF Board), please login to www.cpf.gov.sg using your NRIC No. If you have outstanding Medisave
liabilities and wish to check on the outstanding amount, please login to www.cpf.gov.sg using your
NRIC No. and SingPass.

Please be informed that with effect from 17 Jan 2004, the CPF Board will only accept the following
modes of payment:
\u2022 GIRO \u2013 please download the application form (GIRO/IBG Form) from the CPF website at

www.cpf.gov.sg.
\u2022 E-payment \u2013 log into the CPF website with your SingPass and pay through the Internet if you have

banking facilities with UOB and DBS.
\u2022 Nets/CashCard/Cheque \u2013 at any of the CPF Offices or
\u2022 Cash \u2013 only at Singapore Post Office (CPF has ceased cash collections at

all its offices).
ANNUAL DECLARATION AND ACCOUNTS

Annual Declaration
Under Section 24(1) of the LLP Act, the manager of every LLP is required to lodge a declaration
stating whether the LLP is solvent or insolvent.
Under Section 24(2), this first annual declaration must be lodged within 15 months from the date of
the registration of the LLP. Subsequent declarations must be lodged once in every calendar year and
not more than 15 months after the lodgment of the last declaration.
The LLP may apply for an extension of time under Section 24(3) for the lodging of the annual
declaration
Accounts
Under Section 25(1) of the LLP Act, the LLP is required to keep accounting and other records which
will explain its transactions and financial position and enable profit and loss accounts and balance
sheets to be prepared.
Section 25(2) provides that the LLP shall retain the accounting records for 7 years.
The Registrar may, by notice in writing to the LLP require the LLP to produce the accounting records
for his inspection within such time and place as may be specified in the notice. This is provided for
under Section 24(4) of the LLP Act.

PUBLICATIONS OF LLP NAME, REGISTRATION NO AND STATEMENT

Every LLP shall ensure that its invoices and official correspondence bear the name of the LLP, the
registration number and a statement that it is registered with limited liability.
In addition, an LLP that was formed upon conversion from a business or company shall also include a
statement that the LLP was, as from the date of registration, converted from a business or a company
to a LLP and the name and registration number of the former entity it converted from. This additional
statement shall be displayed for 12 months commencing 14 days after the date of registration of the
LLP.

CLOSING AN LLP
Winding Up
Members\u2019 Voluntary Winding up

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->