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Limited Liability Operating Agreement for Singapore

Limited Liability Operating Agreement Template for Singapore

A Limited Liability Operating Agreement under Singapore law is a fouNDAtional document that establishes the governance structure, operational framework, and partner relationships within a Limited Liability Partnership (LLP). Governed by the Limited Liability Partnerships Act 2005, this agreement outlines capital contributions, profit-sharing arrangements, management responsibilities, and decision-making processes while providing partners with limited liability protection under Singapore's robust legal framework.

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What is a Limited Liability Operating Agreement?

The Limited Liability Operating Agreement is essential when establishing an LLP in Singapore, providing the framework for partner relationships and business operations. This document is crucial for businesses seeking to combine partnership flexibility with limited liability protection under Singapore law. It details capital contributions, profit distribution, management structure, partner rights and obligations, and dissolution procedures. The agreement must comply with Singapore's Limited Liability Partnerships Act 2005 and ACRA requirements, making it suitable for professional services, trading companies, and various other business ventures requiring multiple partners with defined roles and responsibilities.

What sections should be included in a Limited Liability Operating Agreement?

1. Parties: Identification and details of all partners/members

2. Background: Context and purpose of establishing the LLP

3. Definitions: Key terms used tHRoughout the agreement

4. Formation and Name: Details of LLP establishment and business name

5. Capital Contributions: Initial and ongoing capital requirements

6. Profit and Loss Distribution: Method of allocating profits and losses

7. Management Structure: Governance and decision-making processes

8. Partners' Rights and Obligations: Core responsibilities and entitlements

9. Meetings and Voting: Procedures for partner meetings and voting

10. Dissolution and Termination: Process for winding up the LLP

What sections are optional to include in a Limited Liability Operating Agreement?

1. Non-Competition: Restrictions on competitive activities - include when partners may have competing interests

2. Intellectual Property Rights: IP ownership and usage rights - include when LLP creates or uses significant IP

3. International Operations: Rules for foreign operations - include when operating across borders

4. Insurance Requirements: MaNDAtory insurance coverage - include for high-risk industries

What schedules should be included in a Limited Liability Operating Agreement?

1. Schedule 1: Initial Capital Contributions: Detailed breakdown of partners' initial investments

2. Schedule 2: Profit Sharing Ratios: Specific percentages for profit distribution

3. Schedule 3: Management Structure: Detailed organizational chart and responsibilities

4. Appendix A: Partner Information: Detailed partner information and contact details

5. Appendix B: Business Plan: Initial business plan and objectives

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Operating Agreement

Cost

Free to use

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