How to close a Limited Liability Partnership (“LLP”) in Malaysia?
Due to poor business performance or company being dormant (no activity), business owners may close down their LLP. In this article, WeCorporate explains the processes and costs involved in formally closing down a LLP in Malaysia.
LLP can be closed down/dissolved through compulsory winding-up by court, voluntary winding-up by partners or striking-off by Registrar (“SSM”).
The most common method will be by way of voluntary winding-up, initiated by one of the partners of the LLP when the LLP has ceased operations and discharged its debts and liabilities.
Winding Up – LLP Company
1. The LLP must obtain closure confirmation from EPF/Perkeso/LHDN.
2. It must submit the final tax return to LHDN and obtain a written notice from the Inland Revenue Board (IRB).
3. Upon obtaining the clearance from IRB, notice for winding-up shall be sent to all partners of the LLP.
4. A notice has to published in widely circulated Malaysian newspapers for declaration of such winding-up.
5. 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.
Costs to dissolve a LLP
Around RM4,500 including government fee and newspaper advertisement fee.
To view the processes involved in closing a Sdn Bhd company, visit here How to close a Sdn Bhd company in Malaysia
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