How to Start a Limited Liability Partnership in Malaysia

So I recently incorporated mr-stingy as a Limited Liability Partnership (LLP) in my home country of Malaysia.

I looked for information online before I started, but couldn’t find anything comprehensive. So for the benefit of everyone who’s interested to start their own company, I decided to write this guide. Here’s everything I know about starting an LLP.

 

Why a Limited Liability Partnership?

If you haven’t heard of an LLP before, it’s a new business model — the love child between a traditional private limited (Sendirian Berhad) company and a partnership. An LLP offers benefits of a private limited company without its painful reporting requirements.

Private limited companies are great, but they cost a lot, especially for small business owners. Search online, and you’ll find companies offering to help set up a private limited company for about RM 1,500. And it costs at least RM 2,500 per year to maintain (for mandatory expenses like secretary fees, auditor fees and accounting fees).

On the other hand, you can set up an LLP for the price below:

  • Company name reservation: RM 30 (Update 14th Dec 2015: Company name reservation is not mandatory)
  • Registration fees: RM 500
  • Certificate fees: RM 21.20, including GST (Update 14th Dec 2015: This used to cost RM 47.70. Details in Step 14 below)
    (The RM 500 registration fees don’t include your LLP certificate. As to why someone would register a company without wanting a certificate beats me, but anyway…)
  • Total: RM 521.20

And it’ll cost you this much to maintain it yearly:

  • Annual declaration: RM 200

It’s a lot cheaper because you don’t need to do things like have an Annual General Meeting, hire a company secretary, and submit audited financial reports.

But why not form a sole proprietorship or partnership instead? They cost much cheaper. Only RM 60 per year to start and maintain (RM 30 if you’re not creative and use your own name).

Because an LLP is a separate legal entity from its partners. It declares its tax separately from its partners (important, because it can help optimize the tax you pay). And then the most important point of all: like a private limited company, an LLP offers limited liability to its partners.

Meaning even if the LLP is sued and goes bankrupt one day, creditors cannot come after your personal assets. But in a conventional sole proprietorship or partnership — they can and they will.

 

Why Not?

Like many things in Malaysia — the idea behind LLPs is good. But the implementation hasn’t gone so well.

Most people only know the traditional business models like sole proprietorship and private limited, so getting things done can be a pain.

Prime Example: I went to buy a car for my LLP recently and the officers at the Road Transportation Department (Jabatan Pengangkutan Jalan) didn’t know how to do the vehicle transfer. They had never heard of an LLP before. I had to have several discussions and trips to the JPJ office before I could finally get it done.

But anyway, that’s partly why I’m here. To try new things, rough it out, and write about my experiences — hopefully it’ll make some other person’s journey a smoother one.

So here’s how you start a Limited Liability Partnership in Malaysia.

 

1. Register on the MyLLP System

Start by creating an account on the MyLLP system by going to their website here.

*Update 14th Dec 2015 — SSM has upgraded to MyLLP 2.0 so a lot of the screens you’ll see will be different from my screenshots below.

Screenshot of MyLLP Login Page
MyLLP Login Screen

Click on the “Sign Up” button beside “I am new to MyLLP”. Then enter your identification number (can be IC, Army or Police) and details.

Important: For “User Type,” make sure you select “Verified User” (instead of General User), otherwise you won’t be able to continue with the LLP registration.

Once you’ve successfully registered on the system, they’ll email you something that looks like this:

Screenshot of MyLLP Registration

Print a copy. You’ll need it for your visit to the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia, SSM) office.

 

2. Make Your Way to Your Nearest SSM Office

You can find a full list of SSM offices here.

The most convenient one for me is the head office at Menara SSM:

Menara SSM@Sentral
No 7, Jalan Stesen Sentral 5
Kuala Lumpur Sentral, 50623 Kuala Lumpur
Operating Hours: 8:15 AM – 5 :15 PM

It’s about five minutes’ walk from the KL Sentral LRT station:

Map to Menara SSM
There are pedestrian walkways all the way from KL Sentral to Menara SSM. Walk “through” Sooka Sentral to get there
Picture of SSM Building
It’s a tall, “glass” building, but you see this at ground floor

You don’t need to register at the main counter on the ground floor. Just grab the lift and head to Level 17 for LLP matters.

 

3. Take Your Number and Wait for Your Turn

In my experience the staff at Menara SSM are efficient. I’ve never had to wait more than half an hour. And usually my number gets called within ten minutes.

Pass the email you printed in Step 1 (and your IC) to the friendly person at the counter. She will verify your registration and then give you your Login ID and Password.

 

4. Login to the MyLLP System & Reserve Your LLP Name

*Update 26th Sept 2015 — One of my readers (Thanks Jason!) just told me that Steps 4 & 5 are not mandatory. Meaning you can actually go straight to Step 6. I recommend you do it — it’ll save you RM 30!

At Menara SSM, there’s a bunch of computers already hooked up to the MyLLP system. Login to the system using your newly obtained Login ID and Password.

Picture of SSM Computers
Don’t ask me who the girl is. I didn’t say Hi

(You could probably do this at home too, but since I was already there — I used the computers provided.)

Click on “Name Registration” and check if anyone else already has your company name. If not, reserve the name and make the RM 30 payment. I used the credit card option to pay.

Screenshot of LLP Name Registration(The verification and payment steps are identical to the ones in Step 7 and below, so I decided not to include them here)

 

5. Logout, Go Home and Wait

I initially thought that I could complete the registration in one day.

But after paying to reserve the LLP name, I couldn’t find the next step. There was no “Proceed to Registration” button.

Confused, I went to the counter to ask for help.

“You have to wait for three working days,” the lady at the counter said, “and then you can do the registration online.”

 

6. Login to MyLLP and Register

So I waited a few days. Kept logging in to see the status, but it kept saying “Pending Payment”.

The strange thing was the system never emailed me or sent me an alert saying my name reservation was complete. Remember what I said about good ideas, but poor implementation?

*Update 26th Sept 2015 — It seems like this is a common problem if you use SSM’s computers to do the payment in Step 4. My girlfriend used her personal computer for Step 4, and she immediately got approval to proceed.
This is what I recommend now: Skip Steps 4 and 5. And use your own computer to do everything.

Anyway, after a week I couldn’t wait any longer so I decided to try anyway.

I logged back into MyLLP and clicked on “LLP Registration” >> “General Registration”

Then I entered my “Proposed Name” and hit “Search”. (The same name I reserved in Step 4).

Screenshot of Name Search During LLP Registration
Finally getting somewhere!

This time, there was a line in green saying “Please proceed to reservation”.

Click on “Proceed”.

 

7. Clarify Your LLP Name

The next screen is to clarify your LLP name — if the name is unclear or if it’s not in English / Bahasa Malaysia.

It also allows you to add details of an authorization letter. For example, if you use a name that needs permission from a professional body (accountants, lawyers, secretaries).

Leave this blank and click on “Proceed to LLP Registration” if you’re just registering a simple LLP like me.

Screenshot of LLP name verification

 

8. Enter Your LLP Details

The first tab consists of basic information about your business: partnership agreement, address, and nature of business.

And yes, for you solopreneurs — you can use your home address.

Screenshot of LLP Registration Part 1
Basic LLP Information

 

9. Enter Compliance Officer Details

Screenshot of LLP Registration Part 2If you’re a solopreneur, this means you

 

10. Add Your Partner(s) Information

Screenshot of LLP Registration Part 3An LLP needs to have at least two partners…

Screenshot of LLP Registration Part 4But the total number of partners is unlimited!

 

11. Enter Your Business Code(s)

Business codes are numbers which help SSM classify what kind of business you’re involved in.

You can search for business codes directly on the MyLLP system by keying in keywords. Or find the complete list here.

Screenshot of LLP Registration Part 5

Screenshot of LLP Registration Part 6
Choose up to three Business Codes

The closest thing I could find for a blog was “Web Portals”.

Once you’re done, declare that you aren’t lying, and click “Pay and Submit”.

 

12. Make Payment

It costs RM 500 to register an LLP. You can pay either via credit card or online fund transfer:

Screenshot of LLP Payment

Screenshot of LLP Payment Part 2

Screenshot of LLP Payment Part 3

Screenshot of LLP Payment Part 4Success!

 

13. Check Your Email

Once you’ve successfully made payment, Mr. LLP Administrator will send you two emails. The first tells you that you’re now RM 500 poorer. The second is the one below:

Screenshot of Successful LLP Registration EmailCongratulations, you’re now the proud owner of a company!

 

14. Go Back to SSM for Your Certificates

So you’re now the proud joint-owner of a Limited Liability Partnership. Except that you have no proof — other than Mr. LLP Administrator’s email. How will you do things that a company needs to do — like opening a bank account and buying assets?

Right — you’re gonna need your company certificates. But they’re not going to be automatically sent to you. You have to specifically request for them at SSM.

Go back to Level 17, and look for the form below:

Picture of LLP Document Request Form
Used to cost RM 45. Now RM 47.70. Thanks GST!

Take a number, submit the completed form, and make payment (cash only) at the counter.

It’ll take three working days to process. So you’ll have to come back… again!

 

*Update 14th Dec 2015 — You can now purchase a Certificate of Registration (CN5877) directly on the new MyLLP system. It costs only RM 21.20. And saves you a trip to SSM. Basically point number 14 above is no longer valid.

It looks like this:

Screenshot of buying certs on MyLLP 2.0
The new MyLLP looks way better!

 

15. Visit Your Friends at SSM 3 Working Days Later

Since you’ve spent so much time at SSM, you’ve probably already made some friends there. Go back and pay them a visit.

Take a number, wait for your turn, and collect your certificates at the counter. It should take less than five minutes once it’s your turn. Like I said before, Menara SSM staff are really efficient.

And then you can give everyone a goodbye hug. Because you’re finally done!

 

Final Thoughts

So after RM 577.70 and multiple visits to Menara SSM, I finally got everything done. Overall, it was a good experience. The staff at Menara SSM were courteous and professional. The MyLLP system worked OK too. Just a few points for improvement — which I’ll send to SSM:

  • There’s no notification once your Name Reservation is successful.
  • You have to separately apply for LLP certificates. (Do people really start companies without wanting the certificates?)
  • The whole process seems disjointed — half online, and half over-the-counter transactions. Would be good if it was fully online.
  • There’s little documentation on how the process really goes. There’s a lot forms and FAQs online, but no flowcharts showing the full process and timelines. How does the man on the street actually know what to do?
    *Update 14th Dec 2015 — SSM has recently upgraded the MyLLP website. I haven’t tested it in detail yet, but it looks like some problems above have been fixed. And my very helpful readers have been commenting below on the new changes. Thanks guys! Please keep the info coming.

Finally, if you’re thinking it’s such a hassle to go through the whole process — there are companies that will do everything for you. It’ll just cost you a bit more.

And if you’ve made it this far — you’re probably interested in setting up your own company too. Let me know if you have any questions. I wish you the very best.

 

 

*Update 27th December 2016: If you need a professional consultant to help register your LLP or draft your LLP agreement, my partner can help you out. Promotional prices for LLP agreements start from RM 990, and additional services will be charged separately. For more info, please email info@axecute-consultancy.com.

For further information: SSM

Picture at Pexels

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488 comments

  • I try signup a new account. Wonder for “Login Name”, I should fill my full name, or just a User ID for future login purpose? Mind to advise. Thanks.

  • Dear Mr.Stingy, izzit ok for you to share with me your sample of partnership agreement template?
    Thanks in advance

    • Hey Samuel,

      Unfortunately I think an agreement is too important a document to just use a sample. May I suggest you get a lawyer to help you draft yours, or you can contact my partner (link at the bottom of the article) for a quotation. Thanks.

  • Mr Stingy, thanks for your detailed write up.
    I followed your footstep and setup mine in the exact same format.

    by the way, how to get “Original Company Secretary License or Registered Professional Body Membership Certificate”

      • Mr stingy,

        I purchased the a Certificate of Registration online and received soft copy .
        The question is do i need to take the original copy from SSM?
        thanks

        • Hey Jack,

          It depends. If you don’t need the hard copy for anything else, then the soft copy should be good enough.

  • Hi Mr. Stingy,

    Could you email me the contacts of your accountant and lawyer for the LLP agreement and also the tax management quotation?

    Thanks!

  • Any updates for year 2017? Are getting business loans still a possible problem for PLTs?
    What are the advantages of a Sdn Bhd?

    I read a PLT requires a minimum of 2 partners. Can I use a dummy partner e.g. my brother, such that in the partnership agreement, can I transfer 100% of future profits and management rights to myself?

    Where can I find out the latest official tax rate?

    Thanks.

    • Haven’t studied too deeply on getting business loans; but my feeling is banks are slowly getting warmed up to LLPs — definitely not as smooth as Sdn Bhd. Sdn Bhd have been in the game for very long — so people are more comfortable doing business with them. That’s the advantage, apart from being able to convert to Public Listed company at some point in future.

      Yeah, PLT needs at least 2 partners. If your brother agrees to 100% profits and rights to you, I think it can be put in the agreement.

      The latest official tax rate can be found at LHDN’s website. Although I can also tell you here: it’s 25%. But if you’re an SME — it’s 20%.

  • How does the company stamp look? Is it “NAME PLT” and then in the middle the LLP number as such “LLP9999999-LGN”?

    • I don’t think there’s a standard “format” for company stamp. As long as it displays the name and number clearly I guess. I’m not sure about address, but I have that in my company stamp too.

