Thirty ringgit holds a business name for 30 days, and another RM500 turns it into a limited liability partnership. That is the whole government bill to register an LLP in Malaysia, and the filing happens online through SSM’s MyLLP system. You need at least two partners, a compliance officer who is a Malaysian citizen or permanent resident living in the country, a written LLP agreement and a name that ends in “PLT”.
The cheap part is the start, because the Limited Liability Partnerships Act 2012 then asks for a solvency declaration every year, 14-day notices for most changes and records kept for seven years, with fines that can run to RM20,000 for a late declaration. The sections below set out each rule with its section number, the official fees and the order in which to do things.
RM500 Registration, a Resident Compliance Officer and No Audit
- SSM charges RM30 to reserve a name and RM500 to register an LLP, according to the schedule to the LLP Regulations 2012 (fees as of November 2026).
- An LLP needs two or more partners and at least one compliance officer who is a citizen or permanent resident and ordinarily lives in Malaysia.
- The annual declaration costs RM200. It is due within 90 days after each financial year ends, and the first one within 18 months of registration.
- An LLP does not need an audit unless its own agreement says so, which is one of its biggest savings over a Sdn Bhd.
- LLPs with capital contributions of RM2.5 million or less can get the same tiered tax rates as small companies, starting at 15% on the first RM150,000.
What a Malaysian LLP Actually Is
SSM describes the LLP as a hybrid of a conventional partnership and a company. The law backs that up: an LLP is a body corporate with its own legal personality, so it can own property, sign contracts and sue in its own name. Partners can leave or join without ending the business.
The real draw is limited liability. Under section 21 of the Act, the LLP alone is liable for its debts and obligations. A partner is not personally liable just for being a partner, and is not liable for another partner’s wrongful act. The exception is your own conduct, because if you cause a loss through your own wrongful act, that liability stays with you.
There is one trap worth knowing early. Section 22 lets a liquidator claw back money a partner took out while the LLP was insolvent, if the partner knew or had reason to know, and it covers payments made in the two years before winding up. Limited liability does not mean partners can strip cash from a failing firm.
LLP Requirements in Malaysia Under the 2012 Act
Before you open MyLLP, check that you can tick every row in this table. Each comes straight from the Act.
| Requirement | What the law says | Section |
|---|---|---|
| Partners | At least two. Partners can be individuals or bodies corporate. | Section 6 |
| Compliance officer | At least one. Must be a partner or a person qualified to act as a company secretary, and a citizen or permanent resident who ordinarily resides in Malaysia. | Section 27 |
| Name | Must end with “Perkongsian Liabiliti Terhad” or “PLT” | Section 13 |
| LLP agreement | Written, in Malay or English, stating the name, business, each partner’s capital contribution and their agreement to be partners | Section 9 |
| Registered office | An address in Malaysia given in the registration statement | Section 10 |
| Professional practice | Only natural persons in the same profession, with professional indemnity insurance and approval from the governing body | Sections 8 and 10(3) |
The Two-Partner Rule and Its Grace Period
You cannot form an LLP on your own. If a partner later leaves and only one remains, section 7 gives the LLP six months to find a second partner. The Registrar can extend that, but not beyond one year in total. Carry on longer than that and the remaining partner becomes personally liable for debts run up in the extra period. The LLP and that partner can also be fined up to RM200,000.
Who Can Be the Compliance Officer
The compliance officer is the person SSM deals with, and the one who files the annual declaration and reports changes. Section 27 lets you pick either a partner or someone qualified to be a company secretary, but either way the person must be a Malaysian citizen or permanent resident who usually lives in Malaysia. If you do not appoint one, the Act treats every partner as a compliance officer, which spreads the legal risk across all of you.
Some people are barred from the role: an undischarged bankrupt cannot act, and nor can anyone disqualified from being a director or company secretary. Acting while barred can bring a fine of up to RM250,000, up to three years in prison, or both.
Picking a Name That Passes
Every LLP name ends in PLT. SSM can reject a name, so search the register before you pay. A reserved name lasts 30 days from the date you lodge the application, unless the Registrar allows longer. That window is short, so have your agreement drafted before you reserve. If you are still brainstorming, our business name generator is a quick way to build a shortlist to check against SSM’s records.
Documents to Prepare Before You File
Most registration delays come from missing information rather than from SSM itself, so gather these details first.
- Partner details: full name, identity card or passport number, nationality and address for each individual partner. For a corporate partner, its name, place of incorporation, registration number and registered office.
- Compliance officer details: the same personal details, plus their consent to act, which section 27(2) requires to be lodged with the Registrar.
- The LLP agreement: signed by all partners and covering the minimum items in section 9. Where your agreement is silent, the default rules in the Act’s Second Schedule apply, so decide profit shares, voting and exits in writing rather than leaving them to the default.
