What Is a Limited Liability Partnership (LLP)?
LLP is an alternative business business vehicle to carry out business which combines the characteristics of a private company and conventional partnership.
LLP provides limited liability status to its partners and offers the flexibility of internal arrangement through an agreement between the partners.
#1: Salient Features of LLP
- LLP is a body corporate and has legal personality separate from its partners (separate legal entity)
- LLP has perpetual succession
- LLP may do and suffer such acts and things as bodies corporate may lawfully do and suffer
- LLP has unlimited capacity and capable of suing and being sued and capable of acquiring, owning and holding property
#2: Suitable for:
- Professionals (Lawyers, Accountants & Company Secretaries)
- Small and Medium sized businesses
- Join Ventures
- Venture Capitals
#3: Formation of LLP
LLP may be formed:
- by minimum two persons (wholly or part partly individuals or bodies corporate)
- for any lawful business with a view of profit
- in accordance with the terms of the LLP agreement
#4: Registration of LLP
Information Required:
- Proposed name of LLP
- Nature of business
- Address of registered office
- Name and details of partners
- Name and details of compliance officer
#5: LLP formed for professional practice must:
- consist of natural persons of the same profession
- have in force professional indemnity insurance
- obtain approval letter from the profession’s governing body
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| Why Limited Liability Partnership (LLP)? - Less compliance requirement than a Sdn Bhd
- Lower compliance cost than a Sdn Bhd
- More presentable than a normal Partnership
- Income Tax treatment almost 100% same as Sdn Bhd
- SME Rate (17% for YA2019) applicable for first RM500,000 chargeable income
- Year of Assessment based on your preferred Financial Year End, instead of 31st December for normal Partnership.
Tell me more about the Compliance Officer! - Section 27 of the LLP Act 2012
- Similar role as Company Secretary for a Sdn Bhd
- Any Partner, at least 18 years old and Malaysian Citizen/Permanent Resident can be appointed as Compliance Officer; OR
- A person qualified to Act as secretary under the Companies Act 2016 can be appointed as Compliance Officer
- Duties of Compliance Officers including
- answerable for the doing of all acts, matters and things as are required to be done by the LLP, including:
- Maintain documents, to be kept at Registered Office
- notify SSM on changes in particulars within 14 days
- personally liable to all penalties including administrative penalties imposed on the LLP
Read more about LLP from SSM Website here.
Our Fee and Charges
- Name Search @ RM100
- Name Search and Reservation @150
- LLP Registration @ RM1,688
- Annual Declaration @ RM150*^
- Change of Address @ RM100*
- Change of Nature of Business @ RM100*
- Change of Compliance Officer @ RM100*
- Dissolution of LLP @ RM1,000*
* SSM Fee, other disbursement to be charged separately.
^ preparation of Financial Statements to be charged separately.
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