Malaysia: Limited Liability Partnership
LLP
(i) is an alternative business vehicle to carry out business, which
(ii) combines the characteristics of a private company and a conventional partnership
(iii) provides limited liability status to its partners, and
(iv) offers the flexibility of internal arrangement through an agreement between the partners.
The above combination gives entrepreneurs and businessmen a more structured business vehicle compared to a sole proprietorship or a conventional partnership.
LLP provides the flexibility of controlling the business operation in accordance with the partnership agreement whilst enjoying the limited liability status compared to a company which is subject to strict compliance requirements under the Companies Act 1965 in most of its affairs.
LLP is a business vehicle which would offer simple and flexible procedures in terms of
(a) its formation,
(b) maintenance and
(c) termination
while simultaneously has the necessary dynamics and appeal to be able to compete domestically and internationally.