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Limited Partnership (LP) in Singapore — Real Estate Investment Formation Guide

Consider setting up a holding company in a tax-efficient jurisdiction (like the UAE or certain US states like Wyoming or Delaware) to own local property-holding LLCs. This isolates liability and optimizes tax on rental income and capital gains.

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 Real Estate Investment 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

Detailed cost calculator →

Why Limited Partnership (LP) for Real Estate Investment?

A business model focused on acquiring, managing, renting, or selling real estate properties for profit. Choosing the right jurisdiction is critical for asset protection, minimizing capital gains taxes, and facilitating cross-border investments.

Ideal for

  • Property developers
  • International landlords
  • REIT managers
  • House flippers
  • Family offices

Challenges to watch

  • High capital requirements
  • Complex local property taxes
  • Strict foreign ownership laws in some countries
  • Illiquidity of assets

Key decision criteria

  • Look for jurisdictions with strong property rights
  • Favorable capital gains tax rates
  • Double taxation treaties (DTTs)
  • Robust asset protection laws

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.

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-$85
Annual Fee-$22
Net Profit$499,893

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 Real Estate Investment

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

StripePayPalXenditAirwallexAdyenHitPay

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

1

Choose an approved business name and reserve it via ACRA's BizFile+ portal.

2

Appoint at least one General Partner and one Limited Partner.

3

Engage a Corporate Service Provider (CSP) if all partners are foreigners without Singpass.

4

Appoint a local manager (ordinarily resident in Singapore) if all General Partners are non-residents.

5

Draft and sign the Limited Partnership Agreement (LPA) outlining profit distribution and liabilities.

6

Register the LP via BizFile+ and pay the ACRA registration fees.

7

Obtain the Unique Entity Number (UEN) and Business Profile from ACRA.

8

Open a corporate bank account (e.g., Aspire, Wise) using the UEN and Business Profile.

Real Estate Investment FAQ

Can a foreign company own real estate directly?

It depends on the country. Many nations require a locally registered entity or impose higher taxes on foreign corporate owners.

Why use an LLC for real estate?

An LLC protects your personal assets from liabilities related to the property, such as tenant lawsuits or debt obligations.

What is a holding company structure in real estate?

It involves a parent company (often in a tax-friendly jurisdiction) owning subsidiary companies that hold individual properties, isolating risk per property.

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