What Are Limited Liability Partnerships
The robust Malaysian economy is a reflection of its admirable diversity that is known around the world. This healthy economy is not a work of a single person but a combined effort of the government, its agencies and citizens. The government is tasked to be the thinker and planner that strategizes plans that will be given to the agencies for implementation and for the citizens to comply and enjoy. This is simplifying a very complicated process. All the same, the basic structure and intentions are always the same, that is to serve the citizens, because the citizens are the country’s assets. In view of the vastness of the businesses in Malaysia, the strategy it implemented was to create a central agency for its corporate governance.
Accordingly, this agency is the Suruhanjaya Syarikat Malaysia, commonly known as SSM. The main mandate of SSM is to govern all the business entities in Malaysia including its associated territories. In addition, SSM is the agency in-charge on the registration, monitoring and ensuring the compliance of businesses. In view of SSM’s function to register business entities, seven main forms of businesses are laid out, they are the Sole Proprietorship, Partnerships, Limited Liability Partnerships, Sendirian Berhad (Sdn Bhd), Berhad (Bhd), Unlimited Companies and Branches of Foreign Companies. Consequently, Limited Liability Partnerships are new entrants in the Malaysian economy. To learn more about it, here is a brief overview of what Limited Liability Partnership is.
To introduce, Limited Liability Partnership, as mentioned is a new player in the Malaysian business sector. As a form of business, Limited Liability Partnership is also known as LLP. What separates it from common partnership companies is that an LLP combines the qualities of partnerships and conventional companies and it is regulated under the rule of limited liability partnerships.
In an LLP, the legal personality of the owners or partners is separate from that of the company. Appropriately, this gives the company a separate legal identity. The importance of this is that the liabilities of the company will not extend to the personal liability of the owners or partners. Thus, making their personal assets secured from company obligations and liabilities. Evidently, due to the limited nature of liability in an LLP, it is becoming the ideal form of business for small and medium enterprises (SMEs) and start-ups. To illustrate, for the practice of their respective professions, professionals such as lawyers, accountants and the like, form their LLPs. It is the recommended business form and will make the registration with SSM easier.
Regardless of the business form, once a company is settled and the initial structure finalized, the next step is to make it a legal and legitimate company by registering it with SSM. Registration has been made easier by SSM because of offline and SSM register online registration methods. Thus, there is no excuse for companies to not register. Consequently, classifying and registering with SSM are the initial steps to operating and growing a company. There is more to running a company that owners or partners should understand, one is that continuous growth and learning will give the company the best chance to succeed in a competitive world.