  • Mr Stingy, thanks for your detailed write up.
    I followed your footstep and setup mine in the exact same format.
    Company name approved within a day.

    Kudos and thanks a lot for your kindness to share with the public.

  • Hi Mr Stingy!
    Really informative post, thank you so much.
    Could you please email me the details of your accountant and lawyer for the LLP agreement and also the tax management quotation?
    Thank you

  • Hi Aaron, thanks for documenting this!

    Not sure if this question has been asked since there are tons of comments already (I’m half way through it and still didn’t read it yet). The question is what is the average running cost to maintain the LLP?

    Another question is if dissolving the LLP is costly and troublesome, how long do you expect to run LLP before it becomes worth it?

    I’m in the process of either having my profits channeled to a sole-prop or a LLP. Weighing my options as my sole purpose is on tax savings and possibly owning properties (but this may be 3-4yrs down the road).

    Thanks again!

    • Hi Leslie,

      Average running cost for an LLP? Apart from startup fees, just RM 200 per year for annual declaration. Plenty of free tools online to help with things like accounting, etc.

      I’ve never thought of dissolving my LLP, so erm… it’s been worthwhile for me since Day 1?

      If you’re thinking about tax savings, there is absolutely no tax benefit to running a sole prop (since it’s combined with your own personal income tax anyway), so I think an LLP is vastly superior in that sense.

      • Unfortunately i’m a (very) lazy & sometimes forgetful person and would like to outsource as many tasks as possible 😀

        Alright then! Will lean towards LLP.

        Thanks for the reply!

  • Hi MR-STINGY,

    This is really useful for me. I plan to register LLP company. Can i ask you whether LLP agreement is required upon registration? or i can draft it later after registration? Do you have any information how to file Tax for LLP company?

    Thank you,

  • Is it compulsory to have partners in order for me to register under LLP? Can i register LLP without partners?

  • I am in the process of filing voluntary winding-up from SSM, but it needs the following:
    (a) put up a legal notice on a Bahasa Malaysia newspaper (at least RM500++) and another on a English paper (at least RM500++), then attach the scanned legal notices on the myllp.com.my portal;
    (b) Statutory Declaration Section 50(3) (this one just fill up the form provided);
    (c) Send a notice of voluntary winding-up to inform all your partners by registered post, then attach the scanned proof of posting together with the copies of the notice on the myllp.com.my portal.
    (d) Obtain a notice from the Inlan Revenue Board of Malaysia (LHDN)

    Withdrawal Fee: RM100

    BUT, actual costs for this whole activity would be RM100 + advertisement cost for the legal notices (RM1000++). It is not cheap at all.

    The template of the legal notice is already provided in https://www.ssm.com.my/sites/default/files/guidelines/Guidelines%20on%20LLP%20Voluntary%20Winding%20Up%20%28Revised%20on%2007012015%29_0.pdf .

    • Hey,

      Yeah, but you need at least 1 local partner or a local secretary (to act as your compliance officer).

  • Hi Mr Stingy,
    Great article, just what i needed as a foreigner. Does an LLP have any impact on available Malaysia Grants which met its criteria? And does and LLP also known as SME in Malaysia?

    • Hi Ibrahim,

      Thank you. I’m not aware if LLP has any effect on Malaysian Grants (but I wouldn’t think so). SME definition is usually by amount of annual revenue, not the type of business. So an SME could be an LLP, a sole prop or even a Sdn. Bhd. company.

  • Hi there,

    Appreciate your info here. It was indeed very helpful!
    Just a question here, do you know the business code for selling specialty upon the registration for LLP?
    Thanks in advance.

  • Hi, can I register heavy machineries such as excavator, backhoe, wheeloader, lorry, etc with JPJ under PLT company name?

    • Hi Adrian — it sounds doable. But how to exactly get it done, I’m not 100% sure. I’m thinking you need a face to face meeting with JPJ for this.

  • How long did it took for the SSM website to send you an email? It has been 4 days.

  • Great article …thanks for writing it…

    is there a format to write the agreements with partner? and does it has to be duty stamped?
    since it needs min 2 partners, can one of it is foreigner (say foreigner is your spouse)?

    how many biz types can be registered under llp? in sdn bhd u can reg min 3.

    thx again

    • Thanks Thierry,

      There’s no specific format for agreements, but lawyers can help you draft them. Yes, they need to be stamped.
      Yes, one of the partners can be a foreigner.
      You can register 3 types of business activity at first. I’m not sure if you can add extra, but you’d have to check with SSM.

      • LLP needs min 2 partners, one of the partners must be Malaysian and it allows to have partners of foreigner. My question is that if there is a requirement of the minimum share the Malaysian partner(s) must hold in the company ?

        • Hey Hermann,

          I don’t think there’s a minimum share the Malaysian must hold. Maybe just RM 1 or some small number like that.

  • Dear Mr Stingy,

    First, let me start by saying how much I love your blog. I stumbled upon it by accident, but I’ve been a fan every since.

    Your blogging journey has compelled me to start my own company. Could you email me the contacts of your accountant and lawyer for the LLP agreement and also the tax management quotation?

    Thanks 😀

  • Hi. Good information. I have registered create account on MyLLP system, but there is still no notification email I received from MyLLP. How long will it takes usually to get the email notification?

    • Hi Amin,

      I also encountered the same. Apparently the system is/has been down. I tried calling their customer service hotline and sent multiple emails to enquiry@ssm.com.my. Did it for a month — complete waste of time.

      Instead, call 03-22994523 and look for Encik Mokhtar. Alternatively, call 03-22994628 and look for Pn. Maisarah. Their emails are amokthar[at]ssm[dot]com[dot]my and nmaisarah[at]ssm[dot]com[dot]my. They are the officers in charge of LLP.

      Once you’ve logged your complaint with them, they should send you an email with a reference number. Print out that email and go to 17th floor at Menara SSM and take a number for User ID verification. Following which, come home and do the name search/ reservation.

      FYI, I *just* made payment for registration and not once has this portal actually sent me any verification email. I just keep logging back in, and there’s usually some update on the dashboard. Good luck to all of us, I guess!

      And thanks Aaron / Mr-Stingy for all this information! Hope this comment helps others too!

  • Hi,

    I’m in the middle of setting up own business company and found your awesome info! Thanks for sharing the details.
    I noticed that it require agreement to register LLP, would you mind to share your contacts for getting the agreement done? Appreciate your hardworks & sharing 🙂

  • How does the partners(owners) paid in LLP?
    1. Is it by salary? (Hence, they have to pay individual income tax?)
    2. Is it by shares? (For example, the net income of the company will be divided equally to both of them)

  • Hi Mr Stingy,

    May i know what is the maximum limit of partners for LLP?

    Thanks.

  • Hi, I have paid for the cert & current profile and have been waiting for the notification to download them based on your write up above. While searching for other emails, today I realised that there was an email from MyLLP on this but I think I have missed the window to download the cert & current profile. There is a note in the email that ‘The product order will be available within 7 days from the date of product purchase.’ it is now more that 2 weeks after that email & i dont see the files to download is avail in the order link. How do I get to download the cert & current profile now?

    • Hey Fairul,

      Sorry to hear about your predicament. I’m not very sure on how to proceed next — perhaps you can give SSM a call and see?

  • Hi Mr. Stingy,

    I had stop my business(actually not start yet) which registered under LLP.
    May I know what is the cancellation procedure for LLP?
    What problem will facing if i don’t cancel my LLP?

    Thanks in advance. 🙂

    Neo

  • Hi Mr Stingy,

    I believed you had done your tax declaration with LHDN.

    Can you explain more how you do that?

    Thanks.

    • Hey Hafiz,

      Basically it was just filling up Form PT 2016, and then submitting it to the LHDN branch at Bangi. A more detailed post on that coming soon.

  • Hi, just to check after you sign up as new user on step one, how long you receive email notice from SSM?

  • Hi Mr Stingy,

    Could you email me the contacts of your accountant and lawyer for the LLP agreement and also the tax management quotation?

    Regards’
    Alex Teo

  • Hi Mr-Stingy,

    Thank you for your very informative article! I am in the midst of setting up an LLP. I would like to know how do I file a doing business as (DBA) name for my LLP?

    • Hey Jeremy,

      Thanks for your kind words! I’m not very clear on your question Jeremy — can you explain further? To my knowledge, you can use any name for your LLP as long as someone else hasn’t used it already.

  • Hi Mr. Stingy,

    Thanks so much for your sharing. Benefited alot from it 🙂

    May I know if the company name of LLP will be XXX Sdn. Bhd. as well?

  • Hi Mr-Stingy,

    Could you email me the contacts of your accountant and lawyer for the LLP agreement and also the tax management quotation?

    Thanks!

      • Hi Mr. Stingy.

        I would love to have your company secretary contact who can form my LLP.
        I am foreigner in malaysia on MM2H Visa (Malaysia my second Home)…

        I will appreciate your reply.

        Thanks

        • Hey Abbey,

          Unfortunately I don’t have a company secretary contact who provides company secretary services. Lots of others do though. Good luck!

  • Hi May I know how to change compliance office from one person to another?
    Can It be done in the LLP portal?

    • Hey Nursala,

      I’m not 100% sure on the process. I see there’s a form on SSM website to do it. So perhaps check the LLP portal first, and if not — may need a visit to SSM? Thanks!

  • Hey Stingy,

    Could you email me the contacts of your accountant and lawyer for the LLP agreement and also the tax management quotation? I would like to know for Partnership LLP company can show the partnership Percentage?

      • Hello,

        I would like to set up an LLP company in Malaysia – I am not based in Malaysia but I offer It services to various Clients in Malaysia – I currently have a good candidate but would need to employ her locally for her to work in Malaysia.

        Can you recommend some not so expensive firms that can facilitate the process for to set up a local company to hire this candidate?

        Thank you

  • Hello and a big thanks for this post 🙏 ! I am a foreigner here in Malaysia and would like to sell products online, legally. Classical companies don’t allow me trading; anyway LLP seems to be ok with me if I found a compliance officer resident in Malaysia. Would you agree with me? Thank you

    • Hey Malika,

      What’s the reason that normal companies don’t allow you to trade? An LLP isn’t very different from a normal company. If your trading activity isn’t allowed under a normal company, I don’t think it’d be allowed for an LLP either.

  • Hi Mr Stingy,

    My accountant is unfamiliar with the LLP setup. Would you be able to email me contacts of your accountant and lawyer so that I can get a quote for the agreement and also the tax management portion.
    Thank you.

      • Hi mr. stingy, under the LLP agreement, can we replace the existing partner? how long is the process and how much does it costs?

        supp question: let’s say, mr A is a partner in LLP A, can he be the partner in another LLP B?

        Thanks!

        • Hey Amanda,

          Yeah — of course you can replace the existing partner. I don’t think SSM charges you anything to update the information. The only other cost I can think of is professional fees for amending your LLP Agreement.

          Regarding your other question, if mr A is a partner in LLP A, he can be partner in LLP B, C, D, E… No limits as far as I know.

  • hi i accidentally registered my company “mycompany Perkongsian Liabiliti Terhad” instead of “Mycompany PLT’. Anyone encounter the same mistakes? Will i be able to change it to “PLT” instead? If not in future for anything i will need to write my company in full with the “Perkongsian Liabiliti Terhad’ behind instead of the short form “PLT”..

  • Lot of useful info here. Looking for contact details of the person you recommend to help start an LLP? Thanks in advance.

  • HI there

    I am setting up an LLP and they ask me to resubmit 3 times already.
    And each time it takes 1 day to get back to me.
    So each time they reject, i have to waste another day.
    And each time they reject they dont advise, they just say business address misleading. etc.
    When i tried to call them, no answer, 5 times till the line cut by itself.

    So i am using a service office, but i need to wait for my LLP to be approved so i can use the LLP name to sign for the lease and make payment in LLP name. But SSM says my registered address and biz address is misleading.
    Maybe because they did a search and see that there is another company with the same address.
    So all those using service office cannot be registered LLP? Doesnt make sense right?

    How do people register for a biz with a registered office when they have not even started biz and register w SSM, wouldnt that be illegal biz if you are operating without being a legal entity?

    Also i like to add that their online form is not very good to start with.
    Some fields have the (*) to show that that field is compulsory, so i did not fill up those fields that didnt have the *.
    Then i got rejected the 1st time round, asking me to fill up certain fields, and it wasnt compulsory.
    If it is compulsory then why not just put the (*). Seriously.

    • Hey Noel,

      Sorry to hear about that. Must be very frustrating. I’m sure there’s a way to register LLPs using a service office. My only suggestions is perhaps to go to SSM and try to meet someone senior who might be able to help?

  • thank you for your helpful arricle about LLP.
    My questions are :
    1-for LLP can I get an ID ( visa on my company name ) ?
    2-LLP can. e used to start my barber shop business )

    • Hello Alaa,

      You’re welcome.

      1. I’m not sure about visas and LLPs. You’ll need to check with immigration.
      2. LLP to start a business — why not? That’s what they’re for.

  • Hi Mr Stingy,

    Could you email me the contacts of your accountant and lawyer for the LLP agreement and also the tax management quotation?

