A limited liability partnership, is among the common business structures in Singapore. It is a business structure which gives owners a lot of flexibility. Limited Liability Partnership (also known as LLP), has two or more partners that incorporate the partnership entity.
The partnership entity however protects co-partners from liabilities brought about by gross misconduct or negligence from another partner. This is because the LLP is regarded as a body corporate which has a legal personality separate from its partners. Also, LLPs have perpetual succession, and this means that any change in the partners will not affect the rights, liabilities, or even its existence. Being an entity with a legal personality, below are the things an LLP is capable of:
- Acquisition of, and holding property in its name
- Suing and getting sued in its name
- Having a common seal in its name, as well as
- Doing every other thing, that bodies corporate can do lawfully in its name.