Question

le ParlilerSump ACL 1901. b) Discuss the meaning and nature of limited liability partnership and its application in Malaysia.

Answer 1

What is LLP

Limited Liability Partnership (LLP) is another or alternate business model to carry out business that has features of a private company and a partnership. LLP provides limited liability status to its partners which safeguard the liability of partners otherwise would be unlimited in case of Partnership. LLP saves cost in comparison with private limited company which has feature of 'limited liability' but cost more compare to partnership.

Application of LLP in Malasia :

The LLP business structure is designed for profit view entities which work lawfully. LLP can be formed by professionals such as Company Secretaries, Lawyers and Chartered Accountants. The LLP is best suitable for new start ups, small and medium enterprises (SMEs), Joint Ventures which are in their early stages of businesses without having to care about their personal assets, personal liabilities and strict compliance requirements.

Registration Procedure :

Following information needed to furnish :

(a) Name of the proposed LLP

(b) General nature of the proposed business

(c) Proposed place of registered office

(d) Name and details of partner of the LLP

(e) Name and details of compliance officers of the LLP

(f) If the LLP is formed for the purposes of carrying on any professional practice, the application shall be accompanied by an approval letter from the governing body to confirm the practice.

(g) Any other relevant information as may be specified by the Registrar.

The Compliance Officer appointed by the LLP will do the registration of LLP.