  • Hey, if we purchase the certs online, do we still need to pay if we want to get a hard copy from SSM Office? Official copy looks promising than self-print i suppose. haha

    • Hi Joshua,

      I think the soft copy / self-print version should be sufficient. Not sure if SSM has an option to purchase a hard copy anymore though…

  • Hi Aaron,

    Thanks for your great blog post. I have formed a software development partnership with a friend. I have a few questions.
    1. We don’t always work equally on the same project (even sometimes only one of us work on a project). Can we distribute salary on a per-project basis, without a partnership agreement? (but we do agree on specific terms before starting a project).
    2. How often can we change the agreement?
    3. When submitting the LHDN form, do we submit the agreement? we will submit our first in a few months.
    4. Is the tax really 20% of the total income? we don’t make much money it seems like a lot since we both work on this partnership on a part-time basis for the time being.
    5. Can we use all the income for salary, thus avoiding the partnership tax & partners need to pay individually?
    6. Can you share me your lawyer’s contact as well.

    Thanks a lot.

    • Hello Zul,

      Thanks for your kind words.

      Here are my non-LHDN/SSM certified thoughts:
      1. Salary needs to be distributed based on partnership agreement. I imagine it needs to be paid on a monthly basis.
      2. Haven’t seen any restrictions on how many times you can change the agreement.
      3. Not sure about this.
      4. Tax is 20% on profits. (Not revenue.)
      5. It sounds doable, but would I’m not sure on exactly how to do it, and if it would be even worth the effort…
      6. I’ll email you my partner’s email who can provide you consultation on LLP agreements.

  • Hi Mr stingy,

    My accountant is unfamiliar with the LLP setup. Would you be able to email me contacts of your accountant and lawyer so that I can get a quote for the agreement and also the tax management portion?
    Thank you!

    • Hi Rikc,

      Unfortunately I don’t have a sample set of the LLP Agreement, but if you’d like a quotation for someone to help you draft the agreement, feel free to email my partner. Thanks!

  • I have a couple questions and hope you can help to address:

    1) I noticed that there need to be at least 2 partners to establish this company. Can this still work if there is only one person which is myself. I will play both roles – the director and the compliance officer.

    2) I am planning to use this as an Investment Holding Vehicle for my properties. What kind of problems do you anticipate if I am going to acquire more properties and park these properties under this company? Are there going to be any tax complications if I were to sell these properties in the future? And if I park my car under this company, I believe I can also deduct my petrol & maintenance expenses and entertainment expenses under this company.

    3) Say I have 5 properties under this company; how do I assign shares to my two kids? What’s the procedures to follow? And will this be expensive?

    3) As for the LLP Agreement, does it mean that each time we make changes to the remuneration the LLP agreement will need to be amended? And the cost will be similar to when we first create the LLP agreement? Or we can just change it ourselves

    Thanks.

    • Hello Yong,

      1. Nope, an LLP needs at least 2 partners.
      2. Here are some factors to consider: RPGT for companies, which may be higher than for individuals. Whether the banks would offer financing (assuming you’re buying the properties using loans) to your LLP. Profits from your LLP would also be taxed at corporate income tax rates.
      3. LLPs do not have shares. However they have percentage of ownership as specified in the LLP agreement. Yes, every time you make changes to remuneration, the LLP agreement would need to be amended. Assuming the changes are not too difficult, I imagine you’d be able to do it yourself.

  • i have problem. after my successful registration in the LLP website, i login and search my desire company name and try to reserve but can’t find the reserve button… Not sure what’s the problem. DO i need to go to SSM personally?
    TIA

    • Hi Carol,

      Sorry for the late reply. Did you register as a “verified user” (instead of “general user”)? You’ll need to do that, then get verified at a nearby SSM office — before you can proceed with LLP registration.

  • Hi Mr-Stingy,

    1. Can I register 2 LLP in 1 single user (MyLLP system)??? 1st gonna be for my online business (new), 2nd gonna be for my farming business (upgrade from enterprise to LLP)

    2. I’ve check with maybank this morning and realize that they didn’t provide online banking service for LLP which bring me to your this brilliant blog. Through out reading ur blog I notice that CIMB and some foreign banks provide online service for LLP but also notice the service is costly. How much does it cost for LLP & enterprise??? Which bank is the best for online banking service for LLP.

    Thank you for your essential guidelines here. Really really appreciate.

    • Hi Jaziemin,

      1. I’m pretty sure you can register as many LLPs as you want.
      2. Yeah, unfortunately Maybank still doesn’t provide online banking for LLPs. I’mm not sure which is the best bank for online banking service, but you can try checking out these few banks and compare? CIMB, RHB, Public Bank, and the foreign banks (e.g. HongLeong, UOB, OCBC…)

      All the best ahead for your business!

      • Nice blog, I’m also am a fan of MMM.
        I set up my LLP bank account with Public Bank easily enough. I can do most stuff online with them. Can’t get a credit card as yet, you need to be with them for a couple of years before they will consider you for one.

  • Hi, thanks for your post. I am in the midst of looking for options to get my LLP agreement drafted. I see you’ve emailed the contact you have for drafting this. Could you kindly send me the info of this contact as well, please?

  • Hi, thanks very much for your post, it was really helpful. Could I please check if you get a Form 9,24 and 49 with an LLP?

  • Hi Mr-Stingy,

    Could you email me the contacts of your accountant and lawyer for the LLP agreement and also the tax management quotation?

  • Hi Mr. Stingy. Thanks for the great blog on LLP. I would like to enquire whether the first basis period for LLP tax purpose can be longer than 12 months. If yes, what is the maximum period allowed for the first basis period? In addition, do you know the procedure for the voluntarily winding up of an LLP? Also, can I have contact details of someone competent in LLP tax matters who charges reasonable fees. Thanks.

    • Hey Joshua,

      The first basis period for LLP can be longer than 12 months. I think you have up to 18 months (which is also the maximum amount of time you have to do the first LLP Annual Declaration with SSM). I’ve not done any winding up of an LLP myself, but the process described in the LLP Act seems quite straightforward.

      For LLP tax — let me email you a contact.

      All the best!

  • For the accounting and book keeping purposes in an LLP, would you think it would suffice to do the accounting on our own or is it necessary to engage an accountant?

    • Hi Joyce,

      It really depends on the internal capability of your team to do accounts. If it’s a complex business, I’d assume you’d need a proper accountant?

  • Hi, Mr-Stingy,

    What is the financial year ended for LLP Company? or we can set the financial year ended ourselves?

    Thank you.

      • Hi Mr Stingy,
        Let say if I incorporate my LLP on January 24th 2017 so that means the financial year end will be Jan 24th 2018 ?

        Financial year of LLP is in 1 year period right? Please correct me ya.

        • Hey Rara,

          You determine the financial year of the LLP yourself. The only caveat is: “in the case of the first annual declaration, it shall not be lodged not later than eighteen (18) months from the date of registration of the LLP.”

          So in your case, the latest you can lodge the annual declaration is on 23rd July 2018. But you can choose any date before that which you feel is convenient, for example maybe choose financial year end on 31st December every year?

          All the best!

  • Hi,
    i would like to know that if a foreigner wants to register LLP, what will be the benefit in regards of DP10 and DP11. other then that by registration of An LLP do we can import any thing from other countries. is the benefits and business terms are same on LLP like Sdn Bhd.

    thanks in advance

    • Hey Abbasi,

      I’m not familiar with DP10 and DP11. Regarding your other questions, LLPs share some similarities with Sdn. Bhd. companies, but they also have unique features. May I suggest you go through the LLP Act Document to find out full details?

  • Hi Mr. Stingy, do i need the Certificate of Good Standing and Direct Register LLP – Registration of LLP (Certified Copy)? According to your guide, only the Certificate of Registration is mentioned. Please do advise. Thanks!

    • Hey Alex,

      I’ve not seen anyone asking for the Certificate of Good Standing before — so I didn’t get that for myself. I guess it depends on what you want to do. If someone needs it, then you know where to get it now!

  • Hi, that’s a very helpful article. I have some questions which I hope you could answer them. 1) Can LLP hire employees? 2) Is LLP subject to tax? (I know partial of the answer, but hope to know more) 3) IF I operating an e-commerce website, should I or should I not register in any sort of company(sole, LLP or company)?

    • Hey Trey,

      1. Yes of course an LLP can hire employees (like any normal business).
      2. Yes, LLP is subject to taxation like any normal business.
      3. If you’re operating any kind of business — by law you should always register it as a business.

  • I got my LLP set up within two days!! This is something that I’d never expected. Yesterday went over at 4.30pm and verify my account. This morning I logged in and did a direct registration instead of reserving names (after a few try). Went out to do my work and errands… came back home saw that the company is approved!

    Thanks so much for your information Mr-stingy!!

      • I have been searching high and low for someone to give some advice on taxation, accounting and also to draft the LLP agreement. But the price from lawyers would simply be a min of RM3k.

        The reason for the agreement is for salary and remuneration purposes as well as how to go about to maximise the tax deduction and relief allowance. Do u know anyone that could really provide the accounting + tax + agreement and it’s not gonna cost a bomb?
        thanks Mr-Stingy!!!

        • Hey Eva,

          RM 3K seems to be a common price point. Let me contact my partner and ask her if she could potentially give you a better quote. I’ll email you her contact if you’re interested to pursue further?

  • Hi, thank you for your sharing, its very helpful! Just to update you now we can purchase the Certificate of Registration via online and download the certificate within a minute. No longer required to go SSM. Please email me if you need further clarification.

    • Thanks Fat Cat!

      Yeah — it’s much better now. You don’t need to go back to SSM to get the certificate. Thanks for writing in!

  • Many lawyers and accountants are unfamiliar with the LLP setup. Would you be able to email me then contacts of your accountant and lawyer so that I can get a quote for the agreement and also the tax management portion?
    Thanks in advance!

  • It appears that the agreement is only needed when opening the bank account?
    Do you know if we can wait for a few months down the line after LLP creation, before we get the agreement drawn up?

    Also, if there are changes in names of directors in LLP, the agreement will only show the names of directors at the present moment, right?

    • Hey Joyce,

      Strictly speaking, you don’t need an LLP agreement. As in, SSM and the Government doesn’t make it mandatory to have an LLP agreement. However, if you want to deal with outside parties like banks — then they may need the agreement.

      I’m thinking if the LLP changes partners, then you should revise the agreement to reflect this.

  • Hi Mr Stingy,

    I have a question, I am still very new and never opened a company before thus i would like to know how does the taxation works for LLP? I am planning to open an LLP for trading Forex professionally and would like to know if the income from my trading will be taxed? I also plan to employ a secretary and pay myself a salary. Would very much appreciate it if you can help me with this. I would also like to request for a sample copy of your partnership agreement for LLP if it is possible?

    • Hello Naim,

      Yes — income from your trading (like any business income) should be taxed. I don’t have a sample copy of an LLP agreement, but if you’d like to request for a quotation — do let me know.

  • Hi Sir,

    I have a few queries. Appreciate your assistance in these :

    1) How much is the overall charges for the set-up of LLP (inclusive of search & registration fees, etc)?
    2) Do we need to have a “common seal” for LLP

    Thank you.

    Roselin

    • Hi Roselin,

      1. As per the article, strictly speaking registration (not inclusive of certificate) is RM 500.
      2. I guess you’re referring to a company stamp here. Some old-school organizations require this if you deal with them, so it’s a good idea to get one done. (Hint: it can be done for really cheap.)

  • Dear Mr Stingy,
    Great info and do keep up your great work.
    Also do kindly send me your good example of the LLP agreement. Must we file it with a lawyer? Tqvm.

    • Hi Garrett,

      Thanks for your kind comment. Unfortunately I don’t have an example of an LLP agreement — but I could send you a contact to get a quotation if you’d like?

  • Hi Mr Stingy, thanks for your useful information regarding LLP.
    I would like to setup a LLP with my business partner and want to buy a car to run our business.
    I have a question here: May i know which bank in the market will provide car loan for LLP?

    • Hi Peter,

      I’m not sure if the banks will provide car loans for LLP. They’re rather new in the market, so you might actually need to go visit a few banks and talk to them…

  • Dear Mr Stingy,
    Tqvm for the guideline posted on web with rgds LLP. Query abt the LLP agreement. Can we draw up by ourself or need to seek for professional? Pls advice. If can be done by ourselves, can I request for a sample of agreement. TQ

    • Hi Margaret,

      I suggest that you get professional help when it comes to drawing out agreements. If you’d like a quotation from my partner, please let me know?

  • HI MR STINGY,

    Could you please share your contact for drawing up an LLP agreement?

    THANKS

  • Mr Stingy,

    Could you please share your contact for drawing up an LLP agreement?

    thank you.

    jacky

  • Hi Mr Stingy,

    Can you email me the info about the partnership agreement.

    Really Many thanks for your info provided, it help me a lot!!

  • Hi Mr Stingy

    Great information and simple guideline for LLP registration. In a progress of gathering information before registration.

    Could you please share your contact for drawing up an LLP agreement?

  • Hi Mr Stingy,

    What would we do without your blog! Thank you for sharing your immensely frustrating experience with the LLP registration – it definitely made my life easier knowing what (not) to do.

    Could you please share your contact for drawing up an LLP agreement?

    Thanks.

  • Hi Mr Stingy,

    Thanks for the guide. I just registered my company thanks to you 🙂

    Quick question – I have people interested in sponsoring (not own nor invest) into the business but they’d like to be tax exempted. What’s the procedure for this?

    Background info onto the nature of business – I do health awareness activity for kids

    • Hi Mr F,

      I don’t know of any other way, except they would have to put capital into the business and become a partner. Then when the business declares profits, they can have a share of these profits tax-exempt.

