🏢 Limited Liability Partnership (LLP/PLT) Ultimate Guide – Malaysia

This is a comprehensive yet beginner‑friendly guide to setting up, running, and winding up a Limited Liability Partnership (LLP), also known as Perkongsian Liabiliti Terhad (PLT), in Malaysia.

1. What Is an LLP/PLT?

An LLP is a hybrid business structure—partnership, part company.

• Separate legal entity: the LLP can own assets and enter into contracts in its name
• Limited liability: partners don’t risk personal assets beyond their capital contribution
• Perpetual succession: continues even if partners change
• Flexible management and taxation: profits taxed at LLP level, distributed profits are tax‑free

2. Why Choose an LLP as a Beginner?

• Low setup cost (~RM 500 vs RM 1,500+ for Sdn. Bhd.)
• Simpler compliance with fewer formalities
• Tax-efficient: lower tax rates and no tax on distributions

3. Step-by-Step: How to Register an LLP

✅ Eligibility

• Minimum 2 partners (individuals or companies); at least one Malaysian-based Compliance Officer
• Registered office address in Malaysia

✅ Steps:

1. Check name availability via SSM MyLLP portal
2. Apply for incorporation (fee RM 500+) via MyLLP
3. Receive LLP Certificate and business profile
4. Draft LLP Agreement (you can use SSM’s Second Schedule as default)
5. Open a bank account (e.g., Maybank SME)

4. Tax Compliance

a) Register for Tax (Form CP600):

• Do this via LHDN e-Daftar
• After successful registration, LHDN will issue a letter with your Income Tax Number (No. Cukai Pendapatan), which will look something like this: PT 02970222209.

b) File Tax Estimate (Form CP204):

• Within 3 months of business start
• Future years: submit 30 days before accounting period starts
• SMEs may defer initial CP204 filings
• Pay tax via 12 equal instalments (starting month 2 or 6)
• Penalties for late/missing submissions can reach RM 20k + imprisonment

Example Scenario:

• Moopt PLT Established: 07.10.2021
• Business Commenced: 01.04.2022
• First Accounting Period End: 31.12.2022 (9 months)
• e-CP204 Submission Deadline for Year of Assessment 2022: 30.06.2022

How to Submit CP204 via MyTax Portal:

You can submit your tax estimation online. This video provides a step-by-step guide:

• Video Guide: How to Submit CP204 through MyTax Portal
• Summary of Video Steps:
  1. Log in to the MyTax Portal.
  2. Change your role to “Director of Company” > Your LLP Name.
  3. Navigate to ezHasil Services > e-Filing > e-Form CP204.
  4. Fill in the required details for the assessment year.
• Further Reading: Guidelines on Submission of Tax Estimate (CP204)

c) File Annual Tax Return (Form PT):

• Due within 7 months post year-end (an extension to 8 months is often given for e-filing).
• LLP tax rate: 24%, SMEs get 19% on first RM 500k
• Submission Portal: MyTax Portal

How to File:

1. Log in to MyTax and select your role as a Director of the LLP.
2. Navigate to e-Filing > e-Form > e-PT.
3. Fill in the required business income, expenses, capital allowances, and other details.
   • Business Code: e.g., 62010 for Computer Programming Activities.
   • Taxable Income: Interest received from banks is generally considered taxable income.
   • Capital Allowance: This is the tax-equivalent of depreciation for business assets.

5. Hiring Employees: What You Must Do

1. Register as employer with LHDN

• Online Registration: LHDN e-Daftar for Employers
• You will receive an Employer Reference Number (No. Rujukan Majikan), e.g., E 09176982508.
• Prepare Job Offer & Verification Letters
• issue Forms E & CP8D by March 31 annually

2. Register with KWSP (EPF): within 7 days of hiring
3. Attempt Online Registration: KWSP Employer Registration (may not always work for new entities).
4. Manual Registration (Recommended):
   • Download Form KWSP 1.
   • Visit a KWSP branch (e.g., KWSP Puchong) with the completed form, partner ICs, SSM certificate, and company chop.
5. Register Employees:
   • Once you have your employer account, log in to the i-Akaun (Employer) portal.
   • Add your employees’ details.
6. Contribution:
   • EPF contributions for a given month’s salary must be paid by the 15th of the following month (e.g., March salary contribution is due by April 15th).
7. Register with SOCSO (PERKESO): within 30 days of hiring
8. Get Portal Access:
   • Download and fill the Borang Permohonan Enrolment Penggunaan Portal Assist.
   • Email it to idportal@perkeso.gov.my. You will receive a user ID and temporary password.
9. Prepare Documents:
   • Borang 1 - Employer Registration Form
   • Borang 2 - Employee Registration Form
   • Surat Akuan Majikan (Employer’s Acknowledgment Letter)
   • SSM LLP Certificate and Partner Information.
10. Register via ASSIST Portal:
    • Log in to the ASSIST Portal and change your password.
    • Go to the “Registration” tab to complete employer and employee details.
    • Download the system-generated forms (SIP Forms 1 & 2), sign/chop them.
    • Upload the signed forms along with other supporting documents.
11. You will receive an Employer Code, e.g., B3202110628B.
12. Deduct monthly PCB/MTD via e-PCB or payroll system (the mandatory monthly income tax deduction from an employee’s salary.)

• For employers without a payroll system, LHDN provides the e-PCB system to calculate, store employee data, and submit MTD payments online.
• e-Data PCB: For employers with payroll systems to upload employee MTD data (CP39 text file). Requires account activation by calling LHDN.
• e-Bayaran: LHDN’s online payment portal for paying taxes via FPX.

