As a startup or a local entrepreneur, starting a business in Malaysia can be overwhelming. With so many different business structures and types, it can be hard to make the right decision. One of Malaysia’s most popular business structures is the Limited Liability Partnership (LLP). In this article, we help to make the process easier by providing a comprehensive guide to the types of businesses that can be run as Limited Liability Partnerships in Malaysia.
A Limited Liability Partnership (LLP) is a type of business structure that combines certain features of a conventional partnership with the limited liability of a Private Limited Company (Sdn. Bhd.). It is a relatively new business structure in Malaysia and is becoming increasingly popular among startups and local entrepreneurs. It is ideal for businesses that require only a few members and are relatively low-risk.
One of the main advantages of incorporating an LLP in Malaysia is the limited liability it provides to the partners. Limited liability means the partners’ assets are protected from legal action if something goes wrong. This contrasts with a conventional partnership where the partners’ assets are at risk. Another benefit of LLP is that it is a cost-effective way of setting up a business in Malaysia. As an LLP does not require much paperwork or registration fees, it can be a great way for startups or smaller companies to get started.
The last benefit of an LLP is that it allows flexibility regarding the number of partners involved. Unlike most other corporate structures, in an LLP, the number of partners can change quickly, allowing business owners to bring in new partners or remove existing partners as needed.
So, what types of businesses can be run as a Limited Liability Partnership in Malaysia? Here are some examples:
Consulting Firms: Consulting firms are a great example of businesses that can benefit from being run as an LLP. This type of business requires little capital investment and provides its members with high flexibility.
Retail Businesses: Retail businesses like shops and online stores can also be run as an LLP. This structure benefits businesses that require multiple members and are relatively low-risk.
Restaurants and Cafes: Restaurants and cafes are another type of business that can benefit from the structure of an LLP. This structure allows the members to share the risks while protecting the business.
Professional Services: Professional services such as accounting, legal, and IT can also be run as an LLP. This structure allows the members to share the risks and responsibilities involved in the business while also providing a degree of protection to the business.
Moreover, an LLP also provides tax benefits to the partners. In Malaysia, the income tax rate for an LLP is lower than that for a conventional partnership or a Private Limited Company (Sdn. Bhd.). As such, local entrepreneurs who register their businesses as LLP can benefit from tax savings.
These are just some businesses that can be run as an LLP in Malaysia. As the popularity of this business structure grows, more and more businesses will start to benefit from the structure. At Paul Hype Page Malaysia, they are experienced in helping local entrepreneurs and startups understand this business structure to make the most of it. With their ] advice, you can rest assured that your business will be in the best hands.