- Limited Liability Partnership Setup
- Conversion into LLP
- Annual LLP Services
- Winding up of LLP in Malaysia
In Malaysia, the Limited Liability Partnership (LLP) is an alternative business type regulated under the Limited Liability Partnerships Act 2012. The new business vehicle that the Act introduced is a hybrid between a private company and a conventional partnership. Designed for all lawful business, LLP is suitable for start-ups, small and medium enterprises (SMEs) to grow their businesses as it accords limited liability status to an innocent partner, thus protecting their personal assets from losses or damages due to the action of other partners, and offers flexibility in the internal management of a business. Furthermore, LLP offers flexibility in terms of its formation, maintenance, and termination. With the introduction of LLP, entrepreneurs will have more options to choose the most preferred form of business type.
Limited Liability Partnership Setup
The process of registering an LLP is much simpler than for Sdn Bhds. Here’s a quick rundown of what you should prepare for the registration:
- Get ready with the complete personal details (as required in the registration) of two or more partners are needed for the registration.
- Name your LLP (the official name will end with PLT), check the availability of the proposed before the registration.
- Propose registered office of the LLP.
- The general nature of the proposed business of the LLP.
- The name and details of the chosen compliance officer(s) of the LLP.
- If the LLP is formed for professional practices such as chartered accountants, an approval letter from their respective governing bodies will also be needed.
Conversion into LLP
Companies that are eligible for the conversion into LLP are as follow:
- Conventional partnerships registered under the Registration of Businesses Act 1956 or any partnership established by two or more persons for the purpose of professional practice.
- Private companies incorporated under the Companies Act 1965
In the case of a conversion from a conventional partnership to LLP, the partners of conventional partnership shall continue to be personally liable (jointly and severally with the LLP) for liabilities and obligations incurred prior to the conversion. For the conversion from a private company to LLP, the LLP continue to be liable for liabilities and obligations incurred prior to the conversion.
Annual LLP Services
The annual LLP services include preparation of Annual Declaration documentations, submission of Annual Declaration documents, provision of registered address, advisory on compliance, accounting, and tax matters for limited liability partnerships.
Winding up of LLP in Malaysia
LLP can be dissolved through winding-up by court, voluntary winding-up or striking-off by Registrar. The common mode of dissolving a LLP will be applying for voluntary winding-up, initiated by one of the partners of LLP when the LLP has ceased operations and discharged its debts and liabilities.