Due to poor business performance or company being dormant (no activity), business owners may close down their Limited Liability Partnership (LLP) in Malaysia. If the owner(s) of a LLP in Malaysia decides to shut down the business, it is crucial that they understand how to do so. In this article, we will explain the processes and costs involved to formally close a LLP in Malaysia.
LLP in Malaysia can be closed down/dissolved in three ways which are through compulsory winding-up by court, voluntary winding-up by partners or striking-off by Registrar (SSM).
The most common method is the voluntary winding-up, which is initiated by one of the LLP’s partners after the LLP has ceased operations and discharged all of its debts and liabilities.Therefore, we will focus on this method, by taking you through the process and costs involved to close a LLP in Malaysia.
Related Read: How to close a Sdn Bhd company in Malaysia? »
Process to Close a LLP in Malaysia
The following outline below highlights the key steps involved in closing a LLP in Malaysia through the voluntary winding-up method:
- The LLP must obtain closure confirmation from EPF/Perkeso/LHDN.
- It must submit the final tax return to LHDN and obtain a written notice from the Inland Revenue Board (IRB).
- Upon obtaining the clearance from IRB, notice for winding-up shall be sent to all partners of the LLP.
- A notice has to be published in widely circulated Malaysian newspapers for declaration of such winding-up.
- SSM will declare the LLP is dissolved if no objection is received. If there is any objection, upon withdrawal of such objection by the partners/creditors or when SSM decides the objection made is without justification.
Related Read: How to Strike Off Company in Malaysia »
Costs to Close a LLP in Malaysia
The cost involved to close a LLP in Malaysia is about RM4,500. This includes government fee and newspaper advertisement fee.
Before knowing how to close a LLP in Malaysia, it is important to keep your options open on the possible restructuring plans to save your company. Consider closing down your business as your last resort.
If not, you are strongly recommended to seek professional advice to ensure that you close your LLP in Malaysia properly. At WeCorporate, we provide an extensive range of services and guidance to ease the process of closing an LLP.
The LLP can be closed down in the following 3 ways:
- Compulsory winding-up by court
- Voluntary winding-up by partners
- Striking-off by Registrar (SSM)
The voluntary winding-up by partners of an LLP is the common method.
- SSM will declare that a LLP is dissolved when there is no objection received.
- The LLP is required to submit the final tax return to LHDN and obtain a written notice from the Inland Revenue Board (IRB).
- The total cost to close a LLP, including government and newspaper advertisement fees, is RM4,500.
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