LIMITED LIABILITY PARTNERSHIP (LLP)

Different between LLP & Sdn Bhd

Overview

• Although an LLP combines features of a traditional Partnership and a Sdn Bhd, there are still key differences between them

Main Differences

1. Shareholders and Shares
   • LLP: Only has partners, cannot issue shares
   • Sdn Bhd: Has shareholders, can issue shares
2. Number of Members
   • LLP: Minimum 2 partners, no maximum limit
   • Sdn Bhd: Minimum 1 shareholder, maximum 50 shareholders
3. Company Secretary / Compliance Officer
   • LLP: No need for a company secretary, only a Compliance Officer is required
   • Sdn Bhd: Must have a company secretary
4. Audit Requirements
   • LLP: No annual audit required
   • Sdn Bhd: Annual audit is mandatory
5. Annual Filing
   • LLP: Must submit Annual Declaration
   • Sdn Bhd: Must submit Annual Return
6. Conversion
   • LLP: Cannot be converted into a Sdn Bhd
   • Sdn Bhd: Can be converted into an LLP