Limited Liability Partnership (LLP)

Limited Liability Partnership combines the characteristics of private company and conventional partnership. It is a separate legal entity. Minimum number of partners required is 2 person.

Unlike Sdn. Bhd., there is no separation between management and ownership. The LLP need to appoint at least one compliance officer to register any changes in the registered particulars of the LLP and keeping and maintaining registers and records of the LLP. The accounts of the LLP need not be audited by the auditors and no appointment of qualified company secretary is required.

LLP has perpetual succession as its existence is not affected by death, bankruptcy and insanity of the partners. The partner’s liability of an LLP is limited to the extent of their capital contribution to the LLP. The risk of investment is lower than the conventional partnership.