ACRA’s Requirements for Limited Liability Partnerships That Accountants Must Know
From registering a name to commencing operations, there are several requirements 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 in order to accurately assist their clients to stay compliant. So let’s get you acquainted with the intricacies of registering and forming an LLP with ACRA.
1. A Minimum of 2 Partners
Section 22(1) of the Limited Liability Partnerships Act clearly states that every LLP must have at least 2 partners. If this regulation is not adhered to and the LLP carries on business with less than the required partners for a period of more than 2 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 a resident in Singapore. Furthermore, every person who acts as a manager of the LLP must submit his particulars and consent with 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 put in place to ensure that all the 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 to be capable of paying its debts in the normal course of business or not.
The declaration mentioned above must also entail such particulars of/or information concerning the LLP. Such declaration in subsection 1 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 are filing annual returns in the XBRL format for a private company, a non-profit organization or an LLP. So every accounting firm and practising CPA must know about these standard rules and offences 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/.