Useful guide to
Limited Liability Partnership (LLP)
Start up in Malaysia

Introduction

If you have been thinking of starting your own small business, it is a much better time now compared to the past. Thanks to the advancement in technology, starting and running a business today requires less capital.

You may have asked yourself one time too many "But where do I start?" While it is tempting to dive straight into it and start marketing your services/products, getting a bunch of customers and giving birth to revenue, there are a few foundations that you need to lay down to avoid running into problems later on.

The very first thing is to get your business registered. In Malaysia, start-ups usually look at these 4 choices of business entities to choose from.

  • Sole Proprietor
  • Partnership
  • Limited Liability Partnership (LLP)
  • Limited Company (Sdn. Bhd. or Sendirian Berhad)

Download the comparison table.

Useful article: What Do You Need to Start A Business?

What Are The Advantages Of LLP Over The Other Options?

Limited Liability Partnership

  1. No Limit To Number Of Partners
    • Limited Liability Partnership (LLP) offers no limit on the number of partners that can be registered with the business.
  2. Limited Liability For Partners
    • LLP provides protection of limited liability to its partners similar to the limited liability enjoyed by shareholders of a private limited company (Sdn Bhd). Any debts and obligations of the LLP will be borne by the assets of the LLP and not that of its partners. A LLP has the legal status of a body corporate which is capable of suing and being sued in its own name, holding assets and doing such other acts and things in its name as bodies corporate may lawfully do and suffer.
  3. Flexibility
    • LLP has flexibility of internal business regulation through partnership arrangement similar to a conventional partnership.
  4. Low Set Up And Maintenance Cost
    • LLP offers lower set up and maintenance costs compared to Limited Private Company. LLP does not require one to have a company secretary or prepare audited financial statements by an auditor.

Useful article: How to Set Up a Limited Liability Partnership in Malaysia?

Partnership Agreement Is Mandatory For LLP

It is a mandatory requirement by SSM that all LLP must have a partnership agreement. The partnership agreement:

  1. Offers flexibility to partners with regards to shareholding and voting rights
  2. Addresses potential discrepancies that may arise between partners i.e. decease of partners, termination of partners and etc.
  3. Caters to the full rights and obligations of its members.
  4. Influences manners of which important decisions of the partnership are to be made.
  5. Looks at the various members' investment in the partnership.
  6. Displays how the LLP is to be run.
  7. Details how property will be used and run by the LLP.
  8. Provides the “how and when” of the sharing of profits in LLP.



Useful article: About Limited Liabilities Partnership (LLP)

What is LLP Setup Assistance?

We understand that not everyone is fearless with government processes and filling up of forms online. With our assistance, you will have no fear as we are here to hold your hands to go through this somewhat simple yet tedious process.

First, we will assist you to register “MY LLP Account” in MyLLP Customer Portal by SSM. We will provide you a link to fill up “Setup MyLLP Account Application Form” online/offline. This form consists of mainly the personal detail of the Compliance Officer for the LLP that you intend to setup.

Once we have received your filled form, we will proceed with the SSM registration. When the registration is done, you will be required to proceed to the nearest SSM office personally to verify your identity.

Once the verification process is completed, we can then proceed to assist you to setup your new LLP via SSM’s online portal. With this, we will provide you another link to fill up the “LLP Setup Assistance” form online/offline. This form will require more business information such as the intended business name, your business nature and your partner’s detail. Together with the form, we will also need a colour softcopy of all the partners’ ID.

Lastly, you will be required to pay the LLP setup fee of RM500 to SSM to complete the LLP registration.

