Description
- A Limited Liability Partnership (LLP) is a hybrid business structure that combines the flexibility of a traditional partnership with the limited liability benefits of a company. LLP incorporation in Malaysia is governed under the Limited Liability Partnerships Act 2012 and regulated by the Companies Commission of Malaysia (SSM).
- This business structure is ideal for startups, SMEs, and professional service firms (e.g., accounting, legal, and consultancy businesses) because it provides legal protection to partners while offering a simpler compliance process compared to a Sdn. Bhd. (private limited company).
GOV Department
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Suruhanjaya Syarikat Malaysia (SSM) / Companies Commission of Malaysia
License Name (Malay)
- Pendaftaran Perkongsian Liabiliti Terhad (PLT)
Details
- LLP is governed under the Limited Liability Partnerships Act 2012
- Suitable for small and medium-sized businesses, startups, and professional firms
- Allows separate legal entity status with limited liability to partners
- Can have a minimum of two (2) partners, which can be individuals or corporate bodies
- Requires registration with SSM and submission of an LLP Agreement
- Annual compliance includes lodging a declaration of solvency and maintaining financial records
Important Rules
- At Least Two Partners – LLP must have at least two partners at all times
- Business Name Approval – Name must be approved by SSM before registration
- Registered Business Address – Must have a valid registered office in Malaysia
- Compliance with LLP Act 2012 – LLP must follow the guidelines set under the act
- Taxation – LLP is taxed at the corporate tax rate, but partners are taxed individually on their share of profits
- Annual Declaration – LLPs must submit an annual declaration to confirm solvency
Compound & Punishment
- Failure to Register LLP Properly – Fine up to RM50,000
- Non-compliance with LLP Act – Fine up to RM100,000 or imprisonment up to 5 years
- Failure to Submit Annual Declaration – Penalty of RM500 per day
- Fraudulent Business Activities – Possible dissolution of LLP and legal action against partners
Advisor
Jeffrey Eh Hao Yih , Director
Jeffrey has been providing expert guidance for businesses dealing with ongoing challenges. With his expertise, he aids clients in strategic business planning, streamlining operations, and enhancing productivity. Additionally, Jeffrey offers diverse business technology services to help digitize traditional businesses effectively.