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LLPProprietary Trading Firm

Limited Liability Partnership (LLP) in Singapore — Proprietary Trading Firm Formation Guide

Choose a jurisdiction with 0% capital gains tax and clear regulations on trading your own funds. Ensure the country has crypto-friendly banking if you trade digital assets.

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 Proprietary Trading Firm 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 Proprietary Trading Firm?

A proprietary trading (prop) firm trades financial instruments like stocks, forex, commodities, or cryptocurrencies using its own corporate capital rather than client funds, keeping 100% of the profits.

Ideal for

  • Algorithmic traders
  • Quantitative analysts
  • Crypto investors
  • Forex traders

Challenges to watch

  • Opening corporate brokerage accounts
  • Navigating complex tax classifications for trading income
  • Securing reliable banking for crypto-to-fiat off-ramps

Key decision criteria

  • Corporate tax vs. capital gains tax rates
  • Whether trading own funds triggers licensing requirements
  • Availability of high-leverage institutional accounts
  • Local substance requirements

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. $500,000 revenue)

Gross Revenue$500,000
Corporate Tax-$0
Formation Cost-$90
Annual Fee-$23
Net Profit$499,887

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 Proprietary Trading Firm

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.

Proprietary Trading Firm FAQ

Do I need a financial license to trade my company's own capital?

In most jurisdictions, trading your own corporate funds does not require a financial services license. However, if you accept outside capital or engage in high-frequency market making, licensing may be triggered.

Which jurisdictions are best for a prop trading firm?

Tax-neutral jurisdictions like the BVI, Cayman Islands, and UAE (Dubai DMCC) are highly popular due to zero capital gains tax and established frameworks for proprietary trading.

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