Limited Liability Partnership (PLT.)
What is Limited Liability Partnership (PLT.)?
Limited Liability Partnership (PLT.) registration is an alternative business vehicle under Limited Liability Partnerships Act 2012 which combined the characteristic of a company and a conventional partnership. Limited Liability Partnership (PLT.) is governed by Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia) and Limited Liability Partnerships Act 2012. To register a Limited Liability Partnership (PLT.), a minimum 1 compliance officer (partner who is a citizen or permanent resident of Malaysia or company secretary qualified under Companies Act 1965) are required.
Unique features of a Limited Liability Partnership (PLT.) like limited liability protection to partners, lower income tax rate, exempt from financial statement audit, separate legal entity status and perpetual existence make it a recommended type of business entity for millions of small and medium sized businesses. As Limited Liability Partnership (PLT.) is newly introduced in Malaysia at Year 2013, Companies Commission of Malaysia (SSM) allow Conventional Partnership and Private Limited Company (Sdn. Bhd.) to convert to Limited Liability Partnership (PLT.).
Complete Our Form
You need to fill our simple company registration application form and return to us with all partners I/C or passport
1 WORKING DAYS
Verification of Compliance Officer
We will register MyLLP account for the compliance officer. He or she shall visit SSM with his / her photocopy of identity and SSM email
3 WORKING DAYS
Name Search and Sign Documents
We will check availability of your proposed LLP name with SSM, you need to visit our company, sign documents and make payment to us
Your Company Is Ready
We will submit the signed documents to Companies Commission of Malaysia. Certificate of Registration will be issued by SSM and your Company is ready to go
Information Required for Limited Liability Partnership (PLT.) Registration
- Copy of all partners identity card (I/C) or passport (for foreign partner)
- Proposed company name
- Proposed business nature
- Proposed address of the registered office (place to keep statutory documents)
- Ordinary place of residence of every partner
- Details of profit sharing and partners remuneration packages
Advantages of Limited Liability Partnership (PLT.)
Separate Legal Entity
Limited Liability Partnership is a legal entity and a juristic person established under the Limited Liability Partnerships Act 2012. Hence, it has a range of legal capacities including opening of a bank account, hiring of employees, taking on equity or obtaining licenses and more as an independent corporate entity. All partners have no personal liability to the creditors of a company for company’s debts.
Limited Liability Partnership being an artificial person, can acquire, own, enjoy and alienate, property in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., No partner can make a claim upon the property of the company – as long as the company is a going concern.
Ownership of a business can be easily transferred in a company by appointing and removing partners. The new profit sharing and partner remuneration packages can be determined by partners’ meeting minutes or new partnership agreement.
Limited Liability Partnership (PLT.) has ‘perpetual succession’, meaning uninterrupted existence until it is legally dissolved. A company being a separate legal person, is unaffected by the death or other departure of any partners and continues to be in existence irrespective of the changes in ownership.
Exempt from Financial Statement Audit
Limited Liability Partnership (PLT.) can file their annual declaration without engage an external auditor to audit their financial statement.
Lower Income Tax Rate
The highest income tax rate of Limited Liability Partnership (PLT.) is 24% while highest income tax rate of individual can up to 28%. Distribution of income wisely may help in income tax saving.
Factors to Consider in Limited Liability Partnership (PLT.) Name Selection
The name of your company is very important. It is the first impression to your buyers, suppliers and stakeholders. It should, therefore, be relevant, suggestive and attractive. There are various factors that you should keep in mind while naming for your company
Short & Simple
The name should be concise and not be too long. People should be able to pronounce it easily and they should be able to remember your company’s name the first time they hear or read it.
The name of your company should be related to your business. It should fit the company’s branding and corporate identity.
Name of your company should not be same or identical to an existing company or trademark. You can go to www.ssm-einfo.my to check if your company name is identical to others. You should ideally avoid plural or changing just letter Case, spacing or punctuation marks in an existing company name.
The name of your company should end with the suffix “PLT.” in a case of a Limited Liability Partnership (PLT.) and “Sdn. Bhd.” is a case of a Private Limited Company (Sdn. Bhd.).
Should not be illegal / offensive
The name of your company should not be against law. It should not be abusive or against the customs and beliefs of any religion.