LLP Registration Malaysia (PLT)
INTRODUCTION OF LIMITED LIABILITY PARTNERSHIP (LLP)
A hybrid of a private corporation and a traditional partnership, an LLP is an alternative corporate structure for conducting business. Through a partnership agreement, an LLP grants its participants limited liability status and allows the freedom of internal structure.
In comparison to a sole proprietorship or a traditional partnership, this combination will provide company owners, business man and entrepreneurs with a more organised business setup solutions. compared to a corporation, which is subject to severe compliance requirements under the Companies Act 1965 in the majority of its activities, it offers the freedom of regulating the business operation in line with the partnership agreement while having the limited liability status.
Key characteristics of LLP (PLT)
LLP Register is a type of business entity recognized in Malaysia. In an LLP, partners have limited liability, similar to shareholders in a company, while also having the flexibility and benefits of a partnership structure.
The LLP may be formed by any business group to carry on any lawful business with the view to make profit. However, the main targeted business groups are:
- Professionals (Lawyer, accountant, consultant)
- Small and medium size business
- Joint venture
- Venture capital
- Investment firm
Difference between an LLP and Partnership
The LLP offers limited liability to its partners whereby any debts and obligations of the LLP will be borne by the assets of the LLP. In the case of a conventional partnership, the partners are jointly and severally liable with the firm.
Difference between an LLP and Sdn. Bhd.
There are many fundamental differences between an LLP and a company. Amongst others, the main differences are:
- No issuance of shares
- Flexibility in making decisions
- No formal requirement to convene Annual General Meeting
- No requirement to submit financial statement to SSM
- Accounts no need to audit.
SETUP LIMITED LIABILITY PARTNERSHIP (LLP)
The registration fee for the registration of a new LLP or for the conversion into an LLP is RM500. An LLP may be registered by an application made to the Registrar by furnishing the following information:
- Name of the proposed LLP
- General nature of the proposed business of the LLP
- Proposed registered office of the LLP
- Name and details of every person who is to be a partner of the LLP
- Name and details of compliance officer(s) of the LLP
- If the LLP is formed for the purposes of carrying on any professional practice, the application shall be accompanied by an approval letter from the governing body as specified in the third column of the First Schedule of the LLP Act 2012
- Such other relevant information as may be specified by the SSM Registrar.
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LLP Company Malaysia
Frequently Asked Questions on LLP
- To provide the business community a different type of business entity to go along with the standard options of sole proprietorships, partnerships, and setting up Sendirian Berhad Sdn. Bhd. (both local and foreigners)
- Provide limited liability status for shareholder type business.
- More affordable business solutions.
LLP is a separate entity with the legal status of a body corporate.
The LLP provide the flexibility of business arrangement through partnership agreement, whereas a business is subject to a stricter compliance requirement under the agreement. As opposed to forming a business, which exposes the owner to limitless responsibility, creating an LLP grants the limited liability status.
No, it’s is for all kind of lawful business in Malaysia are welcome to register and setup LLP
No. LLP is intended only for business with profit making purpose.
An LLP can be registered by way of an application made by the SSM Registrar by providing
the following information:
- Purposed your business name of the LLP;
- Business nature
- Address of register office.
- Name of shareholder partner
- Details of compliance officer
- Approval letter
In Malaysia, there must be minimum 2 partners in LIMITED LIABILITY PARTNERSHIP (LLP)
- the registration of the LLP would be contrary to the national security or interests; or
- the proposed business is likely to be used for:
(i) a charitable purpose
(ii) an unlawful purpose
(iii) purposes prejudicial to public peace, welfare or good order or morality in Malaysia.
(iv) Shareholder issue or business name issue
Individuals or bodies corporate or a combination of both.
Yes. However, in the absence of agreement as to any matter set out in the Second Schedule
of the LLP Act 2012, provisions of the Second Schedule relating to that matter shall apply.
Yes. These are the most common form of joint ventures.