Limited Partnership (LP) in Singapore — HR & Recruitment Agency Formation Guide
Consider jurisdictions with clear labor leasing laws and favorable payroll tax structures if you plan to act as an Employer of Record (EOR). Data privacy compliance (like GDPR) is critical when handling candidate data.
Last verified: June 13, 2026
Corporate Tax
0.0%
State Tax
0.0%
Formation Cost
$85
Annual Fee
$22
Forming a Limited Partnership (LP) in Singapore as a HR & Recruitment Agency means a total tax burden of 0.0% and an official formation cost of $85. There is no minimum capital requirement. Standard formation takes 3-5 business days, or 1-2 business days expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.
First-year total cost
≈ $3,057
Ongoing (per year)
≈ $2,622
Why Limited Partnership (LP) for HR & Recruitment Agency?
A business model focused on sourcing, vetting, and placing candidates for client companies, or providing comprehensive human resources and payroll management services.
Ideal for
- Headhunters and executive search consultants
- Employer of Record (EOR) startups
- Freelance recruiters
- Global payroll providers
Challenges to watch
- Strict data protection and privacy regulations (GDPR, CCPA)
- Complex cross-border employment and tax laws
- High liability risks regarding employee misclassification
- Licensing requirements for temporary work agencies in many countries
Key decision criteria
- Does the jurisdiction require a specific license to operate a recruitment or staffing agency?
- Are there favorable tax treaties to prevent double taxation for cross-border placements?
- How strict are the local labor laws regarding temporary staffing and contractor classification?
Limited Partnership (LP) formation requirements
Minimum capital
None
Standard timeline
3-5 business days
Expedited timeline
1-2 business days
Local director
Not required
Registered office
Virtual office allowed
Notarization
Not required
A local manager (ordinarily resident in Singapore) must be appointed only if all General Partners are non-resident.
Estimated breakdown (based on avg. $250,000 revenue)
Simulate with your own revenue →
VAT / Sales Tax
Standard rate 9%. Registration threshold: 1,000,000 SGD. Foreign suppliers of digital services 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 HR & Recruitment Agency
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, Wise, and Airwallex offer fully remote onboarding and are highly recommended for foreign-owned LPs.
Supported payment gateways
Remote-friendly accounts
Aspire
Top choice for Singapore startups. Offers multi-currency accounts, corporate cards, and fully remote onboarding.
Wise Business
Excellent for multi-currency transactions and international payments with low conversion fees.
Airwallex
Great alternative for cross-border businesses needing global accounts and payment gateway integration.
Singapore incentives & advantages
Section 13OA Tax Exemption
Tax exemption on specified income from designated investments.
Section 13H Venture Capital Fund Tax Incentive
Zero tax on capital gains and dividend income from qualifying investments.
Limited Partnership (LP) formation steps
Choose an approved business name and reserve it via ACRA's BizFile+ portal.
Appoint at least one General Partner and one Limited Partner.
Engage a Corporate Service Provider (CSP) if all partners are foreigners without Singpass.
Appoint a local manager (ordinarily resident in Singapore) if all General Partners are non-residents.
Draft and sign the Limited Partnership Agreement (LPA) outlining profit distribution and liabilities.
Register the LP via BizFile+ and pay the ACRA registration fees.
Obtain the Unique Entity Number (UEN) and Business Profile from ACRA.
Open a corporate bank account (e.g., Aspire, Wise) using the UEN and Business Profile.
HR & Recruitment Agency FAQ
Do I need a special license to start a recruitment agency?
It depends on the jurisdiction and your exact model. Executive search often requires no license, but temporary staffing or acting as an Employer of Record (EOR) usually requires strict licensing and capital deposits.
Which country is best for a global HR agency?
Countries with strong B2B service sectors, clear employment laws, and extensive double tax treaty networks, such as the UK, Singapore, or Estonia, are popular choices for global HR operations.
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Related terms
Key concepts you'll encounter when forming a HR & Recruitment Agency
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Complete Limited Partnership (LP) guide
Taxes, requirements, banking, compliance
Limited Partnership (LP) cost calculator
One-time and annual cost breakdown
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