LLP Registration in Malaysia
Your better alternative to an incorporated company.
If you do not want to incorporate a company, the other option is to register a limited liability partnership (LLP). An LLP is a combination of the characteristics of a private limited company and the traditional concept of a partnership. This makes it a great option for professionals, startups and SMEs (particularly, JVs, VCs) who are looking to gain limited liability status whilst accommodating different partners for management flexibility.
Requirements to register an LLP
Do you have what it takes? Here's a quick checklist of the minimum requirements.
Transparent pricing, committed services.
RM 888 | ONE TIME PROFESSIONAL FEES
+ RM 500 (SSM Registration Fees)
We believe in transparency and are committed to building long term relationship with you. Our registration services include the following:
- Checking the proposed LLP name for availability
- Providing clarification or advice on the completed registration form via phone or email
- Preparing all registration forms
- Filing all registration forms with SSM
- Preparing appointment of compliance officer
- Preparing 1 set of certified copy of registration forms
- Certificate of registration
- Delivering documents to your home/office in Malaysia
- Option to add a standard LLP agreement
Frequently Asked Questions
What type of organisations can consider LLP as their suitable business entity?
- Startups/new enterprises
- Professionals (lawyers, accountants, company secretaries)
- Joint ventures
- Venture capitals
What are the main differences between an LLP and a Company?
LLP is not required to issue shares but instead, the ownership of each partner in the LLP is represented by an allocation of partnership units, made in accordance with the capital contribution made by each partner in the LLP. There is also no requirement of submitting audited financial statements to SSM other than keeping such accounting and other records to sufficiently explain the transactions and financial position of the LLP. There is no concept of directors and shareholders; instead they are called compliance officers and partners. Learn more benefits of an LLP here.
Who can be a partner of the LLP?
Any individual or body corporate may be a partner in the LLP. There is no limit to the maximum number of partners in the LLP but there must be a minimum of 2 partners at all times.
What is the tax rate of an LLP?
Where the partner is an individual, his/her share of income from the LLP will be taxed based on his/her personal income tax rate. Where the partner is a body corporate, its share of income from the LLP will be taxed at the corporate tax rate.
Who can be the compliance officer?
The LLP should appoint either one of the partners or a qualified person (such as a company secretary) to be the compliance officer.
What is the role of the compliance officer?
The responsibilities of the compliance officer include registering any changes in registered particulars of the LLP, keeping and maintaining registers and records of the LLP, advising the partners to ensure compliance with LLP law and lodging an annual declaration with the Registrar.
Is it compulsory to draw up a partnership agreement?
It is highly recommended to have one. Even some banks might require it in order for you to open a bank account. In the absence of a written partnership agreement, the Second Schedule of the LLP Act 2012 shall apply.
Can an LLP convert to a private limited company?
No, you have to voluntarily wind up the LLP and after that, incorporate a new company.
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