      All the best with your company!

  • Hi Mr Stingy,
    Thank you so much for your sharing about LLP.
    I went to SSM today asking regarding the LLP registration.
    Weird that they telling me that LLP are mandated to submit an annual audited report now.
    And the company are not able to register any assets under the name of the LLP.
    Is that true?
    Do you guys come across this?

    • Hi Jeffrey,

      You’re welcome. I think the person who attended to you must have been confused/new. LLP needs to submit an annual declaration — but that is very different from audited financial statements (that a Sdn. Bhd. needs to submit). And the LLP definitely can own assets. Otherwise, there would be no point in having it. After all, what makes the LLP unique is it’s a separate legal entity.

  • Hi, is it feasible to use LLP to hold a commercial property (Shop lot) for tax planning/GST planning purpose?

    • Hello CL Too,

      For tax planning it certainly sounds feasible. But for GST? I don’t see how the type of business entity would effect GST.

  • Thanks Bro. I just registered my company. So easy after reading your blog. only took a few days.

  • Dear Mr. stingy
    I would like to set up a company
    Can I get some professional consultation to help me to set up a company

  • i have drafted the LLP agreement at my own.

    Do u think we need to clearly stated the amount of salary/ remuneration that we going to pay for partner?
    Or just a general statement is good enough? Eg: LLP shall pay such remuneration to partner xxx for his services rendered.
    As salary of partner may change yearly. If we stated the amount, then we need to update the agreement yearly.

    • Hi Renee,

      Yes — the amount of salary should be stated clearly, otherwise I think LHDN might have an issue with it.
      And yes — if the salary changes yearly, the agreement should be updated yearly too.

  • Hello.
    I really liked this article. I really appreciate your efforts highly.
    Hope this is up to date and the info that is here is latest.

  • Good day, Mr Stingy,

    Very informative read for setting up an LLP in Malaysia.

    However, since now the MyLLP website has been fully upgraded to handle everything online.
    Maybe, have you come across anything regarding the Limited Liability Partnership Agreement between the different shareholders? This agreement is needed in order for shareholders to draw salary and remunerations. Since my new LLP will be owned by several shareholders, as a business, you wouldn’t work for free unless you are loaded. Thus, this agreement should be sent online as told by the SSM people. I have went there so many times, that SSM even told me, everything is submitted online, but i cant seem to find any submission heading for LLP agreement in order to draw salary. Are you using your LLP as a normal business? or just as a vehicle to enjoy the benefits of an entity? Do you draw salary from your LLP? And do you know any button in the MyLLP website to submit the LLP agreement online? Been going through it for hours, and i cant seem to find anything. Hope that you have come across incidents like mine, and hoping you would know something like this. Hope to hear from you soon.

    Thanks,
    Sky.

    • Hello Sky,

      There is no requirement and (as you’ve discovered) no way to submit the LLP Agreement online to SSM. I believe the SSM officers must be referring to other things when they say everything is submitted online (perhaps just the registration details?) You can already start paying the salaries once your LLP Agreement is done. No need to submit to SSM.

  • Hi Mr Stingy,

    Thanks for sharing your experience about the registration of LLP, it is awesome 🙂
    By the way, can i check with you whether it is a must to submit form PT through tax agent?
    As per Form PT, there is “bahagian H” which requires us to fill up the information of tax agent.

    Thanks so much!

    • Hello Curry. Thanks for your kind words.

      I believe you don’t need to submit form PT through a tax agent. And should only fill up that part if you’re using a tax agent. If you’re doing it yourself though, better to make sure everything is compliant. All the best!

  • Hi Mr-Stingy,

    I am a writer who just publish a book in Malaysia, as a newbie really not familiar with the Income Tax or Home Ministry in Malaysia. Therefore need your help to answer the questions as below, appreciate if you can clear my doubt.

    1. Should I register SSM as a writer or publisher? Which one is beneficial?
    2. I had my friend from oversea to sponsor my printing cost, should I declare this printing cost in my account?
    3. Is writer entitle to claim RM20K in Income Tax Malaysia at the end of the year when submission of Form B?
    4. The book distributor prefer to deal with individual or Company?
    5. Should I register myself with home ministry?

    Many Thanks.

    • Hello Vivian,

      Not being a book publisher myself, I’m really not the best person to ask. However I’ll give you my opinion:
      1. You can’t really register with SSM as a writer or publisher. With SSM, it’s registering as a sole prop owner / partnership / Sdn. Bhd. company. Unless you are talking about registering your writing business with SSM as a company. There are actually advantages to both earning as an individual and earning as a company. But it depends on a couple of factors — too complex to go through here.
      2. Technically speaking, you should only declare a cost when it’s something you really spent in doing business.
      3. Unsure about your question here. Are you referring to personal income tax rebate given by the government? If you’re declaring tax as an individual — then yes, you get the personal income tax rebate.
      4. Not qualified to give an opinion here.
      5. Again, I’m not qualified to give an opinion here. Sorry.

      Wishing you the very best in your writing.

  • Hi Mr.stingy,

    Thanks for your valuable insight, I’m first time user here. I would like to ask is there any difference if I want to convert sole proprietor into LLP ? I think the name will be taken right?

    • Hi Nicholas,

      You’re welcome. Strictly speaking, I don’t think there’s a way to convert sole proprietor into an LLP. You would need to just register for a new LLP, and I think your name would be available.

      • I was thinking of the same too. Seems like a logical thing to do. Thanks Mr Stingy! Would love to receive your email on the partnership agreement though. Its tricky when drinking buddies become business buddies and things go wrong.

  • Hi Mr Stingy,

    Thank you for your perfect post. It really helps a lot.

    I have already registered my company.

    As stated in your post, we are now able to purchase Certificate of Registration in MyLLP website.

    But I could not find where to purchase it in the website.

    Could you please help me?

    Thank you.

    • Hi Sam,

      You’re welcome. Have you tried the below from the MyLLP dashboard?
      Buy Now! >> Search for your own LLP and select it >> Certificate of Registration >> Add to basket

  • “Meaning even if the LLP is sued and goes bankrupt one day, creditors cannot come after your personal assets. But in a conventional sole proprietorship or partnership — they can and they will.”

    Dear Mr Stingy,
    LLP goes into liquidation as liked Sdn Bhd pursuant to Section 49 of LLP Act 2012.

  • sorry correction on the first question, How much does it cost to make an LLP AGREEMENT and to get it registered?

  • Planning to convert to LLP. For the LLP, how much does it cost to make one and get it registered? Is there a standard sample LLP agreement that we can refer to?

  • hello sir!
    i went by ssm office in sarawak and the officer went on saying that the partnership agreement is quite compulsory.
    however i proceed to submit all the info (same as u) without llp partnership agreement.
    any idea how’s the format for the partnership agreement?
    never seen one before

    • Hello Larry,

      If we look through the LLP act thoroughly, it does say that the partnership agreement is not compulsory. A lawyer should be able to help you draft an agreement — if you’d like to create one. Hope this helps!

  • Hi Mr Stingy,
    This information is so so helpful! Can’t thank you enough for this super clear guideline.

    I have one additional query – I plan to open a child enrichment program centre using the LLP setup. As an LLP, can I issue licenses to others to open up licensed branches of my centre? Or must I be set up as a Sdn Bhd company?

    Appreciate your response. Thank you!

    • Hi Cass,

      You’re very welcome. I’m not 100% sure about whether LLPs can issues licenses. But if you asked me to guess, I’d say that LLPs can do most things that a Sdn. Bhd. can.

  • Great article!
    I just signed up for an account. And i have received the email to say verify my email address which i did and received another email that just say:
    “Dear (my name),

    Please be informed that your MyLLP Portal account has been activated by SSM. Please use the registered login ID:(my login) and password to login here.

    If you have any queries or require any further information please contact our Contact Centre at 603-77214000. We welcome any comments or suggestions you may have on how we can improve our services.

    Yours sincerely,

    MyLLP System”

    It doesnt tell me to go to SSM..do i still have to go?
    Because i have logged in, and did the company name search..but there’s no reserve button.

    Thanks!

    • Thanks SC,

      The system may have changed since I last registered. Perhaps they now allow activation without going to the SSM. Could you try to register the LLP directly (skip the name reservation), and let us know if that works?

      Thanks!

      • HI! I realised it was cos when selecting the User Type, i selected ‘General User’. I should have selected ‘Verified User’.
        Thanks so much!

      • Hi Mr Stingy, I’m just find I’m I’m selected wrong user type as general user…
        but how can I change my user type to verified user??
        I’m try to search all the way at the webpage but still can’t find how to changing the my user type.

        Thank you

        • Hi Johnny,

          I think you need to register again from the beginning. Not sure if you can change the user type once you’ve registered already…

    • Hi,

      You need to choose “verified user” instead of “general user” when you register your account.

  • hi mr stingy
    i just created an LLP, i was trying to change my compliance officer but when i do they rejected me with a reason : You cannot appoint this individual as a compliance officer for this LLP as this individual has not registered as a verified user or a verified professional user.
    can you help?
    Thanks

    • Hi Kate,

      I believe the compliance officer needs to go to SSM, and verify their identity first (submit MyKad, and verify with fingerprint scanner), before you’re able to appoint them as a compliance officer. Hope this helps!

  • Hey mr-stingy, would like to ask you some questions regarding LLP.

    I would like to change my compliance officer but when i do add a new officer. They rejected with a reason : You cannot appoint this individual as a compliance officer for this LLP as this individual has not registered as a verified user or a verified professional user.

    Can you help me with this
    Thanks

    • Hi Josh,

      I believe the compliance officer needs to go to SSM, and verify their identity first (submit MyKad, and verify with fingerprint scanner), before you’re able to appoint them as a compliance officer. Hope this helps!

  • Hi, thank You for the very informative article.

    Could You recommend me a good tax consultant, secretary who is willing to be my compliance officer?

  • Just an update: My LLP is with a foreign partner (investor) and I manage to open a bank account with HLB – no hassle. And HBL has business internet banking.

    Did not know that I need to open a file with LHDN until recently. Hope i’m not in trouble. Did you open your file manually or through their website edaftar?

    Also, please connect me to your lawyer friend for LLP agreement. Thanks.

    • Hello Bernard,

      The black & white requirement to submit form CP204 (a.k.a. estimate tax payable) to the IRB is within 3 months from date of commencement of business.

      That being said, SMEs are not required to furnish an estimate of tax payable for the first 2 years. Confusing? This is what I understand from that:
      i. Submit the form anyway. This is so the IRB can open your company file.
      ii. But leave the “estimate of tax payable” section blank.

      I’ve been a bad boy though, so I haven’t actually opened my file yet. I should really do it soon. 😉

      Regarding my lawyer friend for LLP agreement, I’ll email you.

    • Hi Bernard,
      I was just wondering, did you get some sort of a working permit for your foreign partner?
      I also have a foreign partner who is investing in my LLP and am trying to figure our the working visa and all that.
      Hope to hear from you if you have done this.

      Thanks!

  • Hi mr stingy, whats the special incentives that sdn bhd enjoy whilst LLP doesnt?
    Thank you

    • Hello Low,

      A Sdn. Bhd. can someday be converted into a Berhad company and listed on a stock exchange, whereas an LLP will always be an LLP.

      The other thing: Sdn. Bhd. companies have been around for a long time, so you’ll find it easier to deal with other parties (e.g. LHDN, banks) — since they’re used to dealing with them. With LLPs, there will likely be more hassle, since many people haven’t dealt before with them.

  • Hi Mr. Stingy,

    Thanks for your useful information.
    I would like to ask regarding the duties of the Compliance Office as stated in the general guidelines on LLP registration (http://www.ctim.org.my/file/news/44/01944_SSM%20-%20General%20Guidelines%20on%20LLP%20Registration%20(210213).pdf).

    As stated in pg5 12(d): A compliance officer shall be responsible for “Publishing the LLP’s name and the registration number outside its registered office and place of business as required under section 20 of the LLP Act 2012; ”

    I am planning to registered my LLP with home address as office since I will be doing online business.
    I am wondering whether this rule is strictly apply to online business that without business premise. Can you enlighten me on how you tackle with this for your online business?

    Thanks!

    • Hello Alice,

      Under Section 20 of the LLP Act, it actually says: “Notwithstanding subsection (1), the Registrar may, on the application of a limited liability partnership, exempt the limited liability partnership from all or any requirements under subsection (1) if he is satisfied that it is not practicable for the limited liability partnership to do so.”

      Strictly speaking, you could apply to the Registrar to waive the need to display name and registration number.

      Personally, I haven’t done that myself yet. I doubt that if SSM sends some officers to check my home office, they’ll take much issue with not displaying the name/number. But if they ever do, I’ll make sure to either rectify it to their satisfaction or get a waiver from the Registrar. (If I get fined or anything, I’ll write about it and let everyone know 😉 )

      • Hello,

        Thanks a lot for your prompt response. I will try to ask for the exemption and update later.

          • Hi,

            I tried to ask for exemption at the SSM of Penang, seems like the officer have no idea of the exemption, and advise me to publish the name and registration number. Based on his advice, we can choose to publish in very small size because there are no rules for minimum size.

  • Hello….this was such a helpful post! Thanks so much for penning this. Hopefully, your next write-up is about the do’s and don’ts and the whole annual processes of what else should be done…….cos I think many of of us here may be like me, have-no-idea sorts 🙂

    I am hoping Public Bank is LLP friendly cos Maybank is terrible…..

