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What is a Limited Liability Partnership (LLP)?

LLP is an alternative business vehicle offering a hybrid of characteristics between conventional partnership and a company. Its special features are that of a conventional partnership in terms of the flexibility in its administration and a company in terms of the limited liability status conferred to its partners.

Why LLP in Malaysia?

  • -To provide the business community with an alternative             business vehicle to complement the traditional choices of sole proprietorships, partnerships and companies (local and foreign)
    • -To provide access to limited liability status for partnership type businesses
  • -More affordable business vehicle

What is the difference between an LLP and a Company?

  • There are many fundamental differences between an LLP and a company. Amongst others, the differences are:-
  • -No issuance of shares

  • -Flexibility in making decisions

  • -No formal requirement for Annual General Meetings

  • -No requirement to submit financial statements to SSM

  • -Accounts need not be audited.

 

What is the difference between an LLP and a general partnership?

 The LLP offers limited liability to its partners whereby any debts and obligations of the LLP will be borne by the assets of the LLP. In the case of a conventional partnership the partners has unlimited liability jointly and severally in the partnership.