When we refer to legal entities available for registration, Malaysian legislation provides for additional options for both local and foreign investors. Malaysian law provides for the possibility to register a hybrid entity that combines the characteristics of a private company and the characteristics of a partnership.
Here, investors can set up an alternative business vehicle in Malaysia, the Limited Liability Partnership, which is regulated by the Limited Liability Partnerships Act 2012. This business type was created to facilitate the business market and is aimed at those who want to run small and medium enterprises.
In general, a limited liability partnership (LLP) is designed to act as a private company in which the partners are not personally liable for the company's debts. It has fewer compliance requirements and audit exemptions. An LLP requires at least two partners to form, who can be natural persons or body corporates.
Overall, the limited liability partnership (LLP) is designed to act as a private company, in which the partners are not personally liable for the debts of the company. It has fewer compliance requirements and an audit exemption as well. The LLP needs for its incorporation at least two partners, who can be natural persons or corporate bodies.
Investors must be aware that LLPs are taxed at the LLP level and that the entity is formed under a partnership agreement. Non-resident investors can also start a limited liability partnership in Malaysia. Also, while LLPs benefit from simpler compliance requirements, from an accounting perspective, companies must prepare specific accounting documents. What's more, LLPs are obliged to keep accounting records for seven years.
Our accountants in Malaysia can provide you with various services in this regard, including bookkeeping, auditing, payroll and preparation of annual financial statements. Human resource management services are also provided, along with financial analysis and various reports. Once you have decided to start a business in Malaysia, please contact us immediately so that we can provide you with the necessary accounting services.