How I registered an LLP business
Discovering the journey of starting a Limited Liability Partnership entity in Malaysia
LLP, or Limited Liability Partnership is an alternative business vehicle for sole proprietor and conventional partnership. It shares characteristics of a conventional partnership with the limited liability of a company. If you wish to know more about LLP, check out the well-documented FAQs from SSM.
TL;dr Opening of a verified user account requires one visit to the SSM office. Registering an LLP can be done entirely online.
Part 1: Opening of Verified User Account
SSM has made a web portal to provide a one-stop service for LLP entities.
You may visit MyLLP website and click on the “Create Account” button.
When the form pop-up, remember to select “Verified User” for your “User Type”. Verified user is the user type which enables you to register a business entity, and as Compliance Officer (a role required for each LLP entity).
After you have completed the account creation, an email will be sent to you and inform you to visit the selected SSM office to activate your account. Do note that you are not required to print out the email. Showing the email on your phone screen to the officer in charge is convenient and acceptable.
Part 2: Walk-in to SSM
As I was working at one of the buildings near KL Sentral, I chose Menara SSM which is within 10-minute walking distance. As you arrive at the entrance of the SSM office, do go directly to the lift and up to Level 17. You do not need to register yourself or take a number at the Menara SSM ground floor.
As you enter the office at Level 17, take a queue number from Counter 10 by informing the officer that you wish to verify your new MyLLP account. When your number is called, just show the email to the officer in charge along with your MyKad. My overall experience in account verification is extremely pleasant. The process is fast and it took me less than 15 minutes to complete the entire procedure. Do take note of their operating hours so that you can plan in advance and avoid long waiting time.
Part 3: Register the LLP
If you have reached this part, congratulations! You’re very close to own a business entity. You may log in to your MyLLP verified user account, go to “E-Forms” and click on “Register LLP”.
You will next see a pop-up, which queries for the type of LLP registration. If your entity is not related to professional practice such as law or accounting firms, just select “Direct Register LLP - Registration of LLP”.
Next, you are required to “proposed” a name for your LLP. The usage of the word “proposed” is intentional as all business entity names are subject to SSM approval. You have an option to end your business entity name with either “PLT” or “Perkongsian Liabiliti Terhad”. To keep sanity every time you fill up a form with your business entity name, it is wise to select… the shorter “PLT” ;)
Do note that there are constraints in the naming of your entity. In my case, I use an acronym of both partners’ names as the name of the LLP. In a query submitted by an officer, it was explained that the LLP name cannot consist solely of using partners’ names (paraphrased). If you need some ideas, feel free to generate some random names from this website.
For the “Compliance Officer” section, I only managed to set myself as the sole compliance officer, as my partner details are not searchable through the SSM database (as she did not create a MyLLP verified account).
Next, the third section “Partner Information” requires us to fill up all partners’ details. The fields should be self-explanatory and similar to the previous “Compliance Officer” tab.
In the fourth section “Business Codes”, you are required to fill in relevant codes related to your business. The code may not be descriptive, hence you may need to search for common keywords and identify which make more sense for your business.
There are optional documents you may upload in the fifth section “Attachments”. For the LLP entity registration, you may upload a partnership agreement if you have one. It is alright for you to skip if you don’t have it ready, or you have no intention to share with SSM.
A partnership agreement is an essential document that specifies the composition of partners and their shares, the authority of compliance officer, remuneration of partners and more. This document is necessary when you open a bank current account for your LLP entity. By norms, such an agreement can be drafted by a professional lawyer and may amount to RM3000 or more. In my case, I chose to draft myself using a template I found from lowyat.net based on thoughtful considerations. Beware, as this is certainly not by convention and the risk is solely bear by you yourself if you choose not to consult a professional for the drafting of the LLP agreement.
Yes, it cost you RM500 to register an LLP business entity. The payment is simple and straightforward. Just click next to verify all your details in the “Summary” section, and you will be directed to make payment online using credit card or FPX payment facilities.
Upon successful payment, an email will be sent and notify you that your application has been submitted for processing. Within 1–2 working days, SSM will review your application and process accordingly. If everything is well, two emails will be sent to you and confirm the registration of your LLP entity is successful. Congratulations 🎉
This is a simple journal on how I register a Malaysian-based LLP in 2019. I would like to credit Mr. Stingy for his well-documented steps. Things would have been different without his article. Do check it out 😊
Do you wish to know how to set up a current account in Malaysia? Do you wish to know why I chose LLP as my business vehicle? Did you encounter a different experience during your LLP registration? Do share it with me by leaving your comment here. To infinity and beyond!
