Changing from Sdn Bhd to LLP
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Thread: Changing from Sdn Bhd to LLP

  1. #1
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    Changing from Sdn Bhd to LLP

    Please advise:
    1) is it better to close/sell off the Sdn Bhd and open a new LLP or to change from Sdn Bhd to LLP? What are the procedures and charges involved for each of these?

    2) Any tax differences ie for LLP what is the tax structure like?

    3) Any recommendations for consultant to effect the above change and how do they charge?

    Thanks

  2. #2
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    whats a LLP? Not familiar

    I know of sole proprietor, Sdn Bhd and Bhd....

  3. #3
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    Quote Originally Posted by fRaNkY View Post
    whats a LLP? Not familiar.
    I haven't heard of LLP too.

  4. #4
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    LLP is limited liability partnership. It is new and is like between S/B and partnership. Anyway a company sec just advised me against it so I am not sure now.

  5. #5
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    Quote Originally Posted by lly View Post
    a company sec just advised me against it so I am not sure now.
    Well, like the saying goes, "when in doubt, don't do it".

  6. #6
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    I feel its best to consult a proper Company secretary service professional for accurate advice, acting on hearsay or people not in this profession may lead you astray. CS are in the know on how and what and current regulations.
    I know one who is a personal friend and based in Subang Jaya, but unfortunately decided to retire from the profession soon and will not take on new cases.

  7. #7
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    LLP is basically a hybrid between Sdn Bhd & Partnership.
    Pro : Save on auditing & company secretary fees plus separate legal entity
    Con : Bank still don't know much about LLP, may be difficult to get loan.

    Quote Originally Posted by lly View Post
    Please advise:
    1) is it better to close/sell off the Sdn Bhd and open a new LLP or to change from Sdn Bhd to LLP? What are the procedures and charges involved for each of these?
    You can do the conversion to LLP as per detailed here : http://www.llp.com.my/conversion-of-sdn-bhd-to-llp.php

    2) Any tax differences ie for LLP what is the tax structure like?
    LLP enjoys almost the same tax treatment like a Sdn Bhd. For high-income earners venturing into business, this is definitely better option because your tax will be capped at 20%
    (for next RM500,000 on top of your existing income) as compared to Partnership or Sole Proprietorship.

    3) Any recommendations for consultant to effect the above change and how do they charge?
    Maybe you can call them : http://www.llp.com.my/contact.php
    They seem to specialise in LLP formation. Sorry, can't comment how good they are as I haven't use them yet.

    Thanks
    If you believe in yourself, anything is possible

  8. #8
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    If you want to know more about the tax implications, do refer here : http://www.hasil.gov.my/pdf/pdfam/PR_3_2014.pdf
    If you believe in yourself, anything is possible

  9. #9
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    Thank you Iho688.

  10. #10
    Join Date
    May 2002
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    You are most welcome! Whatever you decide, all the best to you.

    A word of caution is that once a Sdn Bhd has been converted to LLP, it will not be able to re-convert to Sdn Bhd
    If you believe in yourself, anything is possible

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