Limited Liability Partnership – FAQ

 

What’s this FAQ for?

We start to roll this post up for Limited Liability Partnership (“LLP”). This post will be updated from time to time as more information is available.

What is LLP?

Starting year 2012, LLP becomes a new form of business in Malaysia besides the Company and the conventional Partnership. It’s alike form of Company without shares but, unlike a conventional partnership, the partners of LLP has limited liability.

Perhaps, the best way to understand what LLP is, is to compare LLP with the nature of a Company (“Sdn Bhd”) as follows:-

Is LLP a separate legal entity?
Yes. LLP is a separate legal entity. Like a Company, a LLP is a business entity separates from its partners and it can sue and be sued.

Is LLP governed by the Companies’ Act, 1965?
No. LLP is governed by the Limited Liability Partnership Act 2012 (641).

Who can form a LLP?
LLP may be formed by any two or more individuals and/or corporates. Even professional individuals, like doctors, accountants and lawyers, can form LLP for their professional practice.

What LLP can do?
LLP can carry out any lawful business with a profit motive.

Is LLP required to file documents with the SSM?
Yes. LLP is required to file certain statutory forms to the SSM, including the Annual Declaration and other forms that are yet to be confirmed by SSM as todate (28/02/2013).

Reference:
1. Limited Liability Partnership.
2. Understanding Limited Liability Partnership and its tax facets.
3. Limited Liability Partnership Regulations 2012.

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