The Ultimate Guide to Setting Up a Limited Liability Partnership (LLP) in Malaysia

 

Starting a business in Malaysia comes with several options for legal structures, but one that stands out for many entrepreneurs is the Limited Liability Partnership (LLP). An LLP offers the benefits of a partnership while providing the protection of limited liability, making it an attractive option for professionals, small businesses, and joint ventures. At Consistant Info, a trusted company secretary firm in Malaysia, we’ve helped numerous clients successfully establish their LLPs. Here’s our comprehensive guide to help you through the process.

 

What is an LLP?

A Limited Liability Partnership (LLP) is a corporate entity governed by the Limited Liability Partnerships Act 2012 in Malaysia. It blends the flexibility of a partnership with the benefits of limited liability, ensuring that the personal assets of partners are protected from business debts. This structure is particularly favored by professionals and small business owners looking for a balance between operational flexibility and personal liability protection.

 

Why Choose an LLP?

1. Limited Liability: Partners in an LLP are not personally liable for the debts and obligations of the LLP, ensuring that their personal assets are protected.
2. Operational Flexibility: Unlike traditional companies, an LLP does not require a formal board of directors or company secretary, allowing partners to run the business more flexibly.
3. Tax Efficiency: LLPs are taxed as partnerships, which can result in tax savings compared to traditional companies.
4. Perpetual Succession: The LLP continues to exist regardless of changes in the partnership, providing business continuity.

Step-by-Step Guide to Setting Up an LLP in Malaysia

1. Understand the Legal Framework

Before diving into the registration process, it’s essential to familiarize yourself with the legal requirements under the Limited Liability Partnerships Act 2012. At Consistant Info, we offer personalized consultations to ensure you fully understand and comply with these regulations.

2. Choose a Name for Your LLP

Selecting the right name is a critical first step. The name must be unique and must not resemble any existing LLPs or companies. It also shouldn’t include any prohibited words. Consistant Info can assist in conducting a thorough name search and help you secure a name that meets the criteria set by SSM (Suruhanjaya Syarikat Malaysia).

3. Appoint Partners

An LLP requires at least two partners who can be individuals or corporate entities. It’s crucial to define the roles and responsibilities of each partner clearly. Our team at Consistant Info can help draft a partnership agreement that outlines these roles and sets the foundation for a successful partnership.

4. Prepare the Necessary Documents

The required documents include:

• Form LLP1: Application for LLP registration.
• Identification documents of all partners.
• The registered business address.
• A statutory declaration of compliance.

Our experts at Consistant Info will prepare all necessary documents for you, ensuring everything is in order and compliant with legal standards.

5. Submit the Application

Once all documents are prepared, you can submit your application through the MyLLP portal or at an SSM office. At Consistant Info, we handle the submission process for you, ensuring that your application is complete and correctly filed, minimizing the risk of delays.

6. Obtain Your LLP Certificate

Upon successful registration, SSM will issue a certificate confirming the formation of your LLP. This certificate is essential for opening a bank account, entering into contracts, and conducting business legally in Malaysia.

7. Post-Registration Compliance

After your LLP is registered, it’s crucial to maintain compliance with ongoing obligations such as filing annual declarations, keeping accurate financial records, and notifying SSM of any changes in the partnership. Consistant Info provides comprehensive compliance services to help you stay on top of these requirements and ensure your LLP remains in good standing.

 

Why Choose Consistant Info?

At Consistant Info, we pride ourselves on being more than just a company secretary firm. We are your dedicated partners in business. Our deep expertise in setting up LLPs in Malaysia, combined with our commitment to personalized service, ensures that you receive the best guidance and support every step of the way. From initial registration to ongoing compliance, we are here to help your business thrive.

 

Contact Us

Are you ready to establish your LLP in Malaysia? Reach out to Consistant Info today for expert advice and hands-on assistance. Let us handle the complexities so you can focus on what you do best growing your business.