What is a partnership in Singapore?

A partnership in Singapore is a business structure where two or more owners (up to 20) share personal liability for all business debts — it is not a separate legal entity, so each partner can be held responsible for obligations incurred by any other partner. It is registered with ACRA and governed by the Partnership Act 1890.

Who typically considers it?

It is commonly considered by small groups of owners who intend to run a business together and want a relatively simple structure, without the administration a company requires. Compare it against an LLP once liability protection matters more than simplicity — an LLP keeps the shared-ownership structure but stops one partner's mistake from reaching the others' personal assets.

Key requirements to set it up

• At least two partners (maximum 20), each at least 18 years old
• A registered business name and Singapore address
• MediSave contributions up to date with the CPF Board for all partners (paid in full or on an active instalment plan)
• An authorised representative where all partners are not ordinarily resident in Singapore

How to register

1. Reserve your business name through ACRA BizFile+ (S$15).
2. Prepare your registration details — business address, business activity and every partner's particulars.
3. Appoint an authorised representative if none of the partners is ordinarily resident in Singapore.
4. Submit the registration through BizFile+ and pay the S$100 registration fee.
5. Receive your UEN and Business Profile once approved — most straightforward applications clear within a few business days; ones referred to another regulator can take 14 to 60 days.

Liability and ownership

Liability: Every partner can be personally responsible for partnership debts, including debts caused by another partner — a partner uninvolved in a bad decision can still be personally liable for it, because the law treats a partnership's obligations as each partner's individual obligation.

Ownership: Two or more partners; it does not issue shares.

Ongoing compliance

Renew the registration — ACRA's one-year (S$30) or three-year (S$90) renewal, up to 60 days before expiry — and keep business and tax records for a minimum of five years; renewal is conditional on every partner's MediSave contributions being up to date with the CPF Board, and late renewal incurs a penalty of up to S$250. Singapore law doesn't require a written partnership agreement, but without one, disputes over profit splits, decisions or an exit default to each partner having equal say and equal exposure — regardless of what was actually agreed informally.

Where this often goes wrong

Partners often assume liability is split the way profits are — a 30% partner assumes they're on the hook for 30% of a debt. In practice, each partner can be pursued for the full amount of a partnership debt, not just their share. Recovering the difference from the other partners is a separate legal step, and not always a successful one.

Indicative setup cost

$115 in ACRA fees: $15 to reserve a name and $100 to register the business. A three-year registration is available for $175 ($15 plus $160). Profits are taxed at personal rates — IRAS's progressive scale tops out at 24% above S$1,000,000 of chargeable income — split and taxed individually according to each partner's share, rather than at flat corporate rates.

What happens after you register

• Put a written partnership agreement in place covering profit split, decisions and exit — without one, the law defaults to equal shares and equal say.
• Open a business bank account using your UEN and Business Profile.
• Keep business and tax records — each partner reports their share on their own personal tax return.
• Set a reminder for your renewal date, one or three years out, before the registration lapses.

Common questions

Do we need a written partnership agreement?

Not legally, but without one, Singapore's default partnership law governs — equal profit shares and equal say, regardless of what you actually agreed among yourselves.

Can a partnership convert to an LLP later?

Yes — ACRA provides a conversion mechanism through BizFile+. All existing partners must become partners of the new LLP, and the conversion fee is $40. The date of conversion becomes the LLP's registration date, and a new registration number is issued.

Can a company be a partner in a partnership?

Yes. A partner can be an individual or a corporate entity. If a company is a partner, the company (not its shareholders or directors) bears the partnership liability — though the unlimited liability exposure may defeat the purpose of incorporating in the first place.

Do I need to register for GST as a partnership?

GST registration is compulsory once the partnership's taxable turnover exceeds S$1 million in any 12-month period, regardless of business structure. Below that threshold, registration is voluntary. The partnership registers for GST under its own name, and all partners share the GST obligations.

Can a foreigner be a partner in a Singapore partnership?

Yes, but if none of the partners is ordinarily resident in Singapore, the partnership must appoint a locally resident authorised representative. Foreign partners who intend to be physically present in Singapore to manage the business must also obtain approval from the Ministry of Manpower.

How long does registration take?

Most straightforward applications are approved within a few business days of payment. Applications referred to another regulator can take 14 to 60 days.

Requirements and fees can change, and regulated activities may have additional rules. Check current ACRA requirements before registering. To compare this structure with the others, return to the master business-structures comparison.