    • Thanks Jigna,

      Yes that post is somewhere in queue, along the way. Sorry for the wait ya.

      From what I’ve heard, Public Bank is indeed more LLP friendly than Maybank 🙂

  • Thanks a lot for sharing the flow of how to register LLP.
    To issue out cheque, does it need our partner signature too ?

    • Hello Heng,

      You’re welcome. I’m not sure — every bank might have different regulations, so best to check with your bank directly.

  • Hi Mr-stingy,

    For Sdn Bhd conversion to LLP, there is a requirement to send a notification in gazette of the intention to convert to LLP. Any idea how to do this?
    Thanks.

    • Hi Chang,

      I’m not sure myself. Let me try to find out from the SSM. If you manage to find out first, can you share the answer here? Thanks.

  • Hi Mr.Stingy

    now i’m problem about the Bank Registration..

    Bank ask me to give a (LLP Agreement document) & (Resolution), but i checked on Myllp website.. there don’t have (LLP Agreement document). Do i have other way to get that document?

    Thanks.

    • Hello Edword,

      LLP agreement documents can be done by professional lawyers — tailored according to your needs. Let me know if you need a recommendation for a lawyer.

      • Hey Mr-Stingy – awesome work on this post, it’s been really helpful.

        I’ve been reading up on the LLP Entity within the booklet provided by SSM and I wanted to clarify with you the last point of section 4.2 which reads;

        “Is there any requirement for a minimum number of partners to have principal or only place of residence in Malaysia?
        No. The requirement to be ordinarily residing in Malaysia is applicable only when a partner is also acting as the compliance officer of the LLP.”

        It seems to me that there is no requirement for Partners to be local Malaysian residents, only that the Compliance Officer is, and only if the Partner is also the Compliance Officer. So a totally foreign owned LLP can exist provided the nominated office is Malaysian.

        Do you understand this differently?

        Reference – http://www.ctim.org.my/file/news/44/01961_Limited%20Liability%20Partnership%20(LLP)%20Booklet%20(060313).pdf

        • Hi Matt,

          Thanks for your compliment. I appreciate it.

          After some further reading, I think you’re correct — a foreign-owned LLP can exist under the below circumstances:
          a. The Compliance Officer is a Malaysian resident
          b. The LLP is registered in Malaysia

          (Sorry if any of my previous comments created any confusion.)

  • Hi…Mr Stingy..I am at the other end of the stick and want to get out of my LLP business and agreement…could do with some advice as to where or who I can contact and what to do to ensure I exit smoothly. Scenario is …my business partner will buy me out. I am not sure if the process will be like the conventional partnership where the whole partnership is dissolved and they set up new a partnership or can they just switch names? We have bank account, rental agreements, EPF and SOCSO registration under the partnership name. Thank you in advance…

    • Hello Lim,

      Without knowing too much about your situation:
      1. Your business partner can buy you out and the LLP can continue as before (assuming he still has another partner). You will just need to update the particulars with SSM that you are no longer a partner.
      2. In my opinion, if all your EPF, rental agreements, bank accounts, etc. are registered under your LLP name — then it should be business as usual. Just that the LLP needs to inform everyone that you are no longer a partner.

      This document might be of interest to you btw. Section 24:
      http://www.federalgazette.agc.gov.my/outputaktap/20120209_743_BI_JW001761%20Act%20743-BI.pdf

  • Hi Mr Stingy,

    Thx so much for your guidance.
    I have registered my co as an PLT. However I not sure of their accounting format. Will u give us a template as to how to draw it’s final account? Do u know anyone who can help in setting up PLT accounts? TIA.

    • Hello Ms. Ang,

      You’re welcome. There are no firm and hard rules regarding accounting formats for PLTs. As long as you keep accurate accounting records (you don’t even need to have it audited). If you’d like an free online app that can help do accounting, check out: https://www.waveapps.com/.

      If you’d like someone to help do it for you, I can refer you to someone. Do check your email. Thanks!

  • LLP can then changed into Sdn Bhd right? Do send me consultancy contact. I have 6 shareholders currently.

    • Hello Gan,

      I think there is no direct conversion from LLP into Sdn. Bhd. You would have to “wind up” your LLP and then start a new Sdn. Bhd.
      I’ll ask for the LLP consultants to email you.

  • Hi Mr. Stingy, just wanna say this is a great guide! Keep up the good work! Really appreciate it

  • Hello Mr Stingy

    I had registered my LLP and going to open current account at a bank. But the bank says they have no online banking for LLP. We could only do transaction by the cheque book & otc. We could call the bank to inquire account balance.

    Do you know any bank that has sync their online banking for LLP? If none, how do you feel managing your LLP without the convenience of online banking? Thanks

    • Hi Faisal,

      Could I know what bank is it that you’re currently using?

      I know for sure that Public Bank has online banking for LLPs. I’m not sure about other banks, but if anyone has some helpful information do share. And I would definitely only manage an LLP using an online banking account.

    • Maybank2u doesn’t allow LLP_ in their system. RHB and HLB don’t have problem with LLP.

        • Hi, does this also mean with the above mentioned banks, we won’t be able to take any sorta loans? For example a car loan under Maybank? Or an SME loan.

          • Hi Ganesh,

            Eric’s comment above is referring to online banking i.e. Maybank currently doesn’t offer online banking for LLPs. For loans it would be a completely different thing.

  • Hi Mr Stingy,

    Great information you have here. I received an email from SSM reminding me to do my annual declaration. I just submitted the annual declaration. There are a few enquiries as below.

    1) How do i make the payment fees of RM200?
    2) Can i make the payment online or I have to go to SSM personally and pay at the counter?
    3) Do i have to submit to LHDN ? For your info, we registered our LLP on 24 July, 2014.
    4) How do i update the correspondence and registered address in the system as I can’t seem to find the option for doing it.

    Many thanks and regards.

    • Hi Jehan,

      Thanks for your kind words. I don’t really have great answers for you, but let me try:
      1. I’m not exactly sure how to make the payment. Isn’t there a payment option on the online system?
      2. As above. Hopefully you can do it online.
      3. You need to submit to LHDN. Depending on what month your financial year (which you choose) ends, you need to submit the LLP Return Form within 7 months from the closing of your financial year. So for example, if your financial year ends on 31st July 2015, you need to submit your LLP Return Form by 28th February 2016. And you need to do it every year.
      (Sample here: http://www.hasil.gov.my/pdf/pdfborang/Form_PT2015_2.pdf)
      4. E-Forms >> Change of Particulars

  • Hi ,

    I don’t know how to prepared the annual compliance and annual declaration to SSM .
    i.e.
    “Must lodge an annual declaration and solvency statement with CCM (the 1st within 18 months from the date of registration and thereafter, 90 days from the end of the financial year)”

    If Im going to venturing into online entrepreneurship like you, means in the business job scope selection; web portal, selling stuffs online without stall , store, shop, upon registering LLP, what sort of self draft declaration document to submit? Do you have any friend who doing this paperwork?

    I just knew LLP doesn’t require annual statutory audit

    Hear from you

    Eddie

  • Hi,

    The overall of your procedure to set up a LLP was so clear and details..
    Can you write a new post to show the whole step and procedure on manage , records company account, maintainance and the government side to submit related tax declaration on running the LLP whole financial year?

    Really appreciate your sharing as I also intends to venturing a same line as you do, ( web portal/ blogging, selling stuffs online)

    I have no idea how to do all those work flows ( account records and managing, LHDN matters and filing) after
    registration as LLP as you have shown.

    Can you post your part 2 in a new post?

    Thanks

    Eddie

    • Hello Eddie,

      Thanks for dropping by. I am planning to write an article about how to file for LHDN taxes for LLP, but it might take a while. Thanks for the suggestion!

      • Wow .. this is great . Looking forward for your new post on this matter . Will come back to read your site time to time . Thanks

        Eddie

  • Aaron, just read your write out and comment ..will continue reading when free..

    Good and well done..

    min chi

  • Hi mr.stingy.yr post is highly appreciated tq. i hv been researching abt one thg which is.. if i hav got a foreign partner in my LLP wil he be able to get visa into the country through the name of our LLP set up? for example business visa for arnd 2 yrs mayb? does LLP hav the power of it? tq..

    • Hi Huda,

      Unfortunately I don’t know much about LLP and visas. Hope you manage to work things out.

  • Hi Mr Stingy
    Thank you for sharing this great information on LLP. I enjoyed reading your blog and all the comments from the readers. I also handle tax matters for LLP or and business entities

  • Yo! Great article its help me out alot. some question over the registration of LLP.
    1. After i register my LLP and get approved by SSM. What to do next? Am I require to draft a LLP Partnership Agreement and make it legal and submit to SSM and after that I can run the business using the registered LLP officially?

    • Yo Lee Ming!

      You can run an LLP without an LLP agreement. And even if you do have an LLP agreement, I haven’t seen any requirement for you to submit it to SSM. In my opinion, as long as you keep your LLP agreement + amendments in your registered office — you are good to start running the business.

  • Hi Mr. Stingy, so glad to find your post here.

    I’ve been trying to find out if I can upload my partnership agreement at the “ATTACHMENT” stage. It’s 1 step before payment. Do you happen to know that? I just wanted to make sure I meet the 30-day name reservation deadline.

    As for my business commencement – should it follow the date of my partnership agreement or the date of my LLP registration?

    I’ve been asking Mr. Google but wasnt fruitful. Hope you can help but no pressure 🙂

    • Hello Karel,

      Hmmmm… to your first question, I think you can — but I haven’t done it myself — so I’m not sure.

      As for business commencement, I haven’t come across any black and white rules on that — I guess choose the one that makes most sense for you?

      Sorry I couldn’t help much!

  • Hi Mr. Stingy, thanks for initial this LLP sharing session. It is useful for me. I have converted my sole proprietor business to LLP. This entity is not well manage yet. It is hard to obtain information how to manage it. Do you know is there any company provide the service/advise for the LLP tax submission?

    • Hello Ling,

      Yes, I do know a company that can provide consultancy / advice on LLP tax. Would you like me to email you her contact? Thanks.

      • Hi Mr. Stingy, can I have the same contact as well.

        I’m currently self-employed with a pretty much fixed monthly income, running under sole-proprietorship since few years ago. Had been doing income tax calculation/optimization according to my own probably-not-so-correct logic.

        Recently had been searching for info on doing the tax clean and correctly, but felt probably would be better if an expert could provide consultancy on tax optimization suited for my case, and whether it would be better to run under LLP instead of my current sole-proprietor.

        Thanks!

          • Hi Mr. Stingy pls email to me as well for my future LLP. I have a question, what kind of paperwork that are compulsory under LLP? LLP no need to audit right?

          • Hi Eka,

            Emailed you already. Annual paperwork that is compulsory for LLP is the LLP annual declaration to SSM. You will also need to submit tax estimate form and tax filing form to LHDN. And yes, the accounts do not need to be audited by professional auditors.

      • Dear Ling,
        Do you mind to share how to convert a sole prop business to LLP. I would like to do the same for my business. TIA

        • Hi Alia,

          I believe there is no direct conversion from a sole prop to an LLP. You’ll need to register the LLP as a new business, but you could probably use the same name as your sole prop.

      • Hi Mr Stingy,
        Can I request the contact details of the company that provide service(s) of setting up LLP
        Please email.Thanks

  • Dear Sir

    I have a running LLP at the moment, and looking to “optimize” my LLP tax for this year by including partner’s salary in the agreement. I have a couple of questions which I hope you may be able to enlighten me with.

    1. Salary drawn by the partners have to be in black & white in the salary agreement ?
    2. Without it, can the salary be considered tax deductible ?
    3. Do we need to update SSM we have drafted an agreement, post company setup to qualify salary as tax deductible ?
    4. Stamp duty required on the agreement ?
    5. My FY is December, when is the latest I have to submit to Hasil for my LLP ?

    I thank you in advance for the time.

    • Hello Kev,

      I have no tax qualifications, so do take my words as just a personal opinion:
      1. Yes.
      2. No.
      3. Don’t think so.
      4. Hmmm… not really sure about this one.
      5. I’m pretty sure if you close your FY in December, you need to submit your tax returns by 30th June the next year. (Do check!)

  • Hi Mr Stingy,

    Thanks for your detailed guideline, but I would like to ask a few questions:

    1. I have registered a conventional partnership last year, and would like to change to LLP once it’s expired (by June). Is that true that I can only able to use the same company name after it’s expired? Or I need a new Company Name for my LLP? Currently, when I check the availability of the name, it mentioned already used.

    2. For bank accounts, do I also need to close the previous bank account set up for this conventional partnership and open a new bank account? Or I can just change the name and update the banks with new details?

    3. I only received an email about myLLP portal account has been activated by SSM, but did not see the one that you mentioned the documents to bring over to SSM counter. Do I expect to that particular email in the next few days?

    Looking forward to your reply!

    • Hi Carmen,

      Thanks, but tough questions you have:
      1. I’m not really sure about this. Might need a call to SSM to clarify?
      2. This would really depend on the bank…
      3. I would wait for this email for a few days… then call.. then head over to SSM anyway to check

  • Hi Mr-Stingy,

    Thank you for the wonderful post on LLP. It is really helpful to me and my partners who is working on a new start-up.
    Just some questions on the MyLLP Portal – after successfully registered a MyLLP account I received a welcome email saying that my portal account has been activated by SSM. The heading of the email is a reference no that goes like: CE1234 and that’s all. There is no instruction saying that I need to go SSM to validate the account.

