A Limited Liability Partnership (LLP), commonly known as Perkongsian Liabiliti Terhad (PLT) in Malaysia, is a business structure registered with the Companies Commission of Malaysia (SSM) under the Limited Liability Partnerships Act 2012.

An LLP was introduced as an alternative business structure for entrepreneurs who may want greater flexibility than a Sdn Bhd while enjoying better legal protection than a conventional enterprise or partnership. It combines certain characteristics of a company and a traditional partnership within a simpler business structure.

Unlike a sole proprietorship or conventional partnership, an LLP has a separate legal identity from its partners. This allows the LLP to enter into contracts, own assets, incur liabilities and conduct business in its own name, while generally providing limited liability protection to its partners.

An LLP is also generally more flexible in terms of its internal management, as the relationship between the partners and the operation of the business may be governed through an LLP Agreement. This makes the structure suitable for entrepreneurs, professional practices, joint ventures and businesses involving two or more partners.

At MSIB, we assist clients throughout the LLP registration process — from preparing the required business and partner information, registration with SSM, through to the preparation of relevant documents and ongoing compliance support.

Our approach is designed not only to help you register an LLP, but also to help you understand whether this structure is suitable for your business and to ensure that it begins with a proper structure and a clear compliance foundation for future growth.