Limited Partnership (LP) in Singapore — Software Development Agency Formation Guide
Consider jurisdictions with strong IP protection laws and favorable corporate tax rates for B2B service exports. Estonia's deferred corporate tax or US LLCs for non-residents are popular choices.
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 Software Development 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 Software Development Agency?
A B2B service business providing custom software engineering, web development, and IT consulting to clients globally. Requires robust invoicing, IP assignment capabilities, and easy cross-border payments.
Ideal for
- Teams of developers
- B2B service providers
- Tech consultancies
- Outsourcing firms
Challenges to watch
- Managing cross-border withholding taxes
- Complex IP assignment and ownership laws
- High banking compliance for large international wire transfers
- Hiring and paying international contractors
Key decision criteria
- Does the jurisdiction have double taxation treaties with your clients' countries?
- Is it easy to open a multi-currency business bank account?
- Are there R&D tax credits or tech-specific incentives?
- How straightforward is it to issue equity or options to key employees?
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. $500,000 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 Software Development 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.
Software Development Agency FAQ
Where is the best place to incorporate a dev agency?
Estonia is great for reinvesting profits without immediate tax, while a US LLC (Wyoming or Delaware) is excellent for global invoicing and accessing US clients.
How do withholding taxes affect my agency?
If your client's country doesn't have a tax treaty with your company's jurisdiction, they might be required by their local laws to withhold a percentage of your invoice amount.
Do I need to charge VAT or GST to my clients?
It depends on the location of your clients. B2B software services exported outside your jurisdiction are often zero-rated, but you must verify local reverse-charge rules.
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Related terms
Key concepts you'll encounter when forming a Software Development Agency
Related guides
Complete Limited Partnership (LP) guide
Taxes, requirements, banking, compliance
Limited Partnership (LP) cost calculator
One-time and annual cost breakdown
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