Conversion Into LLP
Conversion into a LLP (Limited Liability Partnership)
Existing conventional partnership or private company (Sdn Bhd) may convert into a Limited Liability Partnership (LLP) to enjoy the following advantages:-
- Protection of limited liability to its partners is similar to the LLP enjoyed by shareholders of a company.
- Lower compliance expenses and less strict statutory compliance.
- Permanent existence in law (Continue Legal Entity)
Following are the steps involved in converting an existing traditional partnership or private business (Sdn Bhd) into a limited liability partnership (convert Sendirian Berhad to LLP):-
You must set up a new LLP.
It is necessary to transfer all of the partnership’s or company’s assets and liabilities to the newly formed LLP.
It is necessary to transfer all of the partnership’s or company’s assets and liabilities to the newly created LLP.
The partnership or business must be legally cancelled by submitting the proper documents.
The LLP is ready to start working.
The requirements for converting to an LLP
(a) LLP replaces a traditional partnership.
Partners are unchanged after conversion.
The standard partnership is financially secure.
For professional practice, an approval letter is necessary from the governing body.
(b) From LLP to a private limited company (Sdn Bhd)
After the conversion, the same shareholders exist.
The privately-held business is financially stable.
There are no more unpaid statutory fees owed to government organisations.
The conversion is approved by all creditors.
Impacts of Changing to an LLP
Converting into LLP means, The properties, interests, rights, privileges, responsibilities, duties, and undertaking of the conventional partnership or private business are transferred to the limited liability partnership
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