6. Annual Filing & Compliance

• File Annual Declaration with SSM via MyLLP within 90 days of year-end
  • First Annual Declaration: Must be lodged no later than 18 months from the LLP registration date.
  • Cost: ~RM 200
  • Portal: MyLLP SSM Portal
• Provide Form EA to employees by Feb 28 and file Form E + CP8D to LHDN by Mar 31
• Keep bookkeeping records (P&L, balance sheet) for minimum 7 years

b. Employer’s Return (Borang E & CP8D)

This is a yearly report submitted by employers to LHDN.

• Deadline: 31st March every year.
• Submission Portal: MyTax Portal

What it contains:

• A list of all employees and their income details for the preceding year.
• You must report details for all employees, regardless of their income level.

How to Submit:

1. Prepare CP8D: This is the master list of employee remuneration. You can generate it using payroll software or by filling LHDN’s Excel template.
2. Upload CP8D: On the MyTax portal, go to ezHasil Services > e-Data Praisi / e-CP8D to upload the data.
3. File Borang E:
   • Log in to MyTax, select your role as “Employer”.
   • Go to ezHasil Services > e-Filing > e-E.
   • The form will be pre-filled with the CP8D data. Verify and submit.

Note: Borang E is only considered complete upon the successful submission of the CP8D.

c. Employee’s Statement (Form EA)

• Form EA is the annual remuneration statement for each employee.
• Employer’s Responsibility: Prepare and provide Form EA to every employee.
• Deadline: By the last day of February every year.

7. How to Close or Wind Up an LLP

Three options: (1) voluntary winding-up, (2) SSM strike-off, (3) court-ordered.

✅ Voluntary Winding-Up Process:

1. Cease operations, settle all debts
2. Obtain tax clearance from LHDN
3. Send registered notices to partners
4. Publish notices in Malay & English newspapers
5. Apply online via MyLLP within 7 days of notice
6. SSM posts a public notice → 30-day objection window
7. If no objections, SSM dissolves LLP; distribute surplus, notify within 14 days

⏳ Cost & Timeline:

• RM 100 application fee
• Cleanup/advertising/legal costs may reach ~RM 4,500
• Objections resolved within 60 days after filing

8. Quick Compliance Checklist

9. e‑BOS (Electronic Beneficial Ownership System) for LLP/PLT

From 30 May 2025, all LLP/PLT in Malaysia must submit or update their Beneficial Ownership (BO) information through SSM’s e‑BOS system via SSM4U.

🛠️ What is e‑BOS?

e‑BOS is an online portal for notifying, updating, or rectifying BO and senior management details under the Companies Act 2016.

📅 Key Deadlines & Requirements

• Mandatory from 30 May 2025 for all LLP/PLT
• Non‑compliance penalty: RM 500/day until rectified
• Submission is instant approval, except for rectifications that require review

✅ How to Use e‑BOS (Summary)

1. Login via SSM4U, click e‑BOS icon
2. Go to Beneficial Ownership Update tab
3. Enter your LLP registration number
4. Choose to Add, Update, or Cease:
   • Provide details: name, DOB, ownership %, address, etc.
   • Or report senior management if no BO identified
5. Review summary, tick declaration, Submit
6. You’ll receive confirmation email; download and save PDF for your LLP BO register

🔄 Rectification (Correcting BO info)

• Fine-tune or remove BO records by selecting Rectification tab
• Provide either a court order or statutory declaration
• Pay RM 300 processing fee

🚨 Why It Matters

• Aligns with global efforts to prevent money laundering
• LLP must maintain accurate BO data or face daily penalties
• Only specific authorities (e.g., Bank Negara, law enforcement, the BO themselves) have access to this info, not the public

Pro Tip: Keep a copy of every e‑BOS submission PDF in your LLP’s BO register. It’s a legal requirement and key for future audit or compliance checks.

10. Other Important Considerations

a. Bookkeeping

Maintaining accurate financial records is crucial for tax filing and business analysis.

• Non-operating Income: Grants received are considered other revenue and may be taxable.
• Accounting Template Resource: The user provided a link to a Google Sheet template, which could serve as a starting point for manual bookkeeping. Link to Google Sheet

b. Audit

While not mandatory for all LLPs under a certain threshold, an audit might be required by banks for loans or by LHDN during a tax audit.

• Cost: Audit fees can range from ~RM 1,100 to over RM 1,500 depending on the firm and complexity.

c. Human Resources Development Fund (HRDF)

If your LLP meets the criteria (related to industry and number of employees), you may be required to register with HRDF and contribute to the levy for employee training and development.

d. Finding Professional Services (Company Secretary, Tax Agent)

For complex matters, it’s advisable to engage a professional firm.

Sample Email Inquiry:

Dear [Firm Name],

We have recently incorporated an LLP and have set up a bank account. We are seeking professional services for our new entity.

Do you provide services such as initial tax registration, tax estimation (CP204), annual tax filing (Form PT), and other related compliance services for a newly incorporated LLP? We are also exploring options for accounting and potential audit services in the future.

Could you please let us know if you can assist and provide a quotation?

Thanks in advance.

11. Tips for Total Beginners

• Use SSM MyLLP for most tasks—portal is essential
• Keep a simple Google Sheet for bookkeeping
• SMEs (under RM 2.5 m capital) enjoy reduced rates & deferments
• Debate with professionals? Professionals are great for peace of mind, not must-haves—avoid penalties

✅ Final Thoughts

From light and low-cost incorporation to straightforward tax compliance, an LLP is often the best fit for Malaysian micro‑businesses looking to stay lean. Just follow the steps, keep good records, meet deadlines, and you’ll be running smoothly—or winding down—without drama.

👍 Want a Notion template, checklist, or one-click forms manual? Happy to share!