Can Sdn Bhd become LLP Shareholders？
Basic Principle
- Yes, it can. However, in an LLP, members are called partners, not shareholders, because an LLP is a partnership and cannot issue shares
Natural Person vs. Legal Entity
- Owners of a solo proprietorship and partners in a traditional partnership must be natural persons
- LLPs, Sdn Bhd, Bhd, and Berhad are legal entities, so their shareholders or partners can be either natural persons or legal entities
Summary
- An LLP can be a shareholder of a Sdn Bhd
- A Sdn Bhd can be a partner in an LLP