Application to set up an Accounting LLPs must comply with these requirements:
- The main function of the Accounting LLP is to provide public accountancy services (i.e. auditing and reporting on financial statements).
- The name of the Accounting LLP is not undesirable or identical to any other business entity.
- Share Capital
- Professional Indemnity Insurance
Requirement on Accounting LLP Name
You can apply for any name as long as it is not:
- offensive or vulgar
- an identical name to any of existing entities registered with ACRA.
Please refer to the Practice Direction No. 7 of 2006: Identical Name Prohibition of for All Accounting Entities(PDF, 143KB) where it sets out the principles for the purpose of determining whether a name is similar to another or perform a search at BizFile+ to check whether your corporation name is identical to an existing entity.
Requirements on Partners
If the Accounting LLP has two partners, one of you must be a public accountant.
If the Accounting LLP has more than two partners, two-thirds of the partners must be public accountants.
The provision of public accountancy services in Singapore have to be under the control and management of partner(s) who are public accountants ordinarily resident in Singapore – also known as “Partners under section 18A(3)(c)” or “Managing Partners”.
Requirement on Share Capital
The share capital of the Accounting LLP must be at least $50,000.
Requirement on Professional Indemnity Insurance
The Accounting LLP shall be covered by professional indemnity insurance of not less than one of the following amounts, whichever is the highest:
- $1 million;
- a sum equal to the total of $500,000 for every corporate practitioner in the accounting ALLP; or
- where applicable, a sum equal to two and a half times the gross income of the Accounting LLP in the last completed financial year of the Accounting LLP, subject to a maximum sum of $50 million.
For the purpose of submitting the application to register an Accounting LLP, quotations provided by the insurer may be accepted. Subsequent to the registration, the Accounting LLP will have to ensure that it is covered by the required insurance amount at all times.