    And when I login to MyLLP there is not “E-form” tab. I still can perform name searches but I cannot reserve nor register.

    Do I have to go to SSM personally to validate the account? Can one of the partners represent me (who registered the account)?

    Thanks!

    • Hello Peter,

      Thanks for your compliments. I’m not 100% certain if someone other than the person who registered the account can go to SSM to validate. When you apply for the MyLLP account, do you need to give particulars like your IC number? If you ask me — that’s the crucial part, because when you go to SSM to validate — they use your IC to check.

      So I’m thinking if you keyed in your IC to register for MyLLP — you’ll probably need to go verify yourself. Otherwise, maybe a call to the SSM officers could help?

      • Hi Mr Stingy,

        I visited the SSM branch and managed to sort things out. Apparently we have to register our account on myllp website as verified user. So I have to start over again and revisit the SSM office.

        Now I have successfully registered my LLP with 2 other partners (after a couple of re-submission attempts due to LLP name too generic, partners name and address have to be in CAPS, etc…).

        I proceed to purchase the Certificate of Registration and LLP Profile on the LLP website for future use (opening of bank account), after made the payment online I received an email saying that the order will be ready in 7 days time. Today i logon to LLP and i saw the 2 files are ready to download. And so i have now the 2 files in PDF format.

        My question is – do i still need to collect the hardcopy from SSM office? Just like what you mentioned in your blog? I tried searching online for answer but i couldn’t find any.

        If any readers here have gone through this before please let me know.

        Thanks!

        • Hi Peter,

          Glad to hear that you’ve made lots of progress!

          To clarify — I wrote the article a little while back, so there was no way to purchase/download the documents online (MyLLP version 1 — I like to call it). You had to go directly to SSM to do it. I understand with the new version of MyLLP (version 2), you can now download and print documents yourself.

          Do you really need a hardcopy from SSM office? I think it really depends on what you need the documents for. If there is a requirement for “certified true copy”, I think you’ll need the hardcopy from SSM. But if for example, you’re applying for a bank account and the bank only needs a normal (non-certified) copy — what you have should be sufficient.

          Hope this helps, and if any other readers have comments — I’d love to hear them!

  • Really helpful info sharing, thanks to this post I now feel more informed and planing to DIY my application for LLP.
    I’ve got questions about partnership agreement hope you can help.

    I should have the agreement ready & stamped by LHDN, before go to SSM apply LLP? Agreement is not compulsory but having one will provide some tax refundable benefit? Pls share a little more here.

    Would a general partnership agreement suffice or I need a special Limited Liability Partnership agreement?

    Must I really consult a lawyer to prepare an agreement? Because I found templates online and it seems straightforward enough to use. LHDN / SSM couldn’t care less about the content of the partnership agreement isn’t it?

    • Hello Jacqueline,

      Thanks for your kind words.

      You don’t need an agreement to start an LLP. Depending on your situation and how you word your agreement — there could be tax optimization between your LLP and your personal income tax. I have not heard of agreements being stamped by LHDN before however, and I don’t think it’s necessary.

      With regards to the partnership agreement required — I think it depends on you and your partners. How “black & white” does your agreement need to be between all of you? If you’re like me and (for better or for worse) trust your partners 100%, then maybe a DIY agreement is good enough. If not, then maybe it’s time to give the lawyers a call…

  • Hi Mr-Stingy,

    First off, thanks for the information on how to set up an LLP.

    As you mentioned above that we can register an LLP using our home address however is it the same case for opening up a bank account for LLP? I had this thought that it has to be a commercial premise/address.

    • Hi Jalie,

      You’re welcome.

      I can’t say for sure, because it might depend on the specific bank’s policies. But I do know of at least one person who has opened a bank account for LLP using home address.

  • Hi, MR-STINGY

    Good day to you.

    why LLP Website(new version) cant reserve the name now(there isnt reserve click) ? or we need to go ssm there to resgister now?

    TQ

    • Hello Aaron,

      Good day. I’m not sure about why reserve name doesn’t work now — but it’s really not a necessary step. You can go ahead and register your LLP directly without reserving the name.

  • Hi Mr-Stingy,

    Thanks for the informative post.

    Will LLP face any difficulty in applying grant/loan from authorities/banks, as opposed to Sdn Bhd?

    Appreciate your advice.

    Thanks.

    • Hello BC,

      You’re welcome. From personal experience, a lot of people still don’t know about LLPs yet — so you might face some difficulty. Example: I wanted to buy a car using my LLP and had some trouble from JPJ doing it. 🙂

  • Mr-Sting
    Good day to you

    My question.. we are a LLP registered entity. LLP partners withdraw a salary and bonus. These are personal income which is subjected to incometax. So if LLP distribute profit to partners, is this subject to personal income tax? And LLP profit in the balance sheet thus reduces, what is the impact of this?

    Thanks for your reply.

    Best regards

    • Hello Prompt,

      Profits distributed to LLP partners are not subject to personal income tax. This is because the income has already been taxed at “LLP level.” The way I look at is is the LLP is already paying income tax — so the partners don’t need to pay personal income tax anymore.

  • hi bro,

    may i have the contact no of the lawyer,or sample agreement of LLP?

    it’s for startup.

    and can other company (sdn bhd) be a partner (take equity) out of 100% from my PLT?

    and lastly, in business card..do i need to put ALI PLT or can I put ALI LLP?

    thanks!

    • Hello Ali,

      Have just emailed you my lawyer friend’s contact.

      Other companies can be partners in your PLT, but you will have to agree on how to share the profits/losses via the agreements.

      I don’t think there are any rules governing what you can put on your business card. But for all official correspondence with the government, your business is called ALI PLT.

  • Hi Mr Stingy,
    Would like to ask, does LLP have the same share-holdings ruling as S/B?
    For example, let’s say currently our LLP has 2 partners with 30-70 shares. But there are potential investors who are interested to inject money into our LLP for a certain percentage of shares. Does LLP work the same as how S/B would, in this scenario?

    • Hello Hui Hui,

      To my understanding, LLP share issues are fully up to the partnership agreement done between partners. So your percentage of shares issues needs to be clearly agreed on and stated in the partnership agreement.

      • You are saying that, the initial arrangement of the 30-70 shares since the inception of LLP can then be amended accordingly, say 15-30-55, when new funding were to be injected into the LLP?

        • Yup — that is my understanding. And I believe if all the partners agree, the “shares” don’t necessarily need to reflect the capital put in.

          E.g. Aaron puts in 50K capital, and Hui Hui puts in 50K. But if I somehow manage to convince you to take less “ownership”, the agreement can be written that Aaron gets 75% of profits, and Hui Hui only 25%. It all depends on what the partners agree on.

          (Someone please correct me if I’m wrong).

  • I’m an LLP registered company. I’m encountering an issue while I opening a bank account under LLP name. Unfortunately, the bank account under LLP could not have online banking account due the the banking system not up to date because of the company no. (LLP-XXXXXX). First I wasn’t thinking so much but to open the account. After a while i thought of those inconvenient going to be caused by the downfall. Where you have to call the bank each time to ensure the payment has been transferred / banked into your account. You also can’t check the account balance time to time with just a click. Imagine the trouble you going to go thru. I’m wondering why this issue wasn’t brought up during the registration in SSM. It seems to me that both of the entities are totally disconnected. The SSM just focusing on selling their product without knowing the detail on the bank opening. Also I’m wondering if anyone facing the same problem as I or online banking really doesn’t matter to them.

    • Hello Zheng,

      Sorry to hear about your troubles with the bank. Could I know which bank you’re using… Maybank perhaps? You could potentially switch to another bank, like Public Bank — which I hear has online banking for LLPs.

  • Thanks for your excellent and very useful sharing on LLP. What is the minimum capital contribution for the LLP by the partners? Is it the same as for companies , minimum RM 2? What impact has the capital contribution on the LLP. Thanks again.

    • Thanks Nair,

      I don’t think there is a minimum capital contribution for the LLP by its partners. Technically speaking, you could start an LLP with 0 capital. Practically speaking, a different story of course.

      The only impact I can think about capital contribution is this: “…LLP with capital contribution of RM2.5 million or less will enjoy a preferential tax rate of 20% on the first RM 500,000 of its chargeable income.”

      If capital is less than RM 2.5 million, you get better tax rates. This is to help the SMEs in the country I believe.

  • Hi Mr. Stingy, thanks for your post and i found it really useful.
    I have a question, if currently I have a full time job in one trading company, can i register LLP under my own name?
    (1) Will it be a conflict when it comes to income tax declaration
    (2)Is it possible for my employer to find out that i have own a company
    (3) Is this against the Employment Act?

    Looking forward for your reply!

    • Hello Janice,

      Thanks for dropping by. To answer your questions:
      Firstly yes, you can register LLP under your own name (but you will still need partners).
      1. When declaring income tax, you should declare income tax as an individual that does business (there is a different form for that).
      2. Technically speaking, if your employer knows the name of your LLP, they can go to SSM to buy your company profile — then they’ll be able to see your name registered with the LLP. However this is a lot of work, and unless your boss is specifically trying to get you — I don’t see why they would do this.
      3. There are no laws against people having a full-time job and a business on the side. However this may be against company policy. You probably need to check with your company HR.

      Practically speaking though, a lot of people have businesses on the side. If you’re interested, why not give it a try?

  • Thanks for the great post and response to comments. I do have a question I haven’t been able to answer from searching the web;

    Are government workers i.e. civil servants allowed to be partners in an LLP?

    • Hello Bruce,

      From the registrar of companies perspective, any Malaysian can be a partner in an LLP. They don’t ask if you’re a government worker / civil servant or not when registering.

      As to whether the Malaysian government allows their staff to be partners in companies — I don’t know. You might need to check with your boss. But I have a feeling that A LOT of civil servants are involved in businesses of their own 🙂

  • Hi Mr. Stingy !
    Awesome post on the LLP !!! Quick question; can a Sdn. Bhd. be a partner with an individual for the LLP ?

  • Hi Mr-Stingy,
    Good blog and yes the LLP website has been changed, but the idea is the same.

    I am planning to use this company as a vehicle to purchase property, rental, leasing activities and such as an alternative to IHC. However, I am curious if I apply loan in bank, do they consider each partner’s salary PLUS the LLP company monthly income (similar like IHC)? I am a newbie in this setting company etc.

    At the moment, we cant register property under LLP so I have to wait for the land office to sort out these matters. If anyone got any update, please let us know

    • Hi Dean,

      Thanks for the word of support. Regarding bank loans, you would have to check with the banks — as this would be their decision.
      Very interested to hear about registering property under LLP too. In theory it should be able to be done — but I guess the land office hasn’t caught up yet. Hope someone does it soon and shares with us!

    • Hi Dean / Mr Stingy,

      Do you have a LLP agreement specific to the LLP being a vehicle to purchase property, rental etc?

      • Hi Ching,

        Unfortunately I don’t have an LLP agreement format for that. You might need to check with a lawyer to help you draft it? Thanks.

  • hi mr Stingy, would like to ask, once i done my registration, approved, can i change my nature of business later?

    if yes, any charger or approval required?

    • Hi Robin,

      I think it’s possible. You will need to pay RM 30 to register your change in particulars with SSM.

  • Hi Mr-Stingy,

    I’m just wondering if I have to draft the LLP agreement prior or after the registration with the LLP portal? Also, any recommendations for professional and reliable lawyers at west malaysia, preferably perak, kl or penang area? Thank you.

    • Hello Meow Meow,

      Nope you don’t need to draft the LLP agreement prior to registration, but if you already have an agreement in place, you can state that during registration. For a KL-based lawyer, I’ll email you my friend’s contact.

  • Hi sir. Just across your blog with so much useful information. I hope you can help me on this. I plan to setup a LLP company with a partner in trading business, can I register for GST? Seems like I can’t find any information about LLP and GST related FAQ. Many thanks.

    • Hi Calvin,

      Thanks for being kind. An LLP should be able to register for GST, no problem. I can email you a (paid) GST advisor’s contact if you want?

  • Hi,

    May i know which company help to set up LLP ? Can i get their contact ? Possible in Penang island pls & estimated how much they charge ?

    Thank you very much in advance.

  • Hi Sir,

    I’m registering the myLLP and getting the LLP name at “check LLP name availability”…but it don’t have the “reserve now” button. Any advice to get it done register the LLP name?

    Thanks in advance

    • Hi Mr. Lycan,

      I would skip the “reserve name” step. It can save you RM 30. Instead, just go ahead and register directly (Step 6 in the article above).

  • Hi Mr.stingy,

    I registered the MyLLP website and i search the name….but i can’t get the “reserve now” button.
    Please help…

    • Hi wong,

      I would skip the “reserve name” step. It can save you RM 30. Instead, just go ahead and register directly (Step 6 in the article above).

  • Hi, May i know how can i get the LLP PT income tax number? Is it still need to go to the IRB to register company and then just get the number from them? Please advice, Thank you very much.

    • Hello Lex,

      I’ve not gotten that far yet (doing the LLP income tax), but it sounds like yes, you do need to go to the IRB.

  • Hi Mr Stingy,

    Many thanks for your article.
    I have a few questions that I would like to ask you about the LLP.
    Can a foreigner apply for LLP business?
    Is there any minimum headcount of individual for apply a LLP?

