LIMITED LIABILITY PARTNERSHIP (LLP)

What is LLP （Limited Liability Partnership)

• Definition: A type of limited liability partnership company in Malaysia (LLP)
• Differences from a traditional Partnership:
  1. Liability
     • Partnership: Partners are personally liable for all debts and obligations
     • LLP: Partners have limited liability, similar to a Sdn Bhd
  2. Legal Status
     • LLP is a separate legal entity (corporate entity) and can hold rights and obligations independently
     • Partnership is composed of natural persons; partners are personally responsible for rights and obligations
  3. Functions and Operations
     • LLP can perform almost any action a natural person can:
       • Has a company registration number
       • Can open bank accounts
       • Can purchase property
       • Can take loans
       • Can invest in stocks
     • Actions must be executed through representatives or managers
  4. Tax Obligations
     • Similar to natural persons, LLP must also file taxes
• Summary: An LLP combines limited liability with the independent legal status of a corporate entity, while retaining the flexibility of a partnership. It serves as a hybrid between a traditional partnership and a private limited company (Sdn Bhd).