Limited Liability Partnership, LLP

A Limited Liability Partnership (LLP) is a type of business entity that permits a partner to be shielded from liability of partnership obligations created by another partner's, or person's misconduct.

Advantages of Limited Liability Partnerships

  • It protects members from personal liability, except to the extent of their investment in the LLP.
  • LLPs are not a separate entity for income tax purposes. Profits and losses are passed through directly to the partners.

Registration requirements for Labuan Limited Partnerships

  • A LLP are subject to the same restriction or prohibition applicable to a Labuan company under the Labuan Companies Act 1990. The general process for registering Limited Liability Partnerships involves the following:
    • The applicant must appoint a Labuan trust company for the registration, which would conduct due diligence on the applicant. All documentation required to be submitted to The Authority must be filed through a Labuan trust company
    • The applicant must reserve its company name. A Labuan LLP shall have either the words "Limited Liability Partnership", "(Labuan) L.L.P." or "Labuan LLP" as part of its name (any other abbreviations in romanised characters are accepted by The Authority). Its own name may be in any language or characters.
  • Partnership Registration under Labuan Islamic Financial Services and Securities Act 2010 (LIFSSA)
    • Section 131 (2) of the LIFSSA Act requires that the applicant appoint a qualified person to act as a Syariah adviser for the partnership. The duties of the Syariah adviser pertain to the management and operations of the Islamic partnership to ensure compliance with Shariah principles.

Governing Legislation

Labuan Limited Partnerships and Labuan Limited Liability Partnerships Act 2010