    Thanks!

    • Hello Karmen,

      Yes a foreigner can apply for LLP business, but needs to either have a local partner, or appoint a local compliance officer.
      The minimum number of individuals is 2.

      • Hello Mr-Stingy,

        Could you please explain, what does it mean local partner?
        Could it be e.g. local service company?

  • Hi Mr. Stingy,

    I would like to seek for your help on certain issue.

    The below is the documents which needed to open a bank account for LLP.
    1. Certified true copies of NRIC/Passport of all partners and compliance officers
    2. Original NRIC/Passport of all partners and compliance officers (the bank officers need to see the originals, so you have to drag your partners to the bank with you)
    3. Certified true copy of LLP corporate profile
    4. Certificate of registration of LLP
    5. Certified extract of resolution for LLP (certified by compliance officer and one partner. This is the document that says all the partners agree to open a bank account)

    Which parties am I suppose to let them certify?

    Thanks.

    • Hi Riche,

      The best person to ask would be the bank themselves. Different banks may have different requirements…

  • Hi Mr Stingy,
    i would like to clarify something some what my business partner just told me that LLP is like SDN BHD ,
    what i wanted to know is it require to pay fees of director , secretary and so on?
    Because I’m currently pounding over general partnership and LLP, and i do know the general differences of both of this business model like the separate legal entity and the minimum number of partners.
    Hope you care to answer my message. Thanks!

    • Hi Apseven,

      A director in a Sdn. Bhd. is sort of equivalent to a partner in an LLP. I believe for a Sdn. Bhd. — the director’s fees depend on whether the company/directors want it to be paid or not. Same goes for an LLP. If all the partners want to work for free, there’s no law against that.

      When it comes to a secretary — a Sdn. Bhd. needs to (usually) hire a company that provides secretarial services. This is for the tedious admin stuff you need to do for a Sdn. Bhd. An LLP has no requirement for a registered secretary. You only need a Compliance Officer to do the filing and declaration.

      In other words — it’s much cheaper to maintain an LLP.

  • Hi Stingy,

    Can I have a copy of the sample LLP agreement? I would like to do one and stamp myself but i had no idea of how the agreement should look like. Pls give me a sample copy. Thanks

    • Hello Adrian,

      I’ve not done one myself, but I’m sure you’d be able to find some samples through Google. If you really want to do a proper one however, might be wise to consult a lawyer friend?

  • Hi Mr-Stingy,
    Thanks for the detailed information. I stumbled on your website during google search for LLP.

    I am just wondering if the partners need to reside in Malaysia or can be non resident? I am thinking to register for LLP for me and my husband because we wanted to open a small business but we are still residing outside Malaysia until maybe next year.

    Thanks.

    • Hello Zai,

      Thanks for dropping by. As for your question, you either…
      1. need one Malaysian resident to be a partner and the compliance officer OR
      2. appoint a qualified secretary (who is a Malaysian citizen, PR or normally resides in Malaysia) to be the compliance officer

      Hope this helps!

  • Hi there,

    Wish I’ve stumbled your article earlier. It is very informative!! I registered my LLP last year. Unfortunately, things have not gone according to plan. The business couldn’t kickstart. In fact, we didn’t start the business at all. I am thinking if I should wind down the company but I don’t know how, whom to seek opinion or how much would it costs. Would be great if you could share some information to that, if you could? Is it cheaper to wind it down or just maintain it every year? It would be awesome if you could come up with a similar article on how to file for the annual declaration. I asked and called SSM office countless times and each time they put me through different person who speaks different things. I’ve no absolute proper view on how to do it. Lastly, since we have not start a thing in this company, do we still need to do tax declaration? Sorry for the many questions asked as I’m really clueless about this with no proper guidance. Thanks for your help!

    • Hi AIl

      Sorry for the late reply. I had to do some reading before I could answer your questions. Here is my opinion:
      1. It’s cheaper to wind down the LLP. Annual declaration per year is RM 200.
      2. To be absolutely safe, you should do tax declaration even if there’s no profit/loss/revenue. (plus side is — it’ll be really easy to do).

      Sorry to hear the business didn’t go well, but wish you the best ahead!

  • Hi, just want to say thanks for a detailed post. It really helps since I’m a first timer. If not because of your post, I would probably have paid RM2400 to some accounting firm that claims to help register LLP the “professional way”. Well, their firm came up after I googled search “LLP Malaysia”. So, once again, I just want to say thanks. 🙂

  • Initially i would like to register my llp on 1st feb. However, the admin requires me to make some amendments which has to resubmit using same ref no. My question is, whether the official registration date following the date of resubmission or the date of my initial filing?

    • Hi Hm,

      I’m not 100% sure. If you asked me to guess — it would follow the date of your initial payment. But do let us know what happens when you get it approved? Thanks!

  • I noticed there is one RM30 fee for changing particular. How does it work? Does it apply for every single particular (RM30 per particular) or one time fee (can change more than 1 particular)?

    • Hi Dorothy,

      I’ve not done it so I’m not 100% sure, but it sounds like RM 30 for changing as many particulars as you like…

    • Hi Peggy,

      Unfortunately you will need at least one partner. The good news is you can choose anyone to be your partner: like your mom or your dad.

      • Hi Mr-Stingy,

        Thank you for sharing your knowledge. Most appreciated.

        You said…”you can choose anyone to be your partner: like your mom or your dad.” … what would be the implication for “mom” or “dad”? Especially in relation to income tax.

        • Hi May,

          It depends on how much the LLP pays “mom” or “dad.” Any salary they get paid is considered as taxable income.

          • Hi Mr-Stingy,

            Thanks for your reply. Is the below understanding correct?

            1. In the LLP, “mom” or “dad” being the 2nd partner has a certain % of the partnership and also draws a salary.
            2. The % of the partnership can be just 5% (i.e. I have 95% of it)
            3. The income tax payable by the 2nd partner will be the salary and also 5% of the profit, if there is any.

          • Hi May,

            This is my understanding:

            1. “Mom” or “dad have a certain % of the partnership. Whether they draw a salary or not depends on agreement between the partners.
            2. The % of partnership can be whatever you and your partners decide it to be.
            3. The 2nd partner needs to pay income tax on salary received (hint: if they don’t receive a salary, they don’t need to pay tax on it). Profits distributed to partners are not taxable. How much profit is distributed to partners is subject to agreement between the partners. You could also decide to not distribute profits to the partners, and just let the LLP keep the profits.

          • Hi Mr-Stingy, thank you for your generosity of time and knowledge.

    • Hello Bernard,

      Thanks!

      I think non-Malaysians can be partners, but you either:
      1. need one Malaysian resident to be a partner and the compliance officer OR
      2. appoint a qualified secretary (who is a Malaysian citizen, PR or normally resides in Malaysia) to be the compliance officer

  • Hi Mr Stingy, me and my partners would like to start a Sdn Bhd but due to the cost until we came across this post by you.

    1. Can LLP convert into Sdn Bhd in future?
    2. The salary agreement, can we put it in percentage? Let say A grt 40% of the nett profit, 30% each for B and C.

    • Hello Henry,

      1. I don’t think an LLP can convert into a Sdn. Bhd. If you want to do that, you have to dissolve the LLP, and then start a new Sdn. Bhd.
      2. I think you can do that for the agreement. I’ve not come across any hard and fast rules on the salary agreement.

  • hello.
    in order to open business account bank, its required business documents.
    which one should i buy?
    1. LLP current and historical profile
    or
    2. LLP current profile.

    i just started up my business so yeah if you could help me, by giving me advice on what should i do next after registering my LLP . Thank you very much

    • Hello Nadzmi,

      Different banks may require different documents, and have different procedures. I suggest you visit your preferred bank, and then ask them exactly what the process is? That should be the quickest way of doing it.

  • Hi Mr. Stingy,

    I would like to ask what were the documents that you produced to JPJ when you purchased a car for you LLP.

    I’ve managed the get my LLP registered and had the bank account opened but when it comes to purchasing a vehicle, I’m stuck at the documentation as the JPJ in my state requires that all the documents be certified true copy.

    The LLP documents (certificate of incorporation and current profile) are the only things that we can obtain from SSM and they told me that they can only certify the documents for the current profile and are unable to certify the certificate of incorporation. I even went to to the extent of getting a statutory declaration for the LLP documents since SSM said they cannot certify it, but still JPJ would not accept it.

    Really appreciate it if you could share how you got yours done. Thank you very much!

    • Hi Sik Soon,

      I went through similar troubles at JPJ. They could accept the certified true copy for Current Profile, but not the certificate of incorporation. So I ended up giving them the original certificate of incorporation.

      It’s difficult because they don’t have a standard operating procedure for LLPs yet. You’ll just have to ask to speak to their superior, and ask for their kind graces to approve it. And you can let them know that it’s been done before at JPJ, Petaling Jaya branch.

      Hope it goes through!

    • Hi Kee,

      Unfortunately the partnership agreement is not provided by SSM. You either have to draft it yourself or perhaps get a lawyer to help.

  • Hi there,

    You did not mention the agreement among the partners. Does SSM require this?

    Also, do we actually need a lawyer or we can do one ourselves?

    Thanks!

    • Hi Alex,

      Thanks for dropping by. SSM does not require you to show the partnership agreement when you’re setting up the LLP. Actually, if you don’t do a partnership agreement, I believe there’s a set of “default” rules that apply to you and your partners.

      If you’re interested to do an agreement — you could either draft one yourself or get a lawyer to help. Personally, I’d do it myself, but that’s just me — I like to DIY 🙂

      • Also, after the formation of the LLP, are the compliance procedures tedious and long-winded?

        Necessary to find secretarial firm to do?

        If so, which secretarial firms do you recommend?

          • Hi,

            I heard that to lodge my partnership agreement with SSM for the first time need to pay RM300. Is that true? I can’t seem to find evidence though.

          • Hi,

            How do you do your accounting? Is there any format that we must follow? Or as long as we could provide sufficient accounting in excel and documents proof thats fine?

          • Personally I use a free accounting software called Wave: https://www.waveapps.com/

            But yes, in principle — as long as the accounts are done according to accounting principles, it should be enough. I think excel would be more than enough.

          • Hi, since LLP needs to set up bank account, I think getting a secretary as compliance officer is as must?

          • Alex, nope — getting a secretary as a compliance officer is not a must. You can appoint any other partner as a compliance officer.

      • Hi there, you have mentioned about partnership agreement. Can you please forward the contact for the agreement – would also like to know how much it will cost for such agreement, do you have any idea?

  • Hi Buddy

    I would like to know did I need to submit to IRB for taxation & the annual declaration to SSM when the return dateline is up but haven’t start the business after the LLP registration?

    Thanks for your precious feedback…

    • Hey AC,

      I haven’t done mine yet (less than one year for me too), but I suggest you still submit the tax return form to IRB and annual declaration to SSM. Since you haven’t started the business yet, the filing should be very easy — and this will ensure you are 100% compliant to the rules. All the best!

  • Hi,I have a foreigner friend who like to open an business in Malaysia but SSM required her to cooperate with Company Secretary who act as partner and involve in Limited liability Partnership(LLP).May i know the list of Co Sec who offer and involve in LLP?Thankss.

    • Hi June,

      I think the person at SSM may have misinformed her. If you look at the LLP Act, and SSM’s website, it says that:
      “The compliance officer has to be either from amongst the partners of the LLP or a person qualified to act as a secretary under the Companies Act 1965 who :-
      (a) is a citizen or permanent resident of Malaysia; and
      (b) ordinarily resides in Malaysia.”

      So, I believe you don’t need a qualified Company Secretary to be her partner. Any other partner in the LLP who is a Malaysian resident can do that.

      (See Item number 19 in link below):
      http://www.ssm.com.my/en/faq-view?field_cat_faq_value=Limited_Liability_Partnership

      • Hi,

        Thanks for your reply.Yes they dis tell us than there are 2 way to register the business license.First is to get a resident of Malaysia and second is get a Co Sec who act as our partner.Thus,we chose the second option.Do SSM have other alternative way other than get a citizen or permanent resident to become as a partner?

        • Hi June,

          Unfortunately I think those are the only two options. Not sure about your current situation, but I think getting a local partner in the LLP is the easier/cheaper way to do it. Anyway, let me try asking SSM if they have a list of approved company secretaries too. From my search online — I don’t think such a list exists yet!

    • Hi Ariff,

      Do you mean the certificate of good standing? I guess it depends on what you want to do with your LLP. Haven’t heard of anyone asking for this certificate yet. (From what I know, even banks don’t ask for this when you want to open a bank account).

  • Hi Sir,
    I am interested to register on LLP as i am having 4 partners to setup this company. There is some inquiries and hope you can enlighten me on this.
    1) As i saw on the comment, we need an agreement for remuneration/salary partners first right? Do we need stamp duty for it?
    2) I had created an ID in MyLLP but i had limited access for everything, i can’t even reserve the comp name etc… (Basically is just login and see only)

    Really need your advice on this.
    Warmest Regard

    • Hi Kenn,

      Thanks for writing in.

      1. Yes, you need an agreement for remuneration/partners’ salary IF you want this to be tax-deductible for your LLP. I believe you need a stamp duty for the agreement.
      2. Some of my other readers faced the same issue. Did you register as a “general user” or “verified user”? Fakzhan and Gina very kindly explained the below:
      “Users need to register as Verified User instead of General User in order to use functions like Reserve Name and Register LLP.”

      Hope this helps!

