Winding Up LLP
Winding up an LLP in Malaysia involves a formal process to officially close the business. There are three main methods:
1. Voluntary Winding-up: This is the most common method, initiated by the partners when the LLP has ceased operations and settled all debts. Here's a simplified overview:
Obtain clearance: Get confirmation from authorities like EPF, Perkeso, and LHDN regarding outstanding contributions and taxes.
Final tax return: Submit the final tax return to LHDN and obtain a clearance notice.
Partner notification: Inform all partners about the winding-up through written notices.
Public notice: Publish a declaration of winding-up in both English and Malay newspapers.
Application for dissolution: Submit an application with supporting documents to the Registrar of Companies (SSM) for a declaration of dissolution.
Surplus distribution: After dissolution, any remaining assets are distributed to partners according to the LLP agreement.
2. Compulsory Winding-up: This method involves a court order, typically due to insolvency (inability to pay debts) or other legal reasons. The court appoints a liquidator to oversee the process of selling assets, paying creditors, and distributing remaining funds.
3. Striking-off by Registrar: The Registrar may remove an inactive LLP from the register if it fails to comply with filing requirements or has not operated for an extended period. This method is not an application process.
Additional Resources:
It's important to note that this is a general overview, and the specific steps may vary depending on your situation. Consulting with a legal professional or qualified corporate service provider is highly recommended to ensure you follow the proper procedures and comply with all relevant regulations.
How Bestar can Help
Some general information on how Bestar might be able to assist you with the process of winding up an LLP in Malaysia:
Guidance and expertise: We can guide you through the entire winding-up process, ensuring you comply with legal requirements and complete all necessary steps.
Preparation of documents: We can assist in preparing and filing documents like tax returns, applications to the Registrar of Companies, and public notices.
Communication with authorities: We can liaise with relevant authorities like LHDN and SSM on your behalf, saving you time and effort.
Debt collection and distribution of assets: We can help manage the collection of outstanding debts and the distribution of remaining assets to partners according to the LLP agreement.