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Advantages And Disadvantages Of Limited Liability Partnership

830 Words4 Pages

Limited Liability Partnership are a form of business organisation that fall under ACRA of LLP act (Chapter 163 A). the understanding of LLP is based on the partnership right and obligation in the business such as their right in making decision and they are not personally liable to pay the debt cause by the company or business unless the debt are arise because their own fraudulence or negligence. Its governed by the Limited Liability Partnership agreement. Limited liability partnership consists of more than one partners; it can be either indivual or subject or corporation, each partners can have interest in the form of shareholding by percentage without having to make any business decision.
According to Enter Singapore Business, each partner’s contribution has to be disclosed to the Registrar and they also need to report to the Registrar if they want to withdraw the capital contribution. The partners in the business can appoint someone from the partnership members itself to run the business or someone from the outsider who have business experience to be employ to run the business. The LLP are often being found in professional works such ad doctors’ offices or lawyer’s offices. LLP also have many advantages as well as disadvantages.

Advantages of Limited Liability Partnership
According to Singapore Business Law (Tabalujan, Toit-Low, Huan), there are several advantages of Limited liability partnership:
1. The LLP allows partners to incorporate with limited

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