How To Set Up An Accounting Limited Liability Partnership
Just like any other Limited Liability Partnership (LLP), an Accounting Limited Liability Partnership is recognised as a separate legal entity that can acquire or sell properties, enter into contracts or agreements, or else enjoy an existence that is separate from the partners that compose it.
An Accounting LLP stands by virtue of the Accountants Amendment Act 2006, which gives permission to public accountants to set up such entities to provide public accounting services.
Two laws govern the existence of an Accounting LLP: the Limited Liability Partnerships Act and the Accountants Act. To set up an Accounting LLP, a public accountant must follow all rules stipulating its formation under both Acts.
Apart from aiming to offer accounting services to the general public, an Accounting LLP must also have a paid-up capital of at least S$50,000, and must be composed of at least two-thirds public accountants. Furthermore, it also has to be directly managed by at least one member public accountant who is ordinarily resident in Singapore.
All applicants must lodge their applications to the Public Accountants Oversight Committee (PAOC) using an online form. After approval, they must log in on BizFile and register as an Accounting LLP. Alternatively, applicants can convert an existing LLP to an Accounting LLP. They only need to apply with the PAOC. They must also ensure that they are composed of two-thirds public accountants, and their SSIC code must be “73121-accounting and auditing services (including taxation advisory services).” This is to fulfill the requirements of the Accountants Act to ensure the approval of its application as an Accounting LLP.
An existing accounting firm or corporation may also apply for conversion to an accounting LLP. They must first lodge applications to the PAOC, after which they can apply via the BizFile as an Accounting LLP.
An Accounting LLP must also pay the following fees: S$150 as approval fee under the Accountants Act; S$150 as an LLP registration fee under the LLP Act; S$15 as fee for the approval for each practise name of an accounting firm or accounting LLP; and S$10 for any change in the name of particulars as recorded in the Register of Public Accounting Corporations, the Register of Public Accounting Firms or the Register of Public Accounting LLPs.