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LLPDigital Products Seller

Limited Liability Partnership (LLP) in Singapore — Digital Products Seller Formation Guide

Focus on jurisdictions that support global payment processors. If selling to EU customers, consider how the jurisdiction handles VAT OSS (One Stop Shop). US LLCs are popular for accessing Stripe, while UK or Estonian companies offer great European integration.

Last verified: June 13, 2026

Corporate Tax

0.0%

State Tax

0.0%

Formation Cost

$90

Annual Fee

$23

Forming a Limited Liability Partnership (LLP) in Singapore as a Digital Products Seller means a total tax burden of 0.0% and an official formation cost of $90. There is no minimum capital requirement. Standard formation takes 1-3 business days, or 1 day expedited. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.

First-year total cost

$2,267

Ongoing (per year)

$1,672

Detailed cost calculator →

Why Limited Liability Partnership (LLP) for Digital Products Seller?

Entrepreneurs selling non-physical goods such as software, e-books, online courses, templates, and digital art. This business model requires a jurisdiction with excellent payment gateway access (like Stripe or PayPal) and clear rules on digital VAT/Sales Tax.

Ideal for

  • E-book authors
  • Online course creators
  • Software and SaaS developers
  • Digital template designers

Challenges to watch

  • Managing global VAT and sales tax compliance
  • High chargeback rates for digital goods
  • Intellectual property protection across borders

Key decision criteria

  • Access to Stripe, PayPal, and other major payment gateways
  • Tax treaties to avoid double taxation on royalties
  • Ease of remote company management and banking

Limited Liability Partnership (LLP) formation requirements

Minimum capital

None

Standard timeline

1-3 business days

Expedited timeline

1 day

Local director

Required

Registered office

Virtual office allowed

Notarization

Not required

An LLP must appoint at least one manager who is ordinarily resident in Singapore (Citizen, Permanent Resident, or eligible Employment Pass holder).

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $60,000 revenue)

Gross Revenue$60,000
Corporate Tax-$0
Formation Cost-$90
Annual Fee-$23
Net Profit$59,887

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 9%. Registration threshold: 1,000,000 SGD. Foreign digital service providers must register for GST under the Overseas Vendor Registration (OVR) regime if their global turnover exceeds SGD 1 million and B2C digital services to Singapore exceed SGD 100,000.

Banking & payments for Digital Products Seller

Opening a traditional bank account in Singapore can be challenging for non-resident founders due to strict KYC and AML regulations, often requiring an in-person visit. However, digital platforms like Aspire and Wise offer fully remote account opening with much higher approval rates for LLPs.

Supported payment gateways

StripePayPalHitPayAdyen2Checkout

Remote-friendly accounts

  • Aspire

    A leading all-in-one finance operating system for businesses in Southeast Asia, offering fully remote account opening.

  • Wise

    Excellent for multi-currency accounts and international transfers with low fees.

  • Revolut Business

    Provides corporate cards, multi-currency accounts, and expense management tools for modern startups.

Singapore incentives & advantages

Enterprise Development Grant (EDG)

Funds up to 50% of qualifying project costs, including third-party consultancy fees, software, and internal manpower.

Limited Liability Partnership (LLP) formation steps

1

Choose and reserve an approved business name with ACRA via the BizFile+ portal (reservation is valid for 120 days).

2

Appoint a minimum of two partners (individuals or corporations) and at least one local resident manager.

3

Secure a local registered office address in Singapore (P.O. Boxes are strictly prohibited).

4

Draft a formal Partnership Agreement to clearly define profit sharing, management responsibilities, and partner exit strategies.

5

Submit the registration application and pay the S$115 registration fee and S$15 name fee to ACRA.

6

Set up the Register of Registrable Controllers (RORC) within 7 days of successful registration.

7

Open a corporate bank account in Singapore using the newly issued Unique Entity Number (UEN) and business profile.

Digital Products Seller FAQ

Do I need to charge VAT on digital products?

Yes, in many jurisdictions like the EU, UK, and parts of the US, you must collect VAT or sales tax based on the customer's location, regardless of where your company is incorporated.

Which country is best for a digital product business?

The US (Wyoming or Delaware LLC) is excellent for Stripe access and low maintenance. Estonia (OÜ) is ideal if you want to keep profits in the company tax-free and need EU market access.

Can I run this business as a digital nomad?

Absolutely. Digital product businesses are location-independent. However, ensure your chosen corporate structure doesn't trigger tax residency issues in the country you are temporarily living in.

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