CNPS Advisory PLT (LLP0002391-LGN)

LLP = Limited Liability Partnership 
(in Bahasa, PLT= Perkongsian Liabiliti Terhad)
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.