Important note: If you register as a partnership, be sure to sign a partnership agreement and file a copy with MSM to regulate partner relationships. Since I`m a cheapo and I also like freebies, I give this example of Founders Collaboration Agreement/ Partnership Agreement for free for you to use as a guide. What is a limited liability partnership (LLP)? LLP is an alternative business vehicle that offers a hybrid of characteristics between a conventional partnership and a business. Its specificities are those of a conventional partnership in terms of administrative flexibility and a company with regard to the limited liability status granted to its partners. Why LLP in Malaysia? – Providing an alternative business vehicle for the business world that complements the traditional decisions of individual companies, partnerships and businesses (domestic and foreign countries) – Access to limited liability status for partnership companies – A cheaper commercial vehicle What is the legal status of an LLP? An LLP is a separate entity with the legal status of a company. Why choose to register an LLP instead of registering a business or starting a business? The LLP offers the flexibility of the organizational agreement through the partnership agreement, while a company is subject to stricter compliance requirements. On the other hand, the registration of LLP offers the status of limited liability in relation to the registration of a business that exposes the owner to unlimited liability. Is there a restriction on the type of business LLP can use as a business vehicle? No no. It is intended for all kinds of legitimate businesses for the purpose of making a profit. A partnership is a form of unity where two or more people come together to run a business. In Malaysia, there are two types of partnerships, the Conventional Partnership, governed by the Partnership Act 1961 and the Limited Liability Partnership Act 2012. An LLP can be formed by 2 or more individuals or companies. In the case of a partnership, each partner must sign the completed form.
The application form completed for your individual business or the registration of the partnership must then be submitted to the MSM, either through the counter or online via the SSM e-Lodgement Services, available on the MSM website. An individual business or partnership are two types of entity options that are available for starting a business in Malaysia. Registration of an individual company and partnership in Malaysia is an option that is only available to Malaysian citizens or permanent residence holders in Malaysia. You must be at least 18 years of age or older to qualify for this option. This guide contains information on business registration in Malaysia or partnership registration in Malaysia Limited Liability Partnership (“LLP”), another alternative vehicle governed by the new Partnership Act 2012, which combines the characteristics of a business with a conventional partnership.