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Benefits of Having A Virtual Office As Your Business Address


  1. Prestigious Business Address
    • A prestigious business mailing address contributes to the brand’s name and leaves clients/potential clients with a great impression.
  2. Dedicated Local Landline Number
    • A dedicated local landline number helps your business acquire local customers much easier. It is also more personalized and trustworthy for local consumers compared to an unrecognizable area code. Additional phone numbers also conveniences your clients in contacting you – you can never go off radar
  3. Virtual Receptionist
    • A professional, virtual receptionist who answers your calls in your company’s name with the option to transfer the call directly to your personal number should you decide to answer the call. This will avoid any missed calls which could potentially be your million-dollar deal. It also gives an impression to the caller that you have a sizeable business and are not a one man show.
  4. Dedicated Facsimile Number
    • A dedicated facsimile number enables you to retrieve your faxes at any time via email as long as you have an internet connection. It is especially helpful if your client prefers to communicate via fax.
  5. Value For Money
    • Cost for paying rent, maintaining staff and equipment in a conventional office for a start-up will be a giant pill to swallow compared to costs of hiring services from a well-run Virtual Office provider. This is because the Virtual Office provider has better negotiation power with suppliers through leveraging on their clientele. You will only pay for the services that you use – rest assured.

Useful article: Benefits of Virtual Offices

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Can We Use Virtual Office Address For LLP SSM Registration?

SSM require your company financial reports and Annual Declaration to be available at the registered address. Hence, if you choose to use the Virtual Office address as your LLP registration address, you ought to have your financial reports and Annual Declaration available at the business centre where your Virtual Office address is located. Alternatively, you can outsource your company's bookkeeping to the Virtual Office service provider.

What is bookkeeping? It is literally about keeping your books in the right manner, but – it’s all about your company’s accounts. You may think it’s not necessary to have your accounts constantly checked but without keeping tabs on your cash flow (in and out), how would you know if your company is profiting or incurring losses? Start-ups should make full use of this service for they are exactly as their name suggests; freshly starting up with little to no experience in the industry.

Make the right move – take full advantage of outsourcing bookkeeping services to directly keep your costs at bare minimum and skyrocket those profits! Look no further because we offer fiercely competitive rates for our bookkeeping services which include data entry for all transactions related to accounting, bank reconciliation, preparation of accounts receivable and payable, generation of profit & loss and other financial statements along with preparation of accounts for auditing or annual declarations.

Useful article: Bookkeeping Service

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Other Aspects You Should Consider As A Start-Up

As you might already know, starting and running a business is never easy. After you have your business registered and in possession of a ready address, here are some of the other things you may want to look into:

  • Company Logo
  • Business Card Design and Printing
  • Website set up (domain name registration, contents crafting, web hosting)
  • Utilization of Google Adwords as a Sales and Marketing tool
  • Social Media Accounts Set up
  • Invoicing and Accounting Software / Services Set up (Looking for means of outsourcing to maintain a lean business with growing profits)
  • And many more ....

Here, we unfortunately can't cover each and every aforementioned topic in detail. If you are interested to know more, please feel free to contact us and we will be delighted to assist you further.

LLP Startup Packages


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If you are interested in our virtual office package without LLP, please visit http://www.businessbutlervirtualoffice.com

About Us

Business Butler Business Centre is a local Serviced Office, Virtual Office, Call Answering Service provider. Business Butler, established since 2010, strongly believes in the concept of crowdsourcing and resource sharing. Business Butler’s goal is to help as many micro sized small and medium business (SME) owners as possible to stay lean and efficient while making profit and maximizing their margin. “Business Butler takes care of you; you take care of your business!” is our tagline.

Business Butler is physically located at Solaris Dutamas, Kuala Lumpur, Malaysia. Solaris Dutamas is stone throw away from the Royal Palace and the Ministry of Trade (MATRADE), easily accessible from all directions with major highways that will only take less than 30 minutes from any corner of the Klang Valley. It is situated at a robust commercial square, between Kuala Lumpur city and Petaling Jaya, with neighbours including various well known multinational corporations from oil and gas, engineering, investment companies to trading house, legal firms and advertising agencies.

Contact Us

Business Butler Business Centre
B2-2-2, Solaris Dutamas,
No. 1, Jalan Dutamas 1,
50480 Kuala Lumpur.
Email: butler@bbvirtualoffice.com
Phone: +60 (3) 6205 3622
Fax: +60 (3) 6205 3623

We are opened on weekdays 8:30 AM – 5:30 PM

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