- Business details: a short description of the business and the registered office address.
- Approval letter: only for professional practices, such as a law or accounting firm, from the relevant governing body.
Partners in different cities often sign the agreement electronically. If you go that way, our roundup of DocuSign alternatives for small businesses compares cheaper e-signature tools.
How to Register an LLP in Malaysia on MyLLP
MyLLP sits inside SSM’s SSM4U portal. The process runs in five stages.
- Create a MyLLP user account. Each person who will file, usually the compliance officer, registers as a user on the portal.
- Reserve the name. Submit the name reservation application and pay RM30. If it is approved, the name is held for 30 days.
- Lodge the registration application. Enter the name, business nature, registered office, every partner’s details and the compliance officer’s details. Under section 10(2), each proposed partner must sign the statement that goes with it.
- Pay the RM500 fee. Payment is made online when you submit.
- Receive the notice of registration. Section 11 makes the Registrar’s notice conclusive evidence that the LLP is registered. A certificate, or a copy of one, costs RM20 if you need it for a bank.
On timing, the corporate services firm Mishu puts approval at about five to seven working days when nothing is wrong, longer in busy periods. If SSM refuses, section 12 gives you 30 days to appeal to the Minister.
Official SSM Fees for an LLP
All fees below come from the schedule to the Limited Liability Partnerships Regulations 2012, published on SSM’s website.
| Service | Fee |
|---|---|
| Name reservation | RM30 |
| Registration of an LLP | RM500 |
| Change of name | RM100 |
| Change in registered particulars | RM30 |
| Conversion of a partnership or private company | RM500 |
| Annual declaration | RM200 |
| Extension of time under the Act | RM50 for each 30 days or part, up to six months |
| Rectification | RM150 |
| Certificate or copy of certificate | RM20 |
| Registrar’s confirmation of LLP status | RM50 |
| LLP corporate profile | RM20 |
Worked Example: Government Fees for the First 18 Months
A two-partner consultancy reserves its name, registers, orders one certificate copy for its bank and files its first annual declaration on time.
| Item | Amount |
|---|---|
| Name reservation | RM30 |
| Registration | RM500 |
| Certificate copy | RM20 |
| First annual declaration | RM200 |
| Total | RM750 |
If the same firm misses the declaration date and asks for a 60-day extension instead, add two blocks of RM50, for a total of RM850. That is still far cheaper than the fine for lodging late, which can reach RM20,000 under section 68(5).
Running the LLP After Registration
Annual Declaration of Solvency
Every year, two partners must declare whether, in their opinion, the LLP can pay its debts as they fall due. SSM’s annual declaration page says the compliance officer lodges it online, with an RM200 fee, within 90 days after the financial year ends. The first one is due no later than 18 months after registration.
Take the solvency statement seriously, because declaring without reasonable grounds can bring a fine of up to RM250,000, two years in prison, or both. Where the purpose is to cheat creditors, the maximum rises to RM1 million and five years.
Changes Within 14 Days
A new partner, a new compliance officer, a new address or a change in business must be reported within 14 days under section 17. The fee is RM30. Missing it is an offence carrying a fine of up to RM10,000, plus RM500 for each day it continues.
Records Kept for Seven Years
Section 69 says the books must give a true and fair view and must be kept for at least seven years at the registered office or another notified place. A simple, consistent system goes a long way. Our free small business expense spreadsheet template is a starting point for a young firm. There is no statutory audit unless the LLP agreement requires one.
How LHDN Taxes an LLP
The LLP itself is the taxpayer, not the partners, so it files its own income tax return, Form PT, and pays tax on its chargeable income. LHDN’s published rates for small companies are 15% on the first RM150,000, 17% on the next band up to RM600,000 and 24% on the rest. The same tiered treatment is available to an LLP whose total capital contribution is RM2.5 million or less, as Mishu’s guide to the Act explains. Larger LLPs pay the flat 24%.
Once the LLP has paid its tax, the profit it shares out to partners is not taxed again in their hands, Mishu notes. That makes the LLP a clean structure for a small firm that wants to pay its owners from profits. If the partners also draw a monthly allowance, agree in the LLP agreement how it is treated, and ask a tax agent how it fits your numbers.
| Chargeable income | Tax rate for a qualifying small LLP | Tax on that band |
|---|---|---|
| First RM150,000 | 15% | RM22,500 |
| RM150,001 to RM600,000 | 17% | Up to RM76,500 |
| Above RM600,000 | 24% | 24% of the excess |
On RM300,000 of chargeable income, a qualifying LLP pays RM22,500 on the first RM150,000 and RM25,500 on the next RM150,000, for a total of RM48,000. At a flat 24%, the bill would be RM72,000.
LLP vs Sdn Bhd: Which Should You Register?
The private limited company, or Sdn Bhd, is the default choice for most Malaysian startups. The LLP usually wins on cost and administrative paperwork, while the company wins on raising money.
| Point | LLP (PLT) | Sdn Bhd |
|---|---|---|
| Law | Limited Liability Partnerships Act 2012 | Companies Act 2016 |
| Minimum owners | Two partners | One shareholder who can also be the sole director |
| Ownership | Capital contributions set in the LLP agreement | Shares, which are easy to issue and transfer |
| Main compliance role | Compliance officer | Company secretary |
| Yearly SSM filing | Annual declaration of solvency (RM200) | Annual return plus financial statements |
| Audit | Not required unless the LLP agreement says so | Audited accounts generally required |
| Small-business tax rates | If capital contribution is RM2.5 million or less | If paid-up capital is RM2.5 million or less |
| Suits | Professional firms, consultancies, family and small partnerships | Startups seeking investors, single founders, businesses planning to grow by selling shares |
Our view is simple. If two or three people want to run a service firm, split the profits and avoid an annual audit, the LLP is the better deal. If you plan to bring in angel investors or a venture fund, they will expect shares, so start with a Sdn Bhd. The LLP Act sets out routes into an LLP, not out of one, so make the choice with your funding plans in mind.
Converting a Partnership or Sdn Bhd Into an LLP
Many LLPs start life as something else, and the Act allows two conversion routes, each with an RM500 fee.
- From a conventional partnership: the LLP’s partners must be exactly the same people as the old partnership’s partners (section 29).
- From a private company: no security interest, such as a bank charge, can be in force over the company’s assets, and the LLP’s partners must be exactly the company’s shareholders. You must also advertise the plan, publish a Gazette notice and get creditors to agree (sections 30 and 31).
On registration, the old firm’s assets and liabilities move to the LLP and the old entity is treated as dissolved. Partners stay jointly liable for debts from before the switch. For 12 months, starting 14 days after registration, every invoice and official letter must say the LLP was converted from the old firm, so update your invoice template on day one.
Mistakes That Cost Malaysian LLPs Money
- Reserving the name too early: 30 days goes fast when partners are still arguing over profit shares. Draft the agreement first.
- A compliance officer who lives abroad: a returning Malaysian who has settled overseas may not count as ordinarily resident. Pick someone based here.
- Forgetting the first declaration: the 18-month clock starts at registration, not at the end of the first financial year. Put it in the calendar the day the notice arrives.
- Letting partner changes slide: each late change can cost up to RM500 a day in fines after the 14-day window.
- Taking cash out of a struggling firm: section 22 can make partners repay distributions taken in the two years before an insolvent winding up.
Comparing jurisdictions? Our guides to registering an LLP in India and forming an LLP in the US show how different the rules are elsewhere. American states, for example, often limit LLPs to licensed professionals, while Malaysia lets almost any lawful business use one.
Foreign Owners, One-Person LLPs and Processing Time in Malaysia
How Much Does It Cost to Register an LLP in Malaysia?
The government fees are RM30 for the name reservation and RM500 for registration. Add RM200 a year for the annual declaration. Service firms charge extra if you hire them to file for you.
Can a Foreigner Register an LLP in Malaysia?
Yes. Foreigners can be partners, and Mishu notes they can own an LLP outright. The LLP still needs at least one compliance officer who is a Malaysian citizen or permanent resident and ordinarily lives in Malaysia.
Can One Person Own an LLP in Malaysia?
No. Section 6 requires at least two partners to form an LLP. A single founder who wants limited liability should register a Sdn Bhd, which can have one shareholder and director.
Does an LLP in Malaysia Need an Audit?
Not by law. Section 69(5) says an audit is required only if the LLP agreement provides for one. The LLP must still keep proper records for seven years and file the yearly solvency declaration.
How Long Does LLP Registration Take in Malaysia?
About five to seven working days after a complete application, according to Mishu, though busy periods can be slower. Name reservation is usually the quickest step.
SSM’s LLP Act, Fee Schedule and Annual Declaration Rules
- Suruhanjaya Syarikat Malaysia: Limited Liability Partnerships Act 2012
- Suruhanjaya Syarikat Malaysia: Limited Liability Partnerships Regulations 2012, fee schedule
- Suruhanjaya Syarikat Malaysia: MyLLP
- Suruhanjaya Syarikat Malaysia: Annual Declaration for LLPs
- Lembaga Hasil Dalam Negeri Malaysia: Tax rate of company
- Mishu: 10 FAQs on setting up a limited liability partnership in Malaysia