  • Hello sir,
    It is possible to change my business code after i finish the registeration?

  • Hi, anyone here has sample llp agreement which is tailor to suit malaysia to share ?
    I been searching around but found nothing for malaysia one.

    • Hi Goh,

      I don’t have one of my own. But hopefully one of my other helpful readers can share. If you like, I can introduce you to some lawyers who could help…

  • Hello sir,
    I would like to ask a question.
    I already register my LLP and paid RM500 but there is no respond or any email I get from SSM.
    I already waited for one week but still no respond, is this normal? How long usually register period take place?

    Thank you 🙂

    • Hey Muhd Ariff,

      No that is not normal at all. It should happen almost instantly. Can you call them and find out what happened?

      • Hi Mr. Stingy and Muhd Ariff,

        Thank you Mr. Stingy for the post which is very helpful.

        I’ve experienced the same problem (registration stuck at submitted though they’ve already charged my credit card for RM500) as you and the officer at the office told me they can’t do anything about it and asked me to call the call centre.

        I called the call centre and the staff seems blur as well. When I ask them would they be able to check on my status if I give them my submission reference number, the person on the line just told me there’s nothing they can do and ask me to wait for another 3 working days and told me to call back if there’s still confirmation.

        I wasn’t happy and asked who else I can check this matter with and they gave me the number of another officer but I’ve called several times and no one answers the phone.

        Quite frustrating to have experienced this kind of service when their customer charter states that registration can be done within a day.

        Btw, I submitted my registration and paid on 21/12/2015 morning.

        • Thanks SikSoon for your very helpful and informative comment.

          I really hope that your registration gets completed soon. And that SSM will improve their system/service!

  • Thanks for your sharing, Mr-Stingy.I had learn a lot from this.
    As i refer about the tax declaration from the http://www.hasil.gov.my/pdf/pdfborang/Form_PT2015_2.pdf ,
    I saw the last part of the Form -PART H (PARTICULARS OF
    THE FIRM AND SIGNATURE OF THE PERSON
    WHO COMPLETES THIS RETURN FORM )
    So does it compulsory need a approve tax agent to done the tax filling every year?Or we can do it by self ?

    • Hi Jordan,

      You’re very welcome. I believe tax declaration form can be done by yourself without involving a tax agent.

  • Hi sir. I have successfully converted a private limited company to llp in September. However I am facing some problems in transferring the non movable properties from Sdn. Bhd. to llp. Do you have any ideas how to go about with it as the land office seems do not know what they should do. Any stamp duty incurred from the said transfer and since the Sdn. Bhd. is no longer in existence how to do the said transfer?

    • Hi Tcp,

      Unfortunately I don’t know too much detail about land transfer. I find that a lot of government agencies have no idea what an LLP is — so I think it will need a lot of persistence (and maybe multiple visits) to resolve…

  • Hi Mr. Stingy,

    Thank you for your essential guidelines here. It would be definitely very helpful for those needed.
    With the recent new myLLP update web, I would to update you that,
    1. We can register direct without booking, so to save RM30.
    2. Buy certificate of registration has not longer done it via counter(starting 1 Dec 2015). Buy it at myLLP with cost only RM20 + gst RM1.20 = RM 21.20. This would save another RM36.50 and also TIME!!

    Best regards,
    tee

      • Missed the direct booking part and couldn’t save RM30 and the waiting period. However, would like to check if the certificate of registration must be collected from SSM office? Can we send representative? My LLP is registred and is in East Malaysia la, hello SSM!

        • Hi SL,

          I can’t 100% remember — but if I recall properly, a representative can do the collection. Better to give them a call to check though? (p.s. if you could let us know once you’ve done it, I’d really appreciate it!)

  • Just sent u a message in FB regarding to the latest update of LLP company document. Thank you.

  • Hi,

    Registered LLP last December. The process was similar to what you have described. To me, the process was unfriendly.

    Opening an bank account was complicated and took a month to get everything done with assistance from very helpful bank officer.

    I registered LLP without an partnership agreement. If I am not mistaken, there is a requirement to have agreement including remuneration/salary to partners. If not, salary paid to partners would not be acceptable by Inland Revenue Board. All these statutory requirement look too time consuming.

    I have not started business with this LLP. I would like seek advice from or any the following:
    11. any annual fee payable ?
    2. anyone provide services ( meeting statutory requirements) for a fee? All the company secretaries I spoken with were not willing to provide these services. They claimed that LLP is new and penalty for error is huge.

    I may either wind it up or transfer to anyone free of charge. I think transfer is change of partners and compliance officers to new persons.
    Thanks
    Hng

    • Hi Hng,

      Thanks for taking the time to comment. My thoughts:

      1. Yes — if you do not have a partnership agreement in place, remuneration/salary to partners is not tax-deductible. So that needs to be done.
      2. There is an “annual” fee payable. It is the RM 200 you pay for the annual declaration.
      3. I’ve come across one website where they provide services for LLPs. It’s this one: https://www.3ecpa.com.my/services/start-a-llp/limited-liability-partnership-setup/
      The way I view it though: LLPs were designed to not have so many regulations as a normal Sdn. Bhd., so perhaps DIY is the to go.

      • I am not familiar with the annual declaration to SSM and RM200 payable. I cannot access the link provided.

        Can you enlighten further?

        Thanks

        • Hi Tan,

          I think SSM has recently removed the old link to the annual declaration form. If you Google it, you can still find it though. It’s a very simple form where you need to declare if you can/cannot pay your debts, and provide some financial information.

          Perhaps when I do mine, I’ll do a write-up on it and share it here.

  • I’m going to register LLP this coming December. About the fee, I searched through SSM official website only mentioned about RM500 and then nothing more. Your write up is helpful, now I know RM577.5 or RM547.5 (without booking company name). I’m curious about RM200 annual declaration, is it also pay to SSM? I though RM577.5 or RM547.5 shall be lifetime. SSM never mention RM200 and I further worry there is any hidden cost.

    • Hi Ong,

      Yes the annual declaration is paid to SSM and is RM 200 per year. To my knowledge, that is the only cost to renew an LLP every year.

  • Hi Mr. Stingy, i wish that i have discovered your post earlier. Yea, they made me running up & down like a headless chicken to get things done. Now i have another thing to check with you:
    1. How to go about with tax declaration? Do i have to visit my friend/s in SSM again? Any website that i can refer to? Thanks!

  • I like your comical way of writing. Good on you. Reading the comments from your “fan club”, I conclude that when someone starts a system, it is perfect. Then when some smart a$% tries to improve it based on feedback, he F&*#$ the whole system. I am of the opinion that SSM should have a HELP DESK and COUNTER SERVICE for those like me who don’t know A from B. Give them a prod, will you!!

  • Is this application work for internet cafe ?

    Base on forum it is very hard to get the internet cafe license, is it true ?

    The register person must have very strong background then only can apply successful for the internet cafe?

    • Hi Hiew,

      To register for an LLP is really easy. To get an Internet cafe license is a totally different thing I believe. Unfortunately I don’t know anything about getting an Internet cafe license, but I wish you the best!

  • Mr-Stingy, SSm has “upgraded” the system to MyLLP 2.0. Though, for the better or for the worse, I can’t decide. There is now different type of users, for.eg General User, Verified User, etc..

    The workflow will be different depending on what type of user you are. I have been trying to register my LLP, but to no avail. The officer in charge also don’t know what to do. “Sistem baru, yang biasa saya buat tak keluar”…

    So, yes. Good intention, very poor implementation.

    And no, they still don’t have the flowchart…

    • Thanks for dropping by Fakhzan. About MyLLP 2.0, Ouch… that sucks. I was hoping that would solve the previous issues. Hoping it gets better soon!

      • Hamaigerrrdddd you’re so lucky to have used the previous version.. It seems that in the “version 2.0”, step 1 failed altogether. Other than the email to verify my registration details, I didn’t get any other emails that leads me to the next steps. Honestly, it is frustrating because I cannot do anything else from there.

        But your guide was good tho. I guess I could pay a visit to SSM office (they’re 5 minutes drive from my own office) and ask. I would have anything to reference my registration tho.

        Wish me luck! ^_^

        • Thanks Khairool for writing in,

          I didn’t realize so many people are having problems with MyLLP 2.0. Could you update us once you’ve managed to get things done? It would be really helpful for me and everyone else I think!

    • The My LLP 2.0 is really giving me a hard time. Cannot reserve name, the first thing I need to do after the name check. I feel extremely frustrated because my schedule is constantly tight and almost impossible to physically attend to CCM office. I was really hoping things can easily be done online. Long sigh …

        • I have managed to sort it out. Users need to register as Verified User instead of General User in order to use functions like Reserve Name and Register LLP. Only Compliance Officer can register as Verified User can use the functions as a Compliance Officer is authorised to sign off declarations.

          After a successful registration, you will receive a confirmation email and instruction to confirm and verify your account at the nearest CCM office, within 14 days. Almost immediately upon verification, the Verified User account is activated and all the necessary functions can be accessed. Approval of Reserve Name was very quick for me ie approved the next day. Reserving LLP name and thereafter registration can all be done online as the forms are all to be submitted through My LLP 2.0. Payment was processed swiftly and responses from CCM was very quick.

          • If you have registered as General User, then you open another account as Verified User (you need this if you want to register LLP, since General User can only search info on on existing LLP but not apply or submit or register anything), you would face trouble when you want to register LLP.

            More specifically, when you reach the stage of adding partners.

            In the system, you will have 2 accounts using the same NRIC number. The first as General User and the second as Verified User.

            Now, the Compliance Officer will automatically be you as Verified User. When you want to add yourself as partner, the system might automatically pull out you as General User.

            When you want to submit, the dreaded error “This individual must be appointed as Partner before being added as Compliance Officer” would appear.

          • Thanks Fakhzan and Gina,

            I’ve not gone so deep into the LLP system myself, but your comments will definitely help others who are new to this. Please keep the additional info coming and thank you so much!

  • Greetings, thankfull effort
    I am from egypt and plan to move next month to launch my own company, so is that procedures suitable in my case, and is that document (my LLP) faciliate me to get the Dp 10 , if yes , how to apply and getting.
    Thanks my friend

  • Hi,

    I’ve gone through the myLLP online web portal to create two LLPs, one recently and the other in Nov 2014. I didn’t really need to go through the Name Reservation process thus saving me from paying RM30 and waiting 3 working days. I went straight to “LLP Registration > General Registration” in the menu skipping Name Reservation altogether. Here, I just type in the name of the company that I would like to register in “Proposed Name” text box. If the name is available, there’ll be a “Proceed” button. Going through this process automatically reserves the LLP Name and immediately registers it at the same time.

    • Hi Marcus,

      In sole proprietorships, tax of the sole proprietorship and tax of the individual are calculated together. So your sole proprietorship is an extension of your personal tax, and you use the same tax rates as an individual.

      In a private limited company, the company is taxed separately from the individual. You can find out more about the tax rates (and general Malaysian tax) here: http://www.pwc.com/my/en/assets/publications/2015-malaysian-tax-business-booklet.pdf

      An LLP in Malaysia is taxed like a private limited company. Separate tax for the LLP and the partners. This is a key difference from LLPs in countries like India and Singapore — where LLPs are taxed like normal partnerships, which is similar to sole proprietorship/personal tax.

      • Hey Aaron!

        Really appreciate the groundwork you’ve done in simplifying the whole LLP registration process for us folks out here and also following up with additional answers here.

        With regards to tax matters right, so the LLP pays tax the same way a corporate entity does, but do you still need to file a personal tax return on an individual basis for the income you get for your remuneration from the LLP?

        • Hi Nicole,

          Thanks for dropping by!

          With regards to tax matters: yes, you do need to file a personal tax return from what the LLP pays you (similar like a Sdn. Bhd. or Bhd. company). Note that “profits” distributed from the LLP are non-taxable (for the LLP partner). This is similar to a director of a Sdn. Bhd. not having to pay tax on dividends he receives from the company.

          Basically, if you’re in control of the LLP — it raises all kinds of interesting “tax optimization” scenarios 😉

  • Dear Sir, thanks for the useful information. May I kindly ask what docs you will need to prepare for applying bank account for LLP? Coz I found that most banks are still kinda ‘blur’ with LLP and I am currently having difficulty in applying that. Could you kindly advice? TQ!

    • Hey Soo,

      I feel your pain. But the only documents you can really get from SSM are the LLP certificate and business information (a total of RM 47.70). I think you’ll just need to tough it out and speak to higher level executives if possible. I haven’t done it myself, but this is based on my experience at JPJ. When you do manage to do it, I would love to hear your experience though. All the best!

      • I opened an LLP bank account with RHB Bank. The documents they require is reasonable and processing was smooth. They do require the LLP agreement so you have to get that done.

  • Hey mr-stingy, would like to ask you some questions regarding SSM.

    So yesterday I went to SSM to register a company which is under Trading
    similarity with enterprise I think. Then later at night I stumble upon your post
    which is registering a company under LLP which I never knew its existence, so
    I would like to ask is it possible for me to convert it to LLP and pay the extra cash
    or do I have to register again under LLP and let the first one burn? Thanks in advance.

    • Hey David,

      Is your initial company a sole-proprietorship (you paid either RM 30 or RM 60) to start it?

      The LLP booklet says that a conventional partnership or private company can apply to convert to an LLP. But they still need to pay the RM 500 registration fee though. I guess that means your initial payment will be burned…

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