Key Issues And Ambiguities Faced By Limited Liability Partnership (LLP)
Below are the key issues and ambiguities faced by Limited Liability Partnership (LLP). Despite that, LLP is still one of the best choice for entrepreneurs to start their business easily. The entrepreneurs would benefit from the simplify procedures and cost savings resulted from lower compliance requirements. 3E Accounting PLT was among the first batch of accounting firms to register as an LLP. 3E Accounting has the expertise and experiences in advising you on all LLP issues and ambiguities in Setting Up Your LLP; Conversion into LLP; Accounting and Taxation for LLP. Contact us today at firstname.lastname@example.org for a no-obligation consultation!
A. Difficulties in Obtaining Bank Facilities
The processing time for bank account opening for LLP is relatively longer than Company (Sdn Bhd). The bankers informed us that the reason for the prolonged process was due to non-availability of online portal for banker to search for LLP information. Instead, they are required to go to CCM’s counter for retrieval of information*.
As at to-date, our clients are unable to obtain online banking facility from Maybank2u as Maybank2u doesn’t support LLP. In addition, we understand from the bankers, PLT would face difficulties in getting credit facilities such as loan as there is no requirement for statutory audit of LLP’s account.
B. No Online Services for LLP
Most of the government agencies have offered online services nowadays, but it was not extended to LLP.
Despite LLP could be easily setup by using MyLLP portal, the application of business profile and certificate still need to go through CCM’s counter. Whereas CCM offers e-info portal to search information for companies and businesses*.
Inland Revenue Board also doesn’t allow LLP to have tax registration and tax filling vide the online portal. It would be more time consuming as all submission need to be submitted through counters.
C. Lack of Awareness on LLP
Still many people are not aware of LLP/ PLT (Perkongsian Liabiliti Terhad). This may impact the branding of the business. Most of the forms are not catered for LLP such as bank forms and a lot of online portal unable to support keying of registration number for LLP
D. Difficulties in tendering project(s)
Most of the big projects (especially government projects) has specified that only limited companies (Sdn Bhd) can apply for the tenders.
E. Lower Credit Ratings
Lack of awareness on LLP results in lower credit rating for LLP. In addition, LLPs are not required to have annual statutory audit. Some of our customers facing difficulities in obtaining credit from their vendors especially big corporations.
F. Tax Incentives
Specific incentives provided to a company does not apply to a LLP.
G. Ambiguities in Procedures
Most of the guidelines issued by government agencies such as business license application, immigration procedures and etc. mainly focused on company but not LLP.
* SSM has recently launched the newly upgraded MyLLP portal which offers online purchase of LLP business profile, submission of e-forms and etc.
Should you have any issues and ambiguities about LLP, please email us at email@example.com and we will promptly reply within 24 hours.
3E Accounting is honoured to be featured on LLP Article in ACCA Magazine – Rocky Path for LLP rollout, on November 2015. In the article, 3E Accounting PLT was privileged to get interviewed by ACCA Magazine on LLP issues.