ACRA’s Requirements for Limited Liability Partnerships That Accountants Must Know
From registering a name to commencing operations, several requirements are involved in forming an LLP (Limited Liability Partnership) with ACRA. Accounting and bookkeeping firms must stay up-to-date with the latest information and compliance requirements laid down by ACRA to accurately assist their clients in staying compliant. So let’s get you acquainted with the intricacies of registering and forming an LLP with ACRA.
ACRA’s XBRL Requirements for Limited Liability Partnerships Firms:
1. A Minimum of 2 Partners
Section 22(1) of the Limited Liability Partnerships Act clearly states that every LLP must have at least two partners. If this regulation is not adhered to and the LLP carries on business with fewer than the required partners for more than two years, the person in charge and the LLP shall be liable jointly for any obligation incurred during that period.
2. A Manager
Section 23(1) of the Limited Liability Partnerships Act states that every LLP must ensure that at least one manager has reached the age of 18 years, is of full legal capacity, and is a resident of Singapore. Furthermore, every person who acts as a manager of the LLP must submit his particulars and consent to the Registrar in the prescribed format.
3. A Registered Office
Section 26 of the LLP Act states that every LLP is required to have a registered office in Singapore. This compliance is implemented to ensure that all communication and notices are addressed to the registered office. The entity may choose to change the address of its registered office but needs to lodge a notification of such change to the Registrar in the prescribed format.
4. Registration of Changes in Particulars
Section 28(1) of the LLP Act states that whenever a change is made in any particulars of the LLP, that change should be reported to the Registrar, specifying the nature and date of change along with any other information necessary.
5. Filing Annual Declaration of Solvency/Insolvency
Section 24(1) of the LLP Acts states that every LLP shall lodge a declaration with the Registrar whether the LLP appears capable of paying its debts in the normal course of business.
The declaration mentioned above must also entail particulars of/or information concerning the LLP. Such declaration in subsection one shall be lodged within 15 months after the registration of the LLP and once every calendar year after that at intervals of not more than 15 months.
ACRA has laid down very specific requirements irrespective of whether you file annual returns in the XBRL format for a private company, a non-profit organization, or an LLP. So every accounting firm and practicing CPA must know about these standard rules and offenses to help their clients comply with ACRA’s filing requirements.
For more information about XBRL compliance services, please speak to a DataTracks expert @ +65-31-583-654 or follow their blog @ https://www.datatracks.com.sg/blog/.