What Is a Limited Liability Partnership (LLP)?

Understanding LLPs in Malaysia
March 17, 2026 by
What Is a Limited Liability Partnership (LLP)?
CONZLAB BERHAD 202301040401 (1534320P), Mira

A Limited Liability Partnership (LLP) is a business structure in Malaysia that combines features of a partnership and a company. It allows partners to run a business together while limiting their personal liability.

LLPs are governed by the Companies Commission of Malaysia (SSM) under the Limited Liability Partnerships Act 2012.

Key Features of an LLP

1. Limited Liability

Partners in an LLP are not personally responsible for business debts. Their liability is limited to the amount they invest in the LLP.

2. Separate Legal Entity

An LLP is a separate legal entity from its partners. This means it can:

  • Own property
  • Enter into contracts
  • Sue or be sued in its own name

3. Flexible Management

LLPs have flexible management structures. Partners can decide how the LLP is run without strict rules like a private company (Sdn Bhd).

4. No Share Capital Requirement

Unlike companies, LLPs do not need share capital to start. Partners contribute agreed capital or resources.

5. Perpetual Succession

An LLP continues to exist even if partners leave or change, as long as at least one partner remains.

Who Can Register an LLP in Malaysia?

  • At least two partners are required
  • Partners can be individuals or companies
  • No restrictions on nationality – foreigners can also be partners
  • At least one partner must be a Malaysian resident

Benefits of an LLP

  • Protects personal assets from business liabilities
  • Simple registration and lower compliance compared to a private limited company (Sdn Bhd)
  • Flexible management and ownership structure
  • Suitable for professional services, SMEs, and small businesses


Need Help Registering an LLP in Malaysia?

Not sure if an LLP is suitable for your business? We can help. 

Contact us today to make your LLP setup simple and hassle-free.

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What Is a Limited Liability Partnership (LLP)?
CONZLAB BERHAD 202301040401 (1534320P), Mira